For small businesses, providing employees with a structured retirement plan can seem daunting due to costs and administrative complexities. Small and Medium-sized Enterprises (SMEs) often prioritize covering payroll and keeping operations running, especially when resources are limited. As a result, long-term employee benefits like retirement plans are frequently postponed. However, providing a structured retirement plan is not just about compliance, it is a strategic move that helps attract and retain top talent, strengthens employee loyalty, and enhances competitiveness in a rapidly changing job market.
The Cytonn Umbrella Retirement Benefits Scheme (CURBS) offers an ideal solution for SMEs looking to provide retirement benefits without the administrative burden of setting up an in-house pension scheme. By joining CURBS, businesses ensure their employees have access to a well-managed retirement plan, promoting financial security and long-term stability. One of the key features of CURBS is its ability to accept and manage NSSF Tier 2 contributions, allowing employers to contract out of the second tier of statutory NSSF deductions, redirecting those funds into a better-performing, professionally managed scheme.
Contributions under CURBS are typically shared between the employer and the employee, whereby employers can contribute 2.5% of the employee’s gross salary, while employees match that amount. This provides both parties with tax advantages while promoting a culture of joint responsibility for future financial wellbeing. The umbrella scheme model makes CURBS particularly appealing for small businesses. By pooling multiple employers under one scheme, costs are minimized, compliance is simplified, and governance is professionally handled by Cytonn Asset Managers. This significantly reduces administrative workload and regulatory concerns. Umbrella schemes provide cost-effective solutions for employers who want to support their employees’ future without incurring excessive setup costs.
Beyond affordability, CURBS also offers several advantages that make retirement planning attractive for small businesses. Employees gain tax advantages similar to those of occupational schemes, ensuring that contributions grow efficiently without excessive deductions. Employees also enjoy structured savings, life cover, and the option to build a post-retirement medical fund. The scheme provides attractive interest rates, allowing pension savings to grow over time through compounding, with declared returns of 18.8% in 2024.
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For businesses looking to foster employee loyalty, offering pension benefits through CURBS is a strategic move. A retirement plan signals long-term commitment, making employees feel valued and secure. In return, businesses benefit from improved workforce retention and motivation, creating a stable, productive work environment
