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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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kerich wrote:I understand that the discussion is about personal pension plan.
Nonetheless, I would like to be brought upto speed on what the law says in regard to employers role in employees pension scheme.
Is it mandatory by law for private sector employers to put their staff on a pension scheme over and above the monthly NSSF provident contribution of Ksh 200?
In this case whatever amount the employee contributes, the employer also contributes similar amount towards the employees pension.
Or is the employer at liberty not to get involved in any way over the employees pension arrangements private or otherwise?
Someone please shed some light.
No. The only requirement is the minimum set by NSSF Most private companies have no pension
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Boris Boyka wrote:Lolest! wrote:whiteowl wrote:Everybody should be the architect of his/her own pension plan. Thinking that someone other than ourselves has a great pension plan template for us and all we have to do is fit in is a grave mistake. Pension is not an investment! Put a low amount aside like 5% then invest the rest wherever you want When you are doing it yourself (personal), the two terms (investment & pension) are NOT mutually exclusive  . would you want your pension fund somewhere not to gain anything? Isn't putting money somewhere to gain an "investment"? however small it may be  The misuse of emoticons aside, yes, those two are mutually exclusive If we regarded it as an investment, we would rush to higher yielding ventures and dump this moderate yield option which is why governments give tax relief for it!
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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Lolest! wrote:Boris Boyka wrote:Lolest! wrote:whiteowl wrote:Everybody should be the architect of his/her own pension plan. Thinking that someone other than ourselves has a great pension plan template for us and all we have to do is fit in is a grave mistake. Pension is not an investment! Put a low amount aside like 5% then invest the rest wherever you want When you are doing it yourself (personal), the two terms (investment & pension) are NOT mutually exclusive . would you want your pension fund somewhere not to gain anything? Isn't putting money somewhere to gain an "investment"? however small it may be The misuse of emoticons aside, yes, those two are mutually exclusive If we regarded it as an investment, we would rush to higher yielding ventures and dump this moderate yield option which is why governments give tax relief for it! Among definitions of "invest" are: 1.To commit money or capital in the hope of financial gain. 2. To spend money, time,or energy into something, especially for some benefit or purpose. Amount of gains are not specified but we have little/low,.moderate/average & high/super gains; you have talked of moderate. From what i know high returns ventures are highly risky and you may loose your capital and the reverse is true. That is the reason gvt insists such funds (pension) being critical MUST not be lost.....tax releifs are "compensations" on restricted business. I normally use the terms bad, fair & good when refering to an investment. * shame on you hujui the def of invest the emoji are okay...you should have asked my interpretations. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Boris Boyka wrote:Lolest! wrote:Boris Boyka wrote:Lolest! wrote:whiteowl wrote:Everybody should be the architect of his/her own pension plan. Thinking that someone other than ourselves has a great pension plan template for us and all we have to do is fit in is a grave mistake. Pension is not an investment! Put a low amount aside like 5% then invest the rest wherever you want When you are doing it yourself (personal), the two terms (investment & pension) are NOT mutually exclusive . would you want your pension fund somewhere not to gain anything? Isn't putting money somewhere to gain an "investment"? however small it may be The misuse of emoticons aside, yes, those two are mutually exclusive If we regarded it as an investment, we would rush to higher yielding ventures and dump this moderate yield option which is why governments give tax relief for it! Among definitions of "invest" are: 1.To commit money or capital in the hope of financial gain. 2. To spend money, time,or energy into something, especially for some benefit or purpose. Amount of gains are not specified but we have little/low,.moderate/average & high/super gains; you have talked of moderate. From what i know high returns ventures are highly risky and you may loose your capital and the reverse is true. That is the reason gvt insists such funds (pension) being critical MUST not be lost.....tax releifs are "compensations" on restricted business. I normally use the terms bad, fair & good when refering to an investment. * shame on you hujui the def of invest the emoji are okay...you should have asked my interpretations. the purpose is not to gain financially, or grow the amounts Just to create a 'defence' as you have other ventures that attack, etc So, away from semantics and emoticon issues, you also think having a pension is not good?
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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Away from that. Pension is very important and i believe that all kenyans should have it regardless of whether in public,private and self employment. Am not sure of legislations governing such. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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http://www.rba.go.ke/ would be a good place to start. I have a query: There's a citizen who has recently retired at 60. His employer tells him that according to the laws (?) he will only be paid a third of his benefits as cash with the other two thirds being transferred to a provider of his choice who will the pay him an annuity. How true and/or legal is that? Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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Rankaz13 wrote:http://www.rba.go.ke/ would be a good place to start.
I have a query: There's a citizen who has recently retired at 60. His employer tells him that according to the laws (?) he will only be paid a third of his benefits as cash with the other two thirds being transferred to a provider of his choice who will the pay him an annuity. How true and/or legal is that?
yeah that's how the pension works the amount is transferred to insurance company to purchase an annuity which is like a salary every month till you kick the bucket. A provident fund on the other hand pays you lumpsum which is what NSSF used to do before it converted. If you want to be paid lump sum you have to transfer to a provident fund before you retire
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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mkonomtupu wrote:Rankaz13 wrote:http://www.rba.go.ke/ would be a good place to start.
