These are employer sponsored arrangements, set up under irrevocable trust. Upon being set up the scheme is a separate legal entity.
The principle objective of setting up an Occupational Retirement Benefits Scheme is to provide for employees upon their retirement or for their dependants on the unfortunate demise of an employee.
As an employer, you need to be able to attract and retain high calibre staff. One of the ways in which several leading organisations do this is through the establishment of an Occupational Retirement Benefits Scheme.
Your occupational retirement schemes can either be:
- a defined contribution scheme, or
- a defined benefit scheme.
With the defined contribution scheme, which has proven to be very popular in the East African region, the amount or rate of contribution is determined at the start of the scheme.
At the time of retirement, the overall benefit is determined by the total amount of contributions and the accrued interest earned on the contributions.
For example, 5% of an employee's salary may be deducted every month, and together with the employer's contribution, deposited in an interest-earning fund.
With the defined benefit scheme, the employer promises a specific monthly benefit at retirement which can be estimated in advance based on factors such as age, earnings, and years of service.
The scheme set up can be:
- a provident fund scheme, which provides a lump sum of accumulated benefits at retirement pension scheme which provides an income for life as well as a part lump sum payment.
- Whichever scheme you choose, whether it is determined by the ways in which the contributions are collected or how the benefits are received, you are in safe hands with Jubilee Insurance.
At Jubilee Insurance, we tailor make the scheme to suit your needs and offer a range of personalised services such as the overall investment of your funds, administration of your scheme, professional advice and guidance on how to manage your scheme.
Schedule a free appointment with us to learn more.