A Defined Contribution Scheme is an employer-sponsored retirement plan whereby Individual accounts are set up for employees and benefits are based on the amounts credited to these accounts (through employer contributions and employee contributions) plus any investment earnings on the money in the account.
Lump sum or monthly Pension benefits are payable on:
Contributions are made by both employee and employer based on Pensionable salary (basic salary plus house allowance). The rates of contribution are as per below guidelines:-
Participating organization have the flexibility to choose their contribution rates within the RBA guidelines.
Organizations who are sponsors to the scheme enjoy the following accrued benefits
These benefits are available for the members under both the Defined Benefits and Defined Contribution Schemes. They include;
No Harambee Benefit (Last Respect Benefit)
Ksh.100, 000 paid within 48 hours of formal communication of the death by sponsor. The aim is to assist the family of a bereaved member in giving their beloved a respectable send off.
Daraja Benefit (Unemployment Benefit)
This is a unique benefit and one of its kind in Kenya. CPF members (excluding Civic Leaders) are assured of 50% of six-month salary paid to cushion the member against the effects of sudden loss of income; provided that, the loss is not occasioned by indiscipline on the part of the member.
CPF Financial Services