Umbrella Retirement Benefits Schemes
Umbrella Pension Scheme is a voluntary retirement benefits scheme. It’s basically a savings arrangement for employees while still in-service so that when they retire, resign, pass on, the accumulated amount saved plus all the related interest is utilized to purchase an annuity for such a retiree.
A pension is therefore paid to the individual who is part of the scheme if the above mentioned does occur to them. The amounts paid are accumulated for the period the member has been in service with interest.
Umbrella Retirement Benefit Plans
- It is hassle free for an employer: The scheme completely frees an employer from the hassles of establishing and overseeing the running of the scheme.
- It is hassle free for an employer: The scheme completely frees an employer from the hassles of establishing and overseeing the running of the scheme. It does this by providing an all-around package of the following services Full Administration, Custodian and Investment Service. What is left for the employer to do is only to ensure timely payment of monthly member contributions to Britam, update new entrants (employees) and exits.
- Flexibility: The customer is free to decide on the following:
- The monthly contribution percentage by employer and employee. Employees are free to make Additional Voluntary Contributions.
- Choice of fund: A pension fund, whereby a maximum of 1/3 of the accumulated amount is payable as a lump sum and 2/3 in the form of regular periodic payments. A provident fund, whereby the entire amount is paid in a single lump sum.
- Normal retirement age.
- Immediate access to tax relief benefits: Individuals who join the fund gain immediate access to all the tax privileges of a registered retirement scheme.
- Cost optimization: Funds under the Guaranteed Fund equitably share the running costs thereby giving customers competitive added value for money. The costs are:
- Administration fee: 1.5% of contributions received during the year. This is waived for the first calendar year. No administration fee is charged on the Umbrella Scheme.
- RBA levy: 0.2% of the fund as at 31st December is payable to the regulator.
- Audit fee: As per appointed auditor. No audit fee is charged on the umbrella scheme.
Enwealth Umbrella Fund
- The funds are invested in accordance to the investment policy statement that is prepared by an independent financial advisor and reviewed every 3 years.
- Member Education Services from the Enwealth Training Team which covers personal financial management, pre-retirement training and Change Management among others.
- Access to our online portal that allows individual members with secure web-based access to their scheme data including records on their Nominated Beneficiaries, contributions history, benefits projections and benefits statements.
- Access to our innovative products that include the, Income Drawdown Fund, pension backed mortgages.
- Members are able to benefit from economies of scale so that costs have a reduced impact on returns declared to members.
- The ability to diversify more effectively. Evidence shows that a large well-diversified investment portfolio outperforms smaller, less diversified portfolios.
- The management of all aspects of the fund are outsourced. Therefore, the Employer does not need to be involved in complex governance, trusteeship, investment, custody & administration.
- Members can use up to 50% of their accrued savings for the purpose of securing a mortgage.
- Pensions form an important fallback position for contributors at retirement or earlier in the event of job loss.
- The scheme is regulated by URBRA. URBRA is responsible for the protection of members rights.
ICEA LION Umbrella Retirement
- An individual
- An employer of a group of employees
- Set-Up Costs: You as the employer joins an already established scheme, you do not need to incur the hefty costs associated with setting up a segregated scheme
- Running Costs: Our scheme has a common pool of service providers whose costs are shared amongst the various schemes thereby maintaining costs at a minimum
- Reduced Exposure: There are no heavy fiduciary responsibilities assumed by you as an employer because the ICEA LION is well-known, has an experienced board of trustees and is managed by respected industry professionals
- Enhanced Staff Loyalty & Retention: By offering employees essential benefits, you as the employer are able to retain productive and competent employees, while offering a competitive package to attract new talent
- Higher Returns: From participating in a larger pool, your employee’s costs are kept at a minimum allowing them as members, to enjoy cost savings and economies of scale which translate into improved investment returns
- Diversified Portfolio: Because of our scheme’s size, your employees get the added advantage of accessing a wider spread of investments in various financial instruments
- Peace of Mind: Member retirement funds are managed by our independent retirement fund professionals who are accountable and are tasked with ensuring that the umbrella fund is compliant with all relevant legislation. We also commit to delivering value to our members
- Regular Updates: As our member, we regularly update your employees on the status and performance of their retirement benefits
- Connectivity via ICT: Our robust ICT administration platform ensures that your employees receive communication in a regular and effective manner
- Security: Our fund is supported by a stable, financially sound and well managed organization with over 35+ years of experience
Annuity plan
- Amount: Minimum of Ugx 100,000/-
- Interest: 3% or 5% each year in order to offset the effects of inflation.
- Flexibility in Payouts: Upon purchasing an annuity plan at ICEA LION, you get to choose how regularly you want to receive your payouts. You can opt to receive payments monthly, quarterly, tri-annually, semi-annually or annually in advance.
- Upwards Adjustments Of Payout Amounts: The amount paid to you can be agreed on and remains fixed throughout the period for level annuities at an escalation of 0%. However, it could also be increased at a fixed percentage of either 3% or 5% each year in order to offset the effects of inflation: this is called increasing/escalating installments.
- Growth of Funds: The funds are invested in diversified financial vehicles that offer competitive returns which enable us at ICEA LION to pass on the returns to you as an annuitant in form of competitive annuity rates.
