The Cytonn Umbrella Retirement Benefits Scheme (CURBS) offers an ideal solution for organizations that lack an occupational retirement scheme or the resources to start one. It allows employees to build a secure financial future through consistent savings while enabling employers to provide a valuable benefit that supports staff retention and motivation. As a Defined Contribution scheme, CURBS ensures that both employer and employee contribute a fixed percentage towards the employee’s retirement savings, which accumulate over time and are payable upon retirement, exit, or death.
Enrolling in CURBS is a straightforward process. The employer begins by passing a resolution to join the scheme and signs a Deed of Adherence. Employees then complete an application form and submit necessary identification documents. Cytonn Asset Managers Ltd, the fund manager, provides full support throughout the joining process to ensure a smooth transition. Once enrolled, employees and employers contribute a minimum of 2.5% of the employee’s salary, with the option for employees to make additional voluntary contributions without any cap. These contributions enjoy significant tax advantages, allowing up to Kshs 30,000 monthly to be contributed tax-free.
Members of CURBS benefit from more than just savings. The scheme offers a free life cover of up to Kshs 5.0 million, depending on the member’s accumulated contributions. This life cover also includes payouts for permanent disability, critical illness, and last expense, offering peace of mind to members and their families. Additionally, CURBS allows members to use up to 60.0% of their retirement savings to secure a mortgage, and up to 60.0% to purchase a residential home, making it easier to achieve home ownership.
CURBS investments are professionally managed and guided by an Investment Policy Statement aligned with the Retirement Benefits Authority (RBA) regulations. While returns are not guaranteed due to market fluctuations, the scheme is structured as a segregated fund, which historically offers better long-term returns compared to guaranteed schemes. The scheme declared returns of 18.8% for the financial year ended December 2024. Members receive annual statements and annual interest updates following audits, ensuring transparency and accountability.
In the event of death, the member’s nominated beneficiaries receive both the savings and the life cover payout, ensuring that loved ones are financially supported. Overall, CURBS stands out as a well-governed, flexible, and tax-efficient retirement benefits solution for both employers and employees. It not only facilitates long-term financial planning but also supports home ownership, healthcare, and family welfare, making it a comprehensive and attractive retirement option
