What are the IPF rates?
Customer are advised to negotiate directly with the banks.
Where can we collect the IPF forms?
IPF forms are collected from CIC or from the relevant banks.
Where is my cheque?
Customers will be contacted when the cheque is ready. However:
For service providers other than those relating to claims.
A customer may check out the progress directly with contact person who was responsible for negotiating the business transaction or through the procurement department Tel 2823251
Claims Settlement
A customer may check out the progress directly with the claim department. Tel 2823230
Where is my W44 certficate?
The W44 certficates for the current year will be printed and sent to the customers by 15th of January of the following year.
A customer may check with the fiinance department ( Tel 2823289) if the certificate is not received on time.
What banks do have IPF arrangement with?
NIC Bank. Tel: (020)2888000 Contact: ASSET FINANCE SECTION
Co-op Bank. Tel: (020)3276000 Contact: ASSET FINANCE SECTION
CFC STANBIC. Tel: (020)3638566
OTHERS INCLUDE: Diamond Trust, Giro Bank,CBA, KCB, National Bank
How long does it take for a Group Life claim to be paid?
All claims relating to loan balances and employee benefits( EGL) are paid within 7 working days.
All claims relating to the Last Expense only, are paid within 48 hours.
What are the requirements for lodging a Group Life claim?
- Duly completed,signed and stamped claim form
- Proof of death i.e original (and a certified copy of ) death certificate OR physicians statement on disability for disability cases.
- Original loan application form(s) for the loan(s) outstanding
- Member's accounting statements covering the period of the loan(s) since grant date upto time of demise.
- Copy of the ID.
- Last payslip if the member was employed
Who gets paid in case of a Group life claim?
All cheques are raised to the respective Saccos or institutions.CIC does not make payments directly to the beneficiaries of Group life policies.
Who certifies the death certificates?
Death certificates can be certified in any of our offices countrywide.The can also be certified by legal persons who are mandated by law to do so.
What is the minimum number of members in a group?
10 for Group life products, 50 for Microinsurance
Can i insure my family for the health cover if i dont belong to a group?
No. CIC does not currently offer individual medical products
Can i insure my parents for the medical cover?
Yes. As long as you are already pare of a group insured with us for the same cover.
What are the limits for the microhealth cover?
There is no limit in terms of sum assured but one can only be hospitalised for a maximum of six continous months.
What are accredited hospitals?
These are the hospitals that give services for the purpose of this cover. CIC will not be liable for any claims from a hospital that is not accredited.
Does CIC give loans like other microfinance organisations?
No! CIC insures loans given by microfinance institutions.
How can i become a member of CIC?
You cannot become a member of CIC but you can be a shareholder through your sacco society.
Who is Eligible to Join The Scheme?
You are eligible to join the Scheme if you are aged between 18 – 74 years, either formally of self employed.
When Do I Join?
Upon filling the appropriate forms and on trustees approval, one is allowed to join the scheme immediately.
Am I Also a Memeber Of N.S.S.F?
If you are in formal employment, Yes. If you are in self employment, membership to N.S.S.F is not mandatory but very important.
NB; Your Membership of the National Social Security Fund is in no way affected by being a member of CIC Pension Plan.
Is My Membership Affected By Temporary Absence From Work?
Your membership to the Scheme is not affected by your temporary absence from work and if employed, your employer will continue to contribute on your behalf. A temporary absence means a period not exceeding nine months provided the employer approves the absence of leave eg certified sickness.
What Do I Contribute To The Scheme?
i) If employed, there's an option to contribute % of your basic salary into the scheme.
ii) If in self employment, there's an option of contributing a flat figure towards your kitty.
Jipange is fairly flexible. Monthly contributions should be atleast Kes 500/- with no upper limit subject to income tax laws.
How Are The Contributions Invested?
i) Contributions are invested by African Alliance, the plan's Fund Manager in a segregated fund. However, the investing is done in accordance with the investment guidelines as per the Retirement Benefits Act. Interest rates on investments are declared annually, based on the fund performance, which is credited to the accumulated contributions.
ii) Any contributions in excess of the tax allowable contribution, currently Kshs. 20,000 per month will be invested in the same way as the usual contributions but the income from those contributions will be subject to tax at corporate rate.
What Are My Benefits On Retirement?
On attainment of your normal retirement age, the accumulated amount from your contributions including any Additional Voluntary Contributions and the Employer's contributions(if employed) plus interest earned thereon will be used to purchase a pension (also known as an Annuity) from an insurance company of repute to be chosen at your discretion. The pension will be paid to you on a regular basis through your bank account as advised by you. This pension will be payable for life.
Can I Take Part Of My Retirement Benefit In Cash?
(a) Yes. You may "commute" an amount not exceeding one third of your pension into cash, which you will receive as a lump sum payment. If the pension is trivial you may apply for payment in lump sum.
(b) The balance will be paid to you as a pension i.e. monthly, quarterly, semi annually or annually as opted by you.
(c) It is important to note that the amounts in excess of the statutory tax-free limits will be subject to income tax deduction.
Can I Retire Before The Normal Retirement Age?
Yes. You can retire at any time after attaining the age of fifty (50) years and receive the full benefit payable subject to employer's approval ( if employed)
i.e. one third as cash and two thirds in the form of a pension.