- Regulatory Compliance: The annuity plan fund is invested by professionals and in accordance with the law (The Insurance Act).
- Last expense benefit: The annuity plan has a funeral benefit of Ugx. 3M in case of the unfortunate demise of the annuitant.
- Medical benefit: The annuity plan has an optional medical cover that enables the annuitant to have access to medical services at a subsidized premium.
- Enables you to sustain the kind of lifestyle that you were used to during your active working years.
- Ensures that you will have a steady stream of income in retirement; for life or for a preferred number of years (e.g. 5, 10, 15 or 20).
- Cushions you against the possibility of outliving the initial investment (capital) you paid to the annuity provider
Jubilee Life Umbrella Scheme
- Eligible employee of an employer
- Individual.
- It eases compliance and scheme set-up costs as it is already registered with the RBA and KRA.
- The burden of administration is borne by Jubilee Life Insurance Limited.
- Less procedures and paperwork are required.
- Upon signing up, employers execute a deed of adherence to scheme rules defining contribution rates, eligibility, retirement ages etc. ensuring compliance simple and well defined.
- No set-up fee
- Financial securityTax relief benefit
- Guaranteed payment after retirement
- Payment to dependents in the event of loss of life
Kampala City Traders Association (KACITA) Provident Fund
- The scheme is open to anyone with an income, including traders, self-employed individuals, and those in the formal sector.
- The scheme is open to anyone with an income, including traders, self-employed individuals, and those in the formal sector. Those under 18 can also have supplementary accounts managed by a guardian.
- Voluntary contributions: Members can contribute freely, with no cap on the amount.
- The daily minimum contribution is UGX 3,000.
- Members can access their savings once they turn 50 or after contributing for at least 10 years.
- Interest: The fund manager invests member contributions into productive ventures, and the savings earn a competitive annual interest.
- The scheme is administered by ICEA Life Assurance Company Limited, with Housing Finance as the custodian bank and Stanlib Uganda as the fund manager
- Competitive annual interest: The fund manager invests member contributions into productive ventures, allowing the savings to earn a competitive annual interest. The returns are distributed to members on a pro-rata basis at the end of the year.
- Guaranteed growth: The fund provides an “irrevocable guarantee against capital depreciation,” meaning your capital is protected from declines in the value of the scheme’s investments.
- Flexibility: The scheme allows for voluntary contributions, with a minimum of just UGX 3,000 per day. There is no maximum limit, and members can deposit money at their convenience
- Regulated supervision: The scheme is regulated by the Uganda Retirement Benefits Regulatory Authority (URBRA), providing an extra layer of security and oversight for your savings.
- Open to all with income: The scheme is accessible to anyone earning an income, including those who are self-employed, in the informal sector, or already contributing to other retirement schemes
Liaison Umbrella Fund
- The scheme is open to
- An individual
- A group of individuals
- A body corporate
- An association
- An employer of a group of employees
- Under the Umbrella, all your savings are protected from creditors.
- Liaison Umbrella Fund gives you full control of your retirement planning. With the option of additional voluntary contributions, you can achieve the dreams you have for your retirement.
- Liaison Umbrella Fund continues to harness the power of technology to deliver services at your convenience through our versatile online platform, SMS network and banking system. These allow your benefits to be paid within the shortest time possible. We take pride in our online ICT platform, which has expanded access to direct services to members across the world.
- All our solutions are local and tailored to our client needs. We always seek mutual growth through the promotion of local solutions.
- Contributions are remitted into the Umbrella Fund.
- Funds are immediately invested in diversified investment asset classes.
- Returns on investments are distributed to members as interest.
- At the point of exit, a member completes a withdrawal form and is paid their benefits in a 3-step process.
- A lump sum is credited to the withdrawing member within one week.
- A bonus interest payment is made to members who exit before the audit.
The Octagon Income DrawDown
- Interest: 15% per annum.
- A series of regular monthly payments provided by your reinvested funds of your retirement savings
- The funds are invested in a conservative manner with underlying investments being bonds and bank deposits.
- The retiree will specify the amount on annual income accessible in advance; noting the law permits upto 15% per annum. access
- The funds reinvested remain relatively conserved owing to the long run investment returns it earns
- Allows freedom to set your income
- Funds are conservatively invested hence capital preservation is assured.
- Allows access of the income adjusted surplus after the 10 years period.
- There is perpetual existence of the fund
- Retirees above 65 years are not taxed.
Octagon Sente’Yo Savings Plan
- Amount:Make small savings starting from
UGX.1,000/-
- You can transfer-in your benefits from other schemes at no cost.
- No minimum contributions. Octagon Sente’Yo Savings Plan gives a person flexibility to deposit money whenever it is available and make small savings starting from UGX.1,000.
- High investment return
- Octagon Sente’Yo Savings Plan also comes with free internet banking access, free mobile banking access, free email statement every month
- Through MTN and Airtel money, you can open up an Octagon Sente’Yo Savings Plan or deposit and withdraw from your account. (Offline Saving made easy)
- An online automated system where members can access their savings account information
- No early withdrawal penalties, you can access your money anytime.
- No monthly maintenance charges/fees
- It allows unlimited withdraw and deposit, no charges.
- Experience first class service and quick turnaround
- Account holders will be guaranteed access to all Octagon free financial literacy trainings.
- The saved money accumulates interests that increases the amount saved