Personal Retirement Scheme
The Personal Retirement Scheme (PRS) is managed by Kenindia Assurance Co. Ltd. Only persons who are not currently members of another registered scheme can members of the PRS.
KEY FEATURES OF THE PRS
Contributions:-
Tax-free limit of Kshs.20, 000* per month, (Less contributions to the NSSF), from 1st January 2006.
* Kshs.240, 000 per annum for clients who make annual tax returns.
Minimum Kshs.2, 000 per month. This requirement will be waived for a related group of members. Any contribution exceeding the tax-exemption limit is invested separately, in a taxable fund.
Flexible i.e. may be monthly, quarterly, half-yearly or yearly as suits your requirements. You may change the mode of contribution at any time subject to the minimum contribution level.
Single lump-sum contributions are allowed. Transfers from other registered funds are tax-exempt.
Contributions may be escalated to keep up with inflation. The rate of escalation may be advised at the outset or at the time it is to take effect.
Retirement Age:
Statutory: 55 years. Retirement before this age is treated as a withdrawal.
Retirement Benefit:
This is accumulated over the life time of the scheme and will be utilised to purchase a pension at retirement either from Kenindia Assurance Co. Ltd. or any other Income Tax approved institution. The minimum period during which the pension must be paid is ten years.
On withdrawal before retirement however, the full amount accumulated is payable to the member after a 3 months’ notice period. Applicable tax will be deducted ontotal fund accumulated.
Vesting: Where an employer contributes to the scheme, both the employer’s and the employee’s contributions vest immediately in the member.
Illustration: Assuming contributions for 15,20,25,30,35 & 40 years at Kshs.2,000/= and Kshs.17,500/= per month, the following will accrue at 10%* p.a.:-
Term | Total Contribution | Retirement Fund | ||
| @2000 p.m. | @17500 p.m. | @2000 p.m. | @17500 p.m. |
15 | 360,000 | 3,150,000 | 838,793 | 7,339,443 |
20 | 480,000 | 4,200,000 | 1,512,060 | 13,230,525 |
25 | 600,000 | 5,250,000 | 2,596,362 | 22,718,171 |
30 | 720,000 | 6,300,000 | 4,125,686 | 36,099,754 |
35 | 840,000 | 7,350,000 | 6,797,581 | 59,478,825 |
40 | 960,000 | 8,400,000 | 11,100,694 | 97,131,077 |
Highest Net Returns
Years
2000 - 11.5%
2001 - 10.5%
2002 - 10.5%
2003 - 9.5%
2004 - 8.5%
2005 - 10.0%
2006 - 11.0%
2007 - 11.0%
2008 - 9.5%
2009 - 11%
DOCUMENTS TO SIGN:
PRS Application form – Part of BrochureTerm Life Assurance – Optional, offered and charged separately by Kenindia Assurance Company Ltd.
REPORTING:Yearly when a rate of return is declared.
CHARGES:Statutory RBA Levy – 0.2% of closing Fund Value payable annually.