The scheme is aimed at smart organizations who do not wish to be entangled in legal, administrative and statutory liabilities applicable to retirement benefits scheme. It is ideal for employers who do not wish to set up their own staff Retirement Scheme, but would be willing to flexibly facilitate contributions, collection and remittances whilst not being bogged down by the rigorous compliance requirements for setting up a scheme.

SCHEME SET UP

Legal and Statutory Requirement

The scheme duly registered by Kenya Revenue Authority (KRA) and the Retirement Benefits Authority (RBA) as a Retirement product of Madison Life Assurance.

In this regard, therefore, Madison Life Assurance ensures that all legal, statutory and administration requirements for all the funds operating under the scheme are met.

Key Advantages:

Employers Involvement Simplified so as they focus on their core activity.

This fund is designed in such a way that Madison (and not the customer) is responsible for:

• Full Administration Service which includes: Installation and maintenance of member and beneficiary records, contribution and fund balance records, processing of withdrawal, death or retirement benefits, member education service, filling of ongoing compliance records to RBA and KRA, arranging for the member’s annual member’s meeting, issuance of member fund statements and scheme statement to the employer etc.
• Full Trusteeship Service: The scheme has a corporate trustee thus ensuring professional management. The duty of the employer is therefore limited to ensuring monthly contributions are remitted to Madison Insurance (K) Ltd.

Immediate Access to Tax Relief Benefits: The scheme is duly registered by KRA and RBA. Employers and Employees who join the Fund will gain immediate access to all the tax privileges of a registered retirement scheme which include:

• Tax deductible contributions up to Kshs.20,000.00 (current limit) per month per member.
• Tax relief on death, withdrawal and/or retirement benefits up to the applicable limit as at the date of payment.
• Full tax exemption on the investment income.

Returns

Madison gives competitive annual returns to its clients. The declared rates for the last 9 years is as follows:

• 2021 – 11%
• 2020 – 8%
• 2019 – 10%
• 2018 – 10%
• 2017 – 10%
• 2016 – 8%

Requirements for commencement of the policy

• Completion of group proposal form
• Certificate of incorporation
• Copy of PIN
• Individual application forms
• Payment of the first contribution