Individual Pension Plan

slider3 buts stopsIndividual Pension Plan

  • It is registered by both the Retirement Benefits Authority and the Kenya Revenue Authority
  • It is a savings plan that provides financial protection in old age.
  • It can be started by self employed, business people, small employers, or members transferring from employer sponsored group schemes.
  • The maximum allowed contribution into a registered Individual Pension plan is 30% of the monthly salary or Kshs 17,500/= per Month.
  • The maximum tax-deductible amount on contributions into a registered IPP is Kshs. 17,500 or Kshs. 210,000 per year.
  • The employer can contribute on behalf of the employee as long as the combined contributions do not exceed 30% of the employee’s salary.
  • Upon leaving employment an employee can continue contributing into the IPP.
  • In the event of death payment of the accumulated fund is made to the named beneficiaries.
  • The pension funds are invested in guaranteed fund and secure instruments to ensure that the returns are reasonably high and stable.

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