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.
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.
