Co-optrust Investment Provident Fund (CIPF)
This is a super-scheme where all small to medium-sized retirement benefits schemes that cannot be established on a stand-alone basis because of increasing costs come together under a single corporate scheme and share costs of its management.
Currently any scheme being formed on an independent basis is required to contract the services of a fund manager, a custodian, an administrator, and an auditor.
These tend to be too expensive for small schemes hence the need to team up with other similar scheme and share these services.
The Co-optrust Retirement Benefits Scheme has been designed to include a single corporate trustee, a single manager, a single custodian, a single auditor and a single Administrator. As a result of this the scheme is managed on a cost-sharing basis for all services provided. This minimizes the amount each scheme is required to pay and enhances their returns.
Benefit of joining CIPF
Who is eligible?
- Reduced costs to the respective scheme as all services are co-shared in the pool on a pro rata basis.
- Improved returns to the scheme given that the funds are pooled hence enjoy the economies of scale;
- Ability to put in place a form of long term savings;
- Contributors to the scheme will enjoy a tax relief on their contributions
- Reduced burden on the trustees as the scheme will be managed by a corporate trustee.
- Employee and Employer contributions towards the scheme are tax deductible, subject to the applicable limits.
- The investment income under the Umbrella Retirement Fund is exempt from withholding tax in full. Funds therefore grow faster.
- Optional additional Benefits: members of the CIPF can opt to purchase Group Life & Last Expense Insurance Cover.
- Any Employer with a minimum of 1 Employees
- Self-employed Professionals such as Doctors, Lawyers and Architects etc
- Self-employed businessmen/women and Jua Kali Artisans;
- Individuals whose employers have no formal retirement benefits schemes;
- Kenyans living abroad.
CIPF is registered by the Retirement Benefits Authority and the Kenya Revenue Authority
- Employer to complete application form to join CIPF
- Complete a deed of adherence.
- Complete a Nomination on Beneficiary Form
- Provide records of employees (Date of Birth,Contribution Schedule etc)