Personal Pension Plan (PPP) – A Retirement Plan

Description

A Personal Pension Plan is a long term investment geared towards assisting members secures a decent retirement. The Money is invested in various financial instruments that enable it to grow over the savings period with the intention of giving you a regular income at retirement.

The pension plan allows members to accumulate savings for retirement. It provides assurance of a stream of income or lump sum payments at retirement.
The retirement benefits are protected under the retirement benefits act and receive benefits from the funds as provided for in the scheme rules and regulations.
The Scheme allows members to make regular payments (Monthly, quarterly, half yearly and annually) or lump sum contributions to the fund during their work life.
The contributions are then pooled in a portfolio and invested in line the chosen investment option strategy.
The funds are invested and the earnings re-invested at compounded rate until the retirement date.
The funds are tax exempt.

Features of the Plan

Age: Any individual above 18 years
Flexibility: An employer has the option to contribute an equal or higher amount as an employment initiative, subject to applicable tax laws.
Affordability: The Minimum contribution is Kshs. 1,000.00. There is no upper limit on contributions.
Tax exemption: You can make transfers between schemes with no tax obligation.
Portability: Members can move their benefits from one fund to another.

Payout Options

Lump sum Payments

All or 1/3 of the accumulated benefits will be paid as a single lump sum amount on attainment of retirement age, ill health retirement or death prior to retirement

Annuity or Income draw down

The remaining 2/3, as applicable will be utilized to purchase an annuity plan with a pre-screened insurance company or invested in income draw down plans from which regular income will be paid upon retirement.

The Investment Process