A pool for cost cutting and sharing
The Enwealth Umbrella Fund is an arrangement whereby many employers decide to participate in a guaranteed/segregated fund arrangement together as a pool for cost cutting/sharing.
Enwealth Umbrella Fund
Enwealth Umbrella Retirement Benefits Scheme is an umbrella pension scheme designed for employers who wish to ride on an already existing retirement fund. The scheme is approved by the Retirement Benefits Authority (Kenya) to receive NSSF Tier II contributions, with a wide range of benefits to both employers and employees.
- Approved by the RBA (Kenya) to receive NSSF Tier II contributions
- No start-up costs for the employer or the employees
- A guaranteed or a segregated investment option
About the Fund
What is Enwealth Umbrella Fund
NSSF Tier II
The enactment of the NSSF Act 2013 in Kenya sought to revise the monthly contributions by both employer and employee from KES 400 to a 12% deduction operated in the Tier I and Tier II system. The law has been effective since 2023, after several litigations and suspension by the court in 2014.
Fund administration services
In accordance with the provisions of the RBA Act, the Fund governance structure provides for separation of roles in custody, investments, day-to-day administrative roles, book keeping and records management. The appointed service providers of the Scheme under the Fund are: Corporate Trustee, Custodians, Administrator and Segregated Fund Managers.
Investment policy
The funds are invested in accordance with the investment policy statement that is prepared by an independent financial advisor and reviewed every 3 years.
Segregated or guaranteed
A participating employer in the Enwealth Umbrella Fund can choose between the option of investing in the segregated fund or a guaranteed fund. The guaranteed investment option guarantees capital protection plus a minimum investment return of at least 4% per annum. Under the guaranteed investment option, returns declared every year will be based on market performance and cannot go below the minimum guaranteed rate of 4%.
An independent Corporate Trustee
The scheme has an appointed Corporate Trustee who is independent from Enwealth Financial Services Ltd and watches over the operations of the scheme on behalf of the members.
Benefits of Enwealth Umbrella Fund
Economies of scale
Members are able to benefit from economies of scale so that costs have a reduced impact on returns declared to members.
Effective diversification
The ability to diversify more effectively. Evidence shows that a large well-diversified investment portfolio outperforms smaller, less diversified portfolios.
Investment choice
We allow participating employers investment choice. Employers can choose between a guaranteed investment return or the segregated investment structure.
Fully outsourced management
The management of all aspects of the fund is outsourced. Therefore, the employer does not need to be involved in complex governance, trusteeship, investment, custody and administration.
Savings towards a mortgage
Members can use up to 60% of their accrued savings for the purpose of securing a mortgage.
Our Umbrella Fund value added services
Group Life Insurance cover
Enhanced benefits which include a Group Life Insurance cover of KES 500,000 payable to dependants upon the demise of a member, at no additional cost to the employer or members.
Member education
Member Education Services from the Enwealth Training Team, covering personal financial management, pre-retirement training and change management among others.
Online portal
Secure web-based access for individual members to their scheme data, including Nominated Beneficiaries, contributions history, benefits projections and benefits statements.
Innovative products
Access to the Anaya Post-Retirement Healthcare Fund, Kesho Hela Income Drawdown Fund, pension backed mortgages and affordable housing solutions.
Joining is simple, convenient and has no start-up costs
- 1
The employer signs
The employer signs a Deed of Adherence undertaking to abide by the rules of the Fund.
- 2
Members join
Members individually complete and sign Joining Forms and Nomination of Beneficiary Forms, providing Enwealth with the member particulars.
- 3
Accounts are opened
We open individual accounts for each member, allowing members to view their contribution history and balances through our online portal and the Enwealth Mobile App.
FAQs
Frequently Asked Questions
Tier I and Tier II contributions are those set by the NSSF Act 2013 in Kenya.
Ask us something elseCan I join as an individual?
The umbrella fund is a solution for employers as a benefit to the employees, hence a member cannot join as an individual but under the cover of the employer. This means that when an employee leaves the services of a participating employer, they cease to be members.
What do I benefit as an individual?
Benefits to secure your retirement income; member educational sessions that cover financial wellbeing; access to other innovative products, e.g. Kesho Hela IDD and Anaya PRMS; tech efficiency that improves customer experience through the mobile app; and a group life benefit that covers the nominated beneficiaries in case of the member's demise.
What are Tier I contributions?
Tier I contributions are monthly contributions in respect of Pensionable Earnings up to the Lower Earnings Limit, that are done directly to NSSF.
What are Tier II contributions?
Tier II contributions are contributions that are over and above the normal contributions that are done to NSSF. This is how much money can go into your existing pension fund.
What is the Lower Earnings Limit?
This is the amount gazetted by the Cabinet Secretary from time to time as the average statutory minimum monthly basic wage for the top urban centres, second tier urban centres and rural areas for the year.
How much will Tier II contributions cost?
Tier II contributions are the bulk of your statutory contribution. It costs 6% of your salary and is phased over a 5-year period.
How are Tier II contributions calculated?
Tier II contributions are based on your earnings between the lower earnings limit and the upper earnings limit.
What is the deadline for making monthly Tier II contributions?
The deadline for making contributions is the 10th day of every month.
Is there a penalty for delayed contribution?
Yes, there is a penalty for delayed contribution. If you delay your contribution you will be denied the opportunity to get better benefits.
What is a contracted-out scheme?
It is an occupational retirement benefits scheme, including an umbrella retirement benefits scheme or an individual retirement benefit scheme, which has been approved and registered by the Retirement Benefits Authority for purposes of receiving Tier II Contributions and, where applicable, Tier II Fund Credit transfers.
Get in touch
Talk to us
Tell us what you need and the right team will come back to you.
- +254 20 278 8000
- +254 788 617 443
- umbrellaadmin@enwealth.co.ke
- Enwealth Business Centre, Ngong Lane, Ngong Road, Nairobi, Kenya
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