Sharp Daily
No Result
View All Result
Friday, May 30, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Pensions

Why CURBS & CPRBS suit NSSF tier II contributions

Faith Ndunda by Faith Ndunda
May 7, 2025
in Pensions
Reading Time: 2 mins read

Maximizing your retirement savings is an essential financial decision, and choosing the right scheme to manage contributions can significantly impact your future security. The Cytonn Umbrella Retirement Benefits Scheme (CURBS) and the Cytonn Personal Retirement Benefits Scheme (CPRBS) are segregated retirement benefits schemes, both approved by the Retirement Benefits Authority (RBA) to accept and manage NSSF Tier II contributions, providing contributors with an opportunity to optimize their savings while benefiting from structured pension solutions.

To understand the significance of this approval, it’s essential to grasp what NSSF Tier II contributions are. Under the National Social Security Fund (NSSF) Act 2013, Kenya introduced a two-tier contribution system. Tier 1 are mandatory contributions deducted from employees’ salaries and directly remitted to NSSF. Tier II contributions apply to employees earning above a certain threshold. Employers are allowed to contract out of the NSSF Tier II portion by channeling it into an alternative registered scheme, such as CURBS and CPRBS. This alternative ensures contributors receive higher returns, better fund management, and personalized investment strategies tailored to their financial needs.

As of February 2025, Kenya entered the third phase of implementing the NSSF Act 2013, which introduced enhanced contribution rates under the two-tier system. Tier I applies to pensionable earnings of up to KES 8,000.0, with both employer and employee contributing 6.0% each (KES 480.0 each), which brings the total Tier I contributions to KES 960.0. Tier II covers earnings up to KES 72,000.0, and contributions are 6.0% of the difference between the upper and lower limits (KES 72,000.0 – KES 8,000.0 = KES 64,000.0), resulting in KES 3,840.0 each from the employer and employee. This brings the total maximum Tier II contributions to KES 7,680.0 per month.

Choosing CURBS and CPRBS for Tier 2 contributions offers significant advantages. Both schemes provide structured, well-governed pension plans, ensuring that savings grow efficiently and securely. In 2024, CPRBS and CURBS declared impressive returns of 27.7% and 18.8% respectively, underscoring their strong investment portfolio and commitment to generating above-market returns. CURBS, designed for employer-based pension contributions, offers employers an opportunity to support their employees’ financial well-being.

RELATEDPOSTS

How CURBS supports employers and employees

May 30, 2025

Whether you are self-employed, part of an SME, or managing a larger workforce, these schemes provide a solution to retirement planning. They are especially attractive for employers seeking to maximize retirement benefits for their staff while fulfilling statutory obligations efficiently. By directing NSSF Tier 2 contributions into CURBS or CPRBS, individuals and employers can enhance their pension savings, benefit from better fund management, and secure a financially stable future. Making the right retirement decision today ensures peace of mind and financial security for the years ahead.

Previous Post

Inter Milan vs. Barcelona – A Champions League classic

Next Post

President Ruto’s economic failures root of rage

Faith Ndunda

Faith Ndunda

Related Posts

Pensions

How CURBS supports employers and employees

May 30, 2025
Pensions

Holistic retirement planning with CURBS and CPRBS

May 28, 2025
Pensions

Boost employee retention and save on costs with CURBS

May 21, 2025
Pensions

Plan ahead with the Cytonn Umbrella Retirement Benefits Scheme.

May 15, 2025
Pensions

Retirement planning for non-salaried workers with CPRBS

May 14, 2025
Pensions

Leveraging personal pensions for retirement beyond NSSF

April 30, 2025

LATEST STORIES

Tap on Kenya’s 2025 tech revolution

May 30, 2025

How CURBS supports employers and employees

May 30, 2025

NSE deserves more attention from young investors

May 29, 2025

The silent strain of remote work on Kenya’s urban workforce

May 29, 2025

How Kenya’s crypto bill could reshape the digital economy

May 29, 2025

Phone use vs productivity: Finding balance

May 28, 2025

Holistic retirement planning with CURBS and CPRBS

May 28, 2025

Foreign influence in Kenya’s credit crisis

May 28, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024