Factors to consider when taking an Umbrella Pension Plan

Small to medium size enterprises (SMEs) and employers who wish to outsource the management of pension funds can now enjoy the advantages of a fully registered pension scheme thanks to the Umbrella Pension Scheme by Kenya Orient Life Assurance. This pension plan collectively puts together the retirement investment funds of various employers in an adjustable method in a bid to help employees achieve a decent and secure retirement. Pooling of resources reduces the average cost of running the fund, a hassle-free experience since Kenya Orient Life takes the regulatory and governance pressure and allows employers to focus on their core businesses and complements the returns and benefits due to the scale of the investment fund.

Below are key factors to bear in mind when taking up an Umbrella Pension Scheme:

Regulation

Before you entrust an insurance provider with the retirement savings of your employees, take a step further and find out whether they are answerable to a regulatory authority. This means that they are bound to comply with their role of trusteeship and legal action can be taken upon them in case of any issues. A reliable Umbrella Pension Scheme provider whose proceeds are overseen by the relevant authorities will ensure that you receive superior customer service. Orient Umbrella Pension Plan is duly registered by the Kenya Revenue Authority (KRA) and the Retirement Benefits Authority (RBA) as a retirement fund provider.

Flexibility

Different companies operate differently and thus, contribution channels towards an umbrella scheme will vary from one employer to another. In this case, choose a provider who provides the flexibility that suits the needs of your employees. Depending on how your organization is structured, make sure that this product is tailored to meet the needs of your employees in the long run. With this in mind, you will need to find an umbrella pension plan that will be flexible enough to accommodate future adjustments that might take place in your organization. The Orient Umbrella Pension Plan is flexible enough that it allows employers to specify the retirement age for employees and any other special rules that can be included.

Fees and Charges

There are various fees and charges incurred as you take up an Umbrella Pension Plan including; administration fees, audit fees and a retirement benefit levy. As you consider taking up an Umbrella Pension Plan, ensure there are no extra charges and that the fees included are pocket friendly and do not eat up a large portion of your contributions. At Kenya Orient Life Insurance, we believe in transparency and thus have ensured that there are no hidden charges when signing up for our umbrella scheme. Our fees are also competitive and friendly to our customers.

Ease of Access to investments

Imagine saving up for retirement for many years only to be faced with a lot of back and forth upon the maturity of your retirement funds. Be keen when selecting a retirement investment company for your employees so that they can easily access their funds. Through the Orient Umbrella Pension Plan, employees can access their funds upon achieving the stipulated retirement age. As a pension scheme customer, always ensure that you alert your pension provider to transfer your investment funds to another umbrella fund when changing jobs so that you can always amalgamate your funds into one service provider.

Return on investments

You want to enjoy the best returns on investments upon maturity of your investments and saving for retirement through an Umbrella Pension Scheme should not be any different. Choose a provider with the most competitive returns, that also aligns with your goals. Due to the high-yielding investments, Orient Umbrella Pension Plan offers an attractive minimum guaranteed interest rate of 4 per cent per annum. In addition, there is a bonus declared at the end of every year.

Sign up your employees to the Orient Umbrella Pension Plan today and let us do the investment work for you. You can rest assured that your future is secure with us.