You may also retire on medical grounds upon the advice of a medical practitioner acceptable to the employer.
What Happens If I Leave The Company Before The Normal Retirement Age?
If you leave service before the normal retirement age e.g. following voluntary resignation, you may select one of the following three options: -
a) With the prior written consent of the Commissioner of Income Tax and the Retirement Benefits Authority, you may transfer your benefits to a Scheme of a new Employer or your Individual Pension Plan. You will need to formally request the Trust Secretary to write to the two statutory authorities for the consent
b) Defer taking your benefits. No further contributions will be made, and you will be entitled to the contributions and interest earned payable at the Normal Retirement Date. Amounts left in the scheme will attract interest at the same rate as declared for other members. In this case you will not be able to contribute any further towards the Scheme and your life assurance cover ceases from the date you leave the service of the employer. You will get a certificate indicating the benefits held by the Insurance Company and the years remaining to retirement.
c) You may elect to receive a return of contributions, i.e.;
- You may elect to receive a return of your own contributions plus interest thereon.
- You will be entitled to a refund of the employer's contributions plus interest in accordance with the following vesting scale:-
| Years of Pensionable Service With the Employer | Entitlement to Benefits secured by the | |
|---|
| | Employer's Contributions | Employee's Contributions | | Less than 1 year | Nil | 100% | | More than 1 year | 100% | 100% |
|
Your entitlement to the benefit of any part of the Employer's contributions will be retained in the scheme until you attain the Normal Retirement Age (the only exceptions being where you are leaving service as a result of ill health, incapacitation or are emigrating without present intention of returning to reside in Kenya ).
What Happens If I Die Before The Normal Retirement Age?
i) A lump sum of the total amount of your own and the employer's contributions with accrued interest thereon will also be paid to your nominated beneficiary(s).
ii) In this case the vesting scale will still apply.
Can I Nominate My Beneficiary(s)?
(a) You may nominate one or more beneficiary(s) who can either be your dependants /relatives or any other person that you may wish to nominate, by completing the "nomination of Beneficiary" form at any time. However, in your own interest this form should be completed as early as possible.
(b)The nomination will ensure that payment can be made to your dependants promptly. The nomination will not be binding on the Trustees but they will pay particular attention to your wishes. They may also be directed by a written will or be guided by the letters of administration.
(c)You may change your nomination at any time in writing by completing a fresh nomination form. This form may be obtained from the Trust Secretary.
What Is The Tax Position?
a) C
ontributions
Subject to limits set by the Income Tax Authorities, contributions up to a given limit (currently standing at Kshs 20,000 per month) are tax deductible and investment income is tax-free. Amounts in excess of the statutory limits are not tax deductible and the investment income is subject to the applicable Corporate Tax rates.
b)
Benefits
Any lump sum payment from the Scheme by way of a withdrawal benefit or a retirement benefit is tax free at the current rate (2007) of Kshs.48,000. p.a for each year of membership of the scheme subject to a maximum of Kshs.480,000. Excess is subject to Income Tax deductions.
c) Pension
Currently an annual pension of up to a maximum of KShs. 240,000/- or a monthly pension of up to KShs.20, 000/- is tax-free. Any amounts in excess of this will be subject to tax under the normal PAYE conditions.
These figures can change during budget days.
Can I Pledge My Benefits As Security For A Loan Or Any Other Debt?
As per now, benefits cannot be used as security of any sort. However subject to enactment of the Retirement Benefits Amendment Bill (2007), you may in future be allowed to use your benefits in the scheme as security in securing mortgage loans with RBA approved institutions.
However, the funds used as security will not be allowed to exceed ¾ of the total fund value.
What Is The Role Of Retirement Benefits Authority (R.B.A)?
The role of the R.B.A. is to: -
a) Regulate and supervise the establishment and management of the Retirement Schemes.
b) Protect the interest of the members and sponsors of Retirement Schemes.
c) Promote the development of the Retirement Benefits Sector.
d) Advise the Minister for Finance on the national policy to be followed with regard to the Retirement Benefits Sector.
If I Have Queries Who Do I Refer To?
You can address any questions to the Trust Secretary who together with the Administrator will respond to them.
How Do I Know How The Scheme Is Performing?
The trustees will hold an annual general meeting to which all members will be invited. Prior to the annual general meeting audited annual accounts will be issued to the trustees and members will be issued with their annual statements showing the contributions and interest accrued thereon.
What Are The Trustees Responsibilities?
The Trustees are responsible for ensuring that all monies in connection with the scheme are handled in accordance with the trust deed and rules. Each Trustee is legally, severally and jointly charged with ensuring compliance of the Scheme.
Trustees are both member nominated and sponsor appointed for a renewable term of three years. After the term (or on retirement or on leaving company service) new Trustees will be appointed to office –
The current Trustees of the Scheme are: -
- Peter Mwaura - Chairman
- D. K. Rono
- Albert Wambugu
- Mutua Makaa
- Jane Njoroge
- Mary Noel Wanga – Trust Secretary
Who Are The Scheme Main Service Providers?
Delloite & Touche – Auditors who audit the scheme's books of account.
African Alliance - Fund Managers advise on the investment of the scheme funds
Kenya Commercial Bank – Custodians to hold all the monies and any other scheme assets.
CIC Insurance Company - The appointed administrator of the Pension Plan
