WE CARE ABOUT YOUR RETIREMENT

THE MONARCH UMBRELLA RETIREMENT BENEFITS SCHEME

The Monarch Umbrella Retirement Benefits Scheme allows for participation by multiple, unrelated employers to adhere into a single pension scheme. They are popular among organizations due to their cost-effective and “hands-free” nature.

We offer a flexible arrangement that employers utilize to realize a retirement saving objective for their employees. The scheme has the unique benefit of easing compliance and scheme set up cost costs as it is already registered with RBA and KRA.

Additionally the burden of scheme administration is borne by us. The Monarch Insurance is the sponsor and is responsible for the overall management of the scheme. This makes this scheme advantageous as compared to the occupational scheme since less procedures and paperwork are required.

The Monarch Umbrella Fund gives these organizations an opportunity to pool together into one scheme, with each organization having a flexibility to design their Trust rules through the deed of adherence like any occupational scheme while having shared service providers and governed by one Trust Deed.

How to join this scheme

The management of the participating employer will meet and make resolution to join Monarch Insurance Umbrella Retirement Benefits Scheme.

The participating employer signs a participating agreement with the Scheme. The agreement will stipulate among other things the contribution rates for both employee and employer, the retirement age and the vesting period

In addition, the participating employer will provide the following documents, copies of National ID’s of the Representatives, Pin certificate of incorporation of the Employer

Employees complete membership application form, nomination of beneficiaries form and provide a copy of the national identity card.

Benefits

Reduced costs to the respective scheme as all services of the fund manager, custodian, trustees, administrator, and auditor are co-shared in the pool

Improved returns to the scheme given that the funds are pooled hence enjoy the economies of scale that comes with the diversification of large portfolios

Reduced burden on the employer as the scheme will be managed by a corporate trustee and will concentrate on their core business, while the employees will benefit from the interest received on the investments

Small to medium-sized organizations that cannot set up a stand-alone retirement scheme come together to pool their funds under one scheme (the umbrella) for investment purposes

Each fund is held in a separate account but invested as one fund

Guided option to set up a Stand-alone fund through the assistance of Monarch Insurance once the scheme grows to accommodate stand-alone cost

The compliance management of the scheme which is highly regulated by the Retirement Benefits Act will be left to the Corporate Trustee hence the employer will rest easy.

Structure

The Scheme is established under an irrevocable Trust, registered with RBA and KRA with The Monarch Insurance being the Sponsor of the scheme

The assets of the sponsor are separated from assets of the scheme

The scheme has appointed a corporate trustee to hold the fund in the members and beneficiaries

The Scheme is a hybrid with both Pension fund and Provident fund features

The employer and employee jointly contribute to the fun

The investments are managed by an appointed Investment Manager

The assets are held in custody by an appointed Custodian

The scheme administrator is done centrally by an appointed administrator