BRITAM

“ A diversified financial services group with primary interests in the Insurance, Asset Management, Banking and Property sectors”

Our Structure, Businesses and Strategic Alliances

British-American Insurance Company (Rwanda) Limited

British-American Insurance Company (Uganda) Limited

British-American Insurance Company (Kenya) Limited

100% 100%100%

British-American Insurance Company

(S.S) Limited

100%

Bramer Properties

100%

21.37%

10.63%

British-American

Asset Managers Limited

100%

Our Journey so far

5

“ 48 years of continuous growth and innovation, and we are geared for many more”

1965-1996• 1965 British-

American Insurance Company Ltd Bahamas established a branch in Kenya

• Incorporated in 1979(Kenya)

2004-2010• 2004 Holding

Company, Asset management & investment in Equity Bank

• 2007 investment in Housing Finance

• 2010 Britam Insurance Company (Uganda)

2011-2013…• 2011 Listing on the

NSE

• 2012 Britam Insurance Company (South Sudan)

• 2013 Britam Insurance Company (Rwanda)

• Strategic partnership with Acorn Group

• Acquiring 99.9% of Real Insurance Company with additional presence in Tanzania, Malawi and Mozambique

Our Brand, Vision, Mission and Values

YOUR Journey is OUR Journey

Vision“To be Your

most trusted financial Partner”

Values• Respect • Integrity• Continuous

improvement and innovation

• Passion

Operating Principals• Market

leadership• Professionalism• Synergy• Operational

Excellence

Personality• Visionary• Approachable

Mission“To provide outstanding

financial services to

our customers”

“ the cornerstone of our existence”

RETIREMENT PLANNING

What is Retirement planning?

Assessing Retirement Needs

Retirement Age

Main source of income

Lifestyle expenses

Risk that you are willing to take

Minimum return you expect to earn at

retirement

Current Kenyan Retirement planning culture

Benefits of Pension Savings

• Tax exemptions on contributions• Tax exemptions on retirement benefits:

Monthly pension income of up Ksh.600,000 is exempt from income tax.

• Professional management• Exclusion of retirement benefits from one’s

estate.

BRITAM INDIVIDUAL RETIREMENT PLAN

Britam Individual Pension Plan

Scheme is set up under the British American individual retirement plan.

- Individual Pension Plan (IPP) - Individual Provident Fund (IPF)

KCB are the corporate trustees of the scheme.

RETURN ON GUARANTEED FUNDS - 5%

• Assets are invested with the assets of other Schemes

• Return to the Members is guaranteed at 5% Plus a bonus rate every year

Company

2006 2007 2008 2009 2010 2011 2012 2013 8 yr Av

Britam 18.00 10.50

6.00 9.00 15.00 6.00 16.00 16.00 12.06%

Jubilee 12.75 12.00

8.01 8.20 12.75 6.50 12.75 14.00 10.87%

Pan Africa

12.50 10.00

10.00 10.00 12.5 2.00 12.50 10.00 9.94%

ICEA 9.00 9.25 8.10 8.15 11.50 7.50 12.00 12.00 9.68%

CFC 11.00 9.50 5.00 6.00 10.0 3.00 10.00 10.00 8.06%

Scheme Membership

Eligibility - No restrictions of membership to a scheme on basis of gender, race, religion or any other manner which is discriminatory

No withdrawal of benefits while still in active employment

A member cannot assign or borrow from the scheme (assignment may be allowed for the sole purpose of securing a mortgage loan)

Taxation Benefits

A member’s monthly contribution is tax deductible up-to Kshs. 20,000 per month (or Kshs. 240,000 per year)

Tax free withdrawal/retirement benefits of Kshs.60,000.00 per year of membership up-to a maximum of Kshs. 600,000/=

Tax exemption on the investment incomeNo tax is charged from age 65 years

Withdrawal BenefitsRetirement– Normal Retirement – on attaining the normal retirement

date as prescribed by the scheme.– Early retirement – after attaining 50 years– Late retirement – at any age after normal retirement age– Ill-health retirement – at any age subject to certification by

a qualified medical practitioner

Retirement Benefits• Full Balance of the member’s fund paid at retirement less

tax.

Taxation on Retirement

• After deduction of tax free benefits the following rates apply

Early Withdrawal - Taxation• After deduction of tax free benefits the following

rates apply

NATIONAL SOCIAL SECURITY ACT, 2013

Regulations Highlights• Reform of the NSSF has been on the Government

agenda since 1997• Seeks to have the Old Provident Fund closed and two

new Funds open i.e. New Pension Fund & New Provident Fund.

• Both Employee and Employer will contribute 6% of pensionable earnings*

• Mandatory contributions divided into Tiers I & II• Tier I contributions to be remitted to NSSF• Tier II contributions to be remitted to either NSSF or a

contracted out Private Scheme.

The Contributions Interpretation…

Year Lower Earning Limit(LEL)

Upper Earning Limit( UEL)

1 6,000 ½ * National Average Earning

2 7,000 1 * National Average Earning

3 8,000 2 * National Average Earning

4 9,000 3 * National Average Earning

Year 5 onwards

Lower Earning Limit as provided in the

Regulations 2 (a) of the Act

4 * National Average Earning

The Contributions Interpretation…

Year Lower Earning Limit(LEL)

Upper Earning Limit( UEL)

1 6,000 18,000

2 7,000 36,000

3 8,000 72,000

4 9,000 108,000

Year 5 onwards 10,000 144,000

Illustrations

NSSF ACT 2013

The Contributions Interpretation…Contracting out: Opting to remit the Tier II contributions to an approved scheme; :

Scheme applies to be Contracted-out; Employer applied to opt-out to an approved Scheme;

Approved Scheme must meet the reference Scheme Test: Registered by both RBA and KRA; Pension Scheme providing for pension and/or income

drawdown; Maintain an accurate record of the protected rights; and Compliant to the Retirement Benefits Act and its Regulations

Illustrations2014 2015 2016 2017

Lower Earnings Limit (LEL)

6,000 7,000 8,000 9,000

Upper Earnings Limit (UEP)

18,000 36,000 72,000 108,000

Tier I Salary 6,000 7,000 8,000 9,000

Tier II salary 12,000 29,000 64,000 96,000

Tier I Contributions 360 420 480 540

Tiert II Contributions 720 1,740 3,840 5,760

Total Contributions 1,080 2,160 4,320 6,300

Way ForwardSponsor to decide on approach:

Funding outside of the current arrangement; or Funding within the current arrangement;

Review the payroll structure: To provide for the contributions records;

Review Scheme Rules on contributions: To provide for the contributions approach that is elected;

Britam ready for implementation: Communicate the decisions to Britam for capture in the

documentation.

NSSF vs. RBA Run Schemes• The NSSF Act allows employers with private

retirement schemes to pay the Tier II & Excess contributions into such schemes:

• What are the advantages of this?• Better returns• Better service• Guarantee on investments

Why Britam?• A long heritage of financial strength and stability• World-wide presence• Strong investment team• Excellence in customer service and claims settlement• State-of-the-art technology• Wide product range and innovation• Approved and registered by IRA, CMA and RBA• Massive experience and capacity in handling major

accounts

Presented byFarouq Fred Milimu