PENSION…..Pesa ya uzeeni
Ever switched jobs?
What the Solution to this?
- One, you have the upper hand in the administration & Management of your Pension fund.
- Second, you hold a Pension document as opposed to a group Pension plan that your employer (or former employer) holds it on your behalf.
- Your Family can walk to your pension scheme providers with the document and process the benefits without any hustle.
- You receive annual pension statement directly to your email. No need to contact your former employer to send it to you.
- You have the freedom to transfer the funds to any insurance company of your choice.
Group Pension Plan
A group pension scheme refers to the process of an employer receiving regular contributions from their employees’ wages which are entrusted to a pension provider to invest up until the time when the employee retires and can access the money they saved during their time with a firm. Employees can make further contributions should they so wish and this again creates a mutually beneficial situation where both the employee and the firm can improve their tax efficiency. The pension fund builds up using the firm’s contributions, any contributions your employees make, investment returns and tax relief.
Group Pension benefits for your Firm
- Promote the company’s image as a good employer – Offering a group pension plan shows employees that you care about their current and future welfare and are willing to assist them.
- Enable the recruitment and retention of high-quality employees – The current volatility of global economics has increased the importance of personal savings to people. Offering and contributing to a pension scheme is therefore an extremely enticing benefit to any high caliber employee.
- The financial benefits – Employer pension scheme contributions are tax-deductible meaning that a firm can simultaneously reduce its operating costs whilst improving employee morale. On top of this, employees can also reclaim their personal contributions, however, there may be a limit depending upon the firm’s native legal system.
- Enhance employee performance – A group pension plan can effectively provide an incentive by showing employees that the firm values their input and has recruited them for a long term career and not just a job. This is likely to increase employee commitment and thus improve organizational performance.
Personal Pension Plan
Personal Pension Plan is a long-term investment that aims to help you build up a pot of money that you can use for your retirement.
Who Can Join The Plan? Employed individuals and their employers, self-employed individuals and SMEs/groups.
Who Contributes To The Plan? You: contribute a fixed percentage/amount from your monthly salary through your salary deduction if you are employed or a regular amount if you are self-employed If you are employed, your employer contributes a fixed percentage/amount of your monthly salary.
What Happens If You Leave Your Job Or Move Jobs? 100% of your contributions plus accrued interest is paid to you in cash (less applicable taxes)
Your employer’s contributions is locked till you reach age 50 and in the meantime, you can choose to either:
Leave it in the scheme and it shall earn income as usual or;
Move it the retirement scheme of your new employer or;
Move it to an individual retirement benefits plan with an insurance company of your choice
What Happens If You Die? 100% of your contributions plus accrued interest is paid to your nominated beneficiary immediately (less applicable taxes)
100% of your employer’s contributions plus accrued interest is paid to your nominated beneficiary immediately (less applicable taxes)
What Happens If You Become Incapacitated Whilst Working Or After Leaving Work Or Retire On Grounds Of Ill-Health? 100% of your contributions plus accrued interest is paid to you (less applicable taxes)
100% of your employer’s contributions plus accrued interest is paid to you (less applicable taxes)
What Happens If You Wish To Retire Early? By law, the earliest you can retire is at age 50.
You can take 1/3rd of the Total Retirement Fund as cash (less applicable taxes)
The remaining 2/3rd of your Total Retirement Fund is converted into a fixed monthly pension which shall be paid to you at the end of every month till you die.
What Happens When You Retire? You can take 1/3rd of the Total Retirement Fund as cash (less applicable taxes)
The remaining 2/3rd of your Total Retirement Fund is converted into a fixed monthly pension which shall be paid to you at the end of every month till you die.
Jubilee Insurance Personal Pension Plan Personal Pension Plan Write up (FAQs)
A corporate pension plan is a benefit that provides income in retirement based on the employee’s length of service to the company and salary history.
