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Product Overview
Takaful Umbrella Fund is the first Shariah-compliant retirement benefits scheme in East and Central Africa. It is a retirement benefits fund that pools together retirement benefits for small, medium or large organizations and institutions with a purpose of coming up with a practical, cost-effective, Shariah-compliant and professionally managed retirement benefits scheme for the members. This allows the participating employers to focus on their core business.
Benefits to Employers
Shariah Compliant
The Trustees of the scheme have established an investment policy that ensures that the scheme invests in acceptable ways that adhere to Shariah Principles of Commercial Transactions while enabling the employers and employees to save towards retirement.
Cost Effective
Costs for operating the Fund will be shared among participating employers therefore making the Fund operationally cost efficient.
Enhanced Governance
The Fund is managed by professional and competent Trustees at an affordable cost.
Easy to set up
Setting up and managing the routine activities of the Fund will be the least of the employer’s concern giving him/her ample time to concentrate on his/her core business.
Employee Loyalty
Setting up a retirement fund for and on behalf of your employees is partnering up to assist them to save towards their retirement. This is likely to promote hard work and loyalty. The absence of an established scheme makes an employer less attractive rendering the company incapable of attracting a talented workforce.
No penalties on withdrawal
No penalties will be incurred should an employee decide to withdraw from the fund however a notice period of 30 days will be required to facilitate processing of the benefits.
Tax relief
Contributions remitted to the Fund are tax allowable up to Kshs 20,000 per month per member. Further, on accessing your benefits, you are allowed a tax-free lump sum of Kshs 60,000 for
every year of Scheme membership subject to a maximum of Kshs 600,000.
Benefits to Employees
Transparency – meetings & updates
The Fund will be managed by professionals hence employer interference on matters of the Fund will be on check and in consultation with the assigned professionals.
Tax Relief
Contributions remitted to the Fund are tax deductible up to Kshs 20,000 per month per member.
Maximum joining age is 65 years
Membership Eligibility
To join the Fund the Employer needs to ensure that:
- The organization is registered by the State Law Office & the Kenya Revenue Authority
- They sign a Deed of Adherence
- They are engaged in a business or trade that provide goods and services that are in line with Islamic Principles
- Membership is compulsory for eligible employees
Employees need to ensure that they are:
- Permanent & pensionable
- Above age 1 8 and below retirement age
Contributions
The Fund operates as a Defined Contributions (DC) Scheme with the employee contributing a percentage of his/her basic salary into the fund and the employer adding onto it with an equal, less than or higher percentage.
Contributions will be remitted to the custodian via a Standing Order, Debit Order, Electronic Funds Transfer (EFT), Cash Deposit or Cheque by the 10th day of the following month to which the contributions relate.
NOTE: All contribution payments should be addressed to the
Custodian
Benefits Payment
Member benefits can be claimed under any of the following
circumstances:
- Early retirement or on normal or late retirement age
- If a member resigns, is terminated or retrenched from the employer’s service
- On permanent emigration to another country with no intention of coming back to Kenya
- If a member dies while still a member of the Scheme
- Medical Retirement if a member suffers from a long-term medical condition and cannot carry out the duties in line with his/her job.
