2. BRITAM

3. “ A diversified financial services group with primary interests in the Insurance, Asset Management, Banking and Property sectors”

4. Our Structure, Businesses and Strategic Alliances
100%
100%
100%
100%
100%
100%
British-American Insurance Company (Kenya) Limited
British-American Insurance Company (Uganda) Limited
British-American Insurance Company (Rwanda) Limited
British-American Insurance Company (S.S) Limited
British-American Asset Managers Limited
Bramer Properties
10.63%
21.37%

5. Our Journey so far
“ 48 years of continuous growth and innovation, and we are geared for many more”
1965 British-American Insurance Company Ltd Bahamas established a branch in Kenya
Incorporated in 1979(Kenya)
2004 Holding Company, Asset management & investment in Equity Bank
2007 investment in Housing Finance
2010 Britam Insurance Company (Uganda) …
2011 Listing on the NSE
2012 Britam Insurance Company (South Sudan)
2013 Britam Insurance Company (Rwanda)
Strategic partnership with Acorn Group
Acquiring 99.9% of Real Insurance Company with additional presence in Tanzania, Malawi and Mozambique

6. Our Brand, Vision, Mission and Values
YOUR Journey is OUR Journey
Vision
“To be Your most trusted financial Partner”
Values
Respect
Integrity
Continuous improvement and innovation
Passion
Operating Principals
Market leadership
Professionalism
Synergy
Operational Excellence
Personality
Visionary
Approachable
Mission
“To provide outstanding financial services to our customers”
“ the cornerstone of our existence”

7. RETIREMENT PLANNING

8. What is Retirement planning?

9. Assessing Retirement Needs
Retirement Age
Main source of income
Lifestyle expenses
Risk that you are willing to take
Minimum return you expect to earn at retirement

10. Current Kenyan Retirement planning culture

11. Benefits of Pension Savings
Tax exemptions on contributions
Tax exemptions on retirement benefits: Monthly pension income of up Ksh.600,000 is exempt from income tax.
Professional management
Exclusion of retirement benefits from one’s estate.

12. BRITAM INDIVIDUAL RETIREMENT PLAN

13. Britam Individual Pension Plan
Scheme is set up under the British American individual retirement plan.
- Individual Pension Plan (IPP)
- Individual Provident Fund (IPF)
KCB are the corporate trustees of the scheme.

14. RETURN ON GUARANTEED FUNDS - 5%
Assets are invested with the assets of other Schemes
Return to the Members is guaranteed at 5% Plus a bonus rate every year

15. Company
2006
2007
2008
2009
2010
2011
2012
2013
8 yr Av
Britam
18.00
10.50
6.00
9.00
15.00
16.00
12.06%
Jubilee
12.75
12.00
8.01
8.20
6.50
14.00
10.87%
Pan Africa
12.50
10.00
12.5
2.00
9.94%
ICEA
9.25
8.10
8.15
11.50
7.50
9.68%
CFC
11.00
9.50
5.00
10.0
3.00
8.06%

16. Scheme Membership
Eligibility - No restrictions of membership to a scheme on basis of gender, race, religion or any other manner which is discriminatory
No withdrawal of benefits while still in active employment
A member cannot assign or borrow from the scheme (assignment may be allowed for the sole purpose of securing a mortgage loan)

17. Taxation Benefits
A member’s monthly contribution is tax deductible up-to Kshs. 20,000 per month (or Kshs. 240,000 per year)
Tax free withdrawal/retirement benefits of Kshs.60, per year of membership up-to a maximum of Kshs. 600,000/=
Tax exemption on the investment income
No tax is charged from age 65 years

18. Withdrawal Benefits Retirement
Normal Retirement – on attaining the normal retirement date as prescribed by the scheme.
Early retirement – after attaining 50 years
Late retirement – at any age after normal retirement age
Ill-health retirement – at any age subject to certification by a qualified medical practitioner
Retirement Benefits
Full Balance of the member’s fund paid at retirement less tax.

19. Taxation on Retirement
After deduction of tax free benefits the following rates apply

20. Early Withdrawal - Taxation
After deduction of tax free benefits the following rates apply

21. NATIONAL SOCIAL SECURITY ACT, 2013

22. Regulations Highlights
Reform of the NSSF has been on the Government agenda since 1997
Seeks to have the Old Provident Fund closed and two new Funds open i.e. New Pension Fund & New Provident Fund.
Both Employee and Employer will contribute 6% of pensionable earnings*
Mandatory contributions divided into Tiers I & II
Tier I contributions to be remitted to NSSF
Tier II contributions to be remitted to either NSSF or a contracted out Private Scheme.

23. The Contributions Interpretation…
Year
Lower Earning Limit(LEL)
Upper Earning Limit( UEL) 1
6,000
½ * National Average Earning 2
7,000
1 * National Average Earning 3
8,000
2 * National Average Earning 4
9,000
3 * National Average Earning
Year 5 onwards
Lower Earning Limit as provided in the Regulations 2 (a) of the Act
4 * National Average Earning

24. The Contributions Interpretation…
Year
Lower Earning Limit(LEL)
Upper Earning Limit( UEL) 1
6,000
18,000 2
7,000
36,000 3
8,000
72,000 4
9,000
108,000
Year 5 onwards
10,000
144,000

25. Illustrations

26. NSSF ACT 2013

27. The Contributions Interpretation…
Contracting out:
Opting to remit the Tier II contributions to an approved scheme; :
Scheme applies to be Contracted-out;
Employer applied to opt-out to an approved Scheme;
Approved Scheme must meet the reference Scheme Test:
Registered by both RBA and KRA;
Pension Scheme providing for pension and/or income drawdown;
Maintain an accurate record of the protected rights; and
Compliant to the Retirement Benefits Act and its Regulations

28. Illustrations 2014 2015 2016 2017 Lower Earnings Limit (LEL) 6,000
7,000
8,000
9,000
Upper Earnings Limit (UEP)
18,000
36,000
72,000
108,000
Tier I Salary
Tier II salary
12,000
29,000
64,000
96,000
Tier I Contributions
360
420
480
540
Tiert II Contributions
720
1,740
3,840
5,760
Total Contributions
1,080
2,160
4,320
6,300

29. Way Forward Sponsor to decide on approach:
Funding outside of the current arrangement; or
Funding within the current arrangement;
Review the payroll structure:
To provide for the contributions records;
Review Scheme Rules on contributions:
To provide for the contributions approach that is elected;
Britam ready for implementation:
Communicate the decisions to Britam for capture in the documentation.

30. NSSF vs. RBA Run Schemes
The NSSF Act allows employers with private retirement schemes to pay the Tier II & Excess contributions into such schemes:
What are the advantages of this?
Better returns
Better service
Guarantee on investments

31. Why Britam? A long heritage of financial strength and stability
World-wide presence
Strong investment team
Excellence in customer service and claims settlement
State-of-the-art technology
Wide product range and innovation
Approved and registered by IRA, CMA and RBA
Massive experience and capacity in handling major accounts

33. Presented by Farouq Fred Milimu