I have a query: There's a citizen who has recently retired at 60. His employer tells him that according to the laws (?) he will only be paid a third of his benefits as cash with the other two thirds being transferred to a provider of his choice who will the pay him an annuity. How true and/or legal is that?
yeah that's how the pension works the amount is transferred to insurance company to purchase an annuity which is like a salary every month till you kick the bucket. A provident fund on the other hand pays you lumpsum which is what NSSF used to do before it converted. If you want to be paid lump sum you have to transfer to a provident fund before you retire Aha, thank you mblo.  Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Can someone help me with the yearly performance regarding PPP's at Jubilee,ICEA Lion,Britam and Alexander Forbes(If they offer it) for the years 2016,2017?
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Rank: Member Joined: 10/26/2008 Posts: 380
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Chaka wrote:Can someone help me with the yearly performance regarding PPP's at Jubilee,ICEA Lion,Britam and Alexander Forbes(If they offer it) for the years 2016,2017? Jubilee returns: Year 2004 - 9.5% 2005 - 10.5% 2006 - 12.75% 2007 - 12% 2008 - 8% 2009 - 8.2% 2010 - 12.75% 2011 - 6.5% 2012 - 12.75% 2013 - 14% 2014 - 12% 2015 - 8.3% 2016 <not sure> 2017 - 12% Britam: 2012 - 16% 2013 - 16% 2014 - 16% 2015 - 8% 2016 - 8.5%
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Rank: Member Joined: 1/30/2011 Posts: 207
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Chaka wrote:Can someone help me with the yearly performance regarding PPP's at Jubilee,ICEA Lion,Britam and Alexander Forbes(If they offer it) for the years 2016,2017? For AForbes and ICEA Lion they always give below 10% regardless... Circa 5% ndo zao...
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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According to another Jubilee write-up I have seen the return for 2016 was 9%,For 2010 and 2012 it shows 12.8% i/o 12.75% Mkimwa wrote:Chaka wrote:Can someone help me with the yearly performance regarding PPP's at Jubilee,ICEA Lion,Britam and Alexander Forbes(If they offer it) for the years 2016,2017? Jubilee returns: Year 2004 - 9.5% 2005 - 10.5% 2006 - 12.75% 2007 - 12% 2008 - 8% 2009 - 8.2% 2010 - 12.75% 2011 - 6.5% 2012 - 12.75% 2013 - 14% 2014 - 12% 2015 - 8.3% 2016 <not sure> 2017 - 12% Britam: 2012 - 16% 2013 - 16% 2014 - 16% 2015 - 8% 2016 - 8.5%
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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Wororo wrote:Chaka wrote:Can someone help me with the yearly performance regarding PPP's at Jubilee,ICEA Lion,Britam and Alexander Forbes(If they offer it) for the years 2016,2017? For AForbes and ICEA Lion they always give below 10% regardless... Circa 5% ndo zao... Stay away from Aforbes. They are now calling themselves zamara. 2017 they did 10%. Previously, 1%.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Hi fellow wazuans,
For guys here having a PPP(preferably the provident fund) in any of the providers in KE,I need to know the performance for 2018 and whether the interest is worked using simple interest or compound interest?I have a PPP with ICEA Lion and they returned 9% for 2018 and the interest is compounded once per period(not compounded daily)..which I don't exactly like..
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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Chaka wrote:Hi fellow wazuans,
For guys here having a PPP(preferably the provident fund) in any of the providers in KE,I need to know the performance for 2018 and whether the interest is worked using simple interest or compound interest?I have a PPP with ICEA Lion and they returned 9% for 2018 and the interest is compounded once per period(not compounded daily)..which I don't exactly like.. Britam - 6%.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Ok thanks,do they use simple or compound interest? FRM2011 wrote:
Britam - 6%.
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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Chaka wrote:Ok thanks,do they use simple or compound interest? FRM2011 wrote:
Britam - 6%.
That is the simple rate for 2018. Incidentally, today was the AGM and I passed by. Missed the early presentations but was present during the question/answer session. The 6% for Britam is the lowest in the last 10 years. From the tough questions from the members, the investment manager had to concede it was very low and the outlook for 2019 will no doubt be much better. Maybe double-digit. I have also realized we shall start reaping the benefits of an educated population. The kind of questioning from ordinary members made me proud. You can't dare show up for such a meeting unprepared. Which means pension scheme managers don't have a choice but to get better and better. I noticed the same with Mhasibu AGMs.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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FRM2011 wrote:Chaka wrote:Ok thanks,do they use simple or compound interest? FRM2011 wrote:
Britam - 6%.
That is the simple rate for 2018. Incidentally, today was the AGM and I passed by. Missed the early presentations but was present during the question/answer session. The 6% for Britam is the lowest in the last 10 years. From the tough questions from the members, the investment manager had to concede it was very low and the outlook for 2019 will no doubt be much better. Maybe double-digit. I have also realized we shall start reaping the benefits of an educated population. The kind of questioning from ordinary members made me proud. You can't dare show up for such a meeting unprepared. Which means pension scheme managers don't have a choice but to get better and better. I noticed the same with Mhasibu AGMs. I was to attend Britam too but couldn't make it. A friend of mine shifted to ICEA due to low returns, maybe I should follow him
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Rank: New-farer Joined: 11/9/2011 Posts: 30
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Wazuan's
Please advise. Is it advisable to invest my pension in Money Market Fund?
My fund manager has given me proposal to invest my monthly accumulative funds into Money Market Fund.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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kelly04 wrote:Wazuan's
Please advise. Is it advisable to invest my pension in Money Market Fund?
My fund manager has given me proposal to invest my monthly accumulative funds into Money Market Fund. The problem here is that those funds are easily accessible and you might be tempted to use them..
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