What is a Pension Fund Manager?
A financial institution licensed by the Retirement Benefits Authority (RBA) to manage a portfolio of investments as a private pension fund in accordance with the stated goals of the fund. Dry Associates is licensed as a Pension Fund Manager by the RBA.
What is the role of the Fund Manager?
To implement an investment strategy that reflects the goals and objectives of a fund. The manager ensures that the funds under management are invested in accordance with the investment strategy. The portfolio is monitored continually for performance. In preparing the investment policy and funding the portfolio, the manager does so in consultation with the Fund Trustees and is guided by the RBA asset class limits.
Why establish a Pension Fund?
From the Employer’s perspective, a company pension helps attract and retain superior employees. A company with a pension plan has a competitive advantage over a company without one. From the Employee’s perspective, a periodic savings plan provides a tax advantaged, systematic way to accumulate wealth. Employee contributions, often matched by employer contributions, are tax exempt and accumulate tax free over the years. It is one of the surest ways to provide for a financially secure future.
What will Dry Associates do?
- Establishing a Retirement Benefit Plan
Dry Associates will assist the client, following a resolution to set up a retirement benefit plan, to develop a Trust Deed and Trust Rules that will form the basis of an agreement between the client and the Trustees of the plan. Dry Associates will further assist the client to come up with the plan’s design and benefit structure based on the client’s needs and requirements.
- Registration of a Retirement Benefit Plan
Dry Associates will guide the client in the implementation of the pension or provident fund to be in compliance with the RBA and the Kenya Revenue Authority (KRA). A pension plan provides for a future periodic payout while a provident fund pays out a lump sum. Registration with the RBA and the KRA must be sought prior to the commencement of the plan in order to take advantage of tax exemptions.
- Management of a Retirement Benefit Plan
Dry Associates will ensure that the investments of the retirement benefit plan conform to the requirements of the RBA Act and earn a return in accordance with the pension's objectives.
|
