About Personal Pension Plans

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 Forms The Scheme?

GA Life Assurance Limited has established the scheme, under an irrevocable trust, duly registered by the Retirement Benefits Authority and Kenya Revenue Authority.

Who Can Join The Plan?

Employed individuals and their employers, self-employed individuals and SMEs/groups.

How Do You Join The Plan?

By completing a simple application form

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.

Any Tax benefits?

Your monthly salary is not subjected to PAYE for the amount you contribute (up to a maximum of KShs. 20,000 Per month) into the Plan.

 Simple Example:

Your monthly salary: KShs. 50,000 Your monthly contribution to the scheme: KShs. 5,000 Amount subject to PAYE: KShs. 45,000

Any Employer tax benefits?

Your employer is allowed to treat his contributions towards the Plan as a tax allowable expense in his books of accounts.

Do The Contributions To The Plan Earn Any Income?

Yes. The contributions are invested in accordance with Section 50 of the Insurance Act and start earning income from the day the contributions are received by GA Life.

Are The Contributions And Income Arising From It Guaranteed?

Yes for both. The contributions have a 100% capital guarantee as they are invested in a guaranteed fund issued by GA Life. The income arising out of investing the contributions is also guaranteed, by GA Life, for a minimum return of 4%.

How Do You Know How Much Your Employer And You Have Contributed To The Plan And What Income Has It Earned??

By every 10th of every month, GA Life will send to you your monthly fund value statement showing your fund status at the end of the previous month. At the end of every year, GA Life will send a statement to you clearly reflecting the contributions made by you and your employer and the investment income earned on these respective contributions.

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:

1. Leave it in the scheme and it shall earn income as usual or;
2. Move it the retirement scheme of your new employer or;
3. 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.

If You Are A Member Of Another Occupational Or Individual Retirement Benefits Scheme, can you Transfer Your Balance There To This Scheme?

Yes.