Additional Voluntary Contributions (AVC)

A member can make additional voluntary contributions. The portion of your salary that you contribute to the scheme is normally deducted from your salary before taxation. There however exists a limit to the amount that is tax-free. Presently the limit on contributions is Ksh 20,000 but this is reviewed periodically by the government.

The table below shows the advantages of AVC. For the same salary, Member A makes no Pension Contributions. Member B makes only the mandatory contributions. Member C makes the mandatory and AVC contributions.

A

B

C

Basic Salary

50,000.00

50,000.00

50,000.00

Other Allowances

17,000.00

17,000.00

17,000.00

Gross Pay

67,000.00

67,000.00

67,000.00

NSSF

200

200

200

Pension Contribution (Mandatory)

-

2,500.00

2,500.00

AVC (Member to Determine)

-

-

2,500.00

Total Pension contribution

200

2,700.00

5,200.00

Taxable Amount

66,800.00

64,300.00

61,800.00

Salary

13,972.40

13,222.40

12,472.40

Other Deductions (NHIF, Sacco Loans etc)

5,000.00

5,000.00

5,000.00

Net Salary

47,827.60

46,077.60

44,327.60

Reduction in Net Salary

-

1,750.00

3,500.00

Actual Savings in RBS

-

2,500.00

5,000.00

Benefit to Employee

750

1,500.00

Core Values

Integrity
Accountability
Courtesy
Efficiency
Stewardship

Latest News

fire awards 2016

The Fund participated for the third time in the Investment Awards 2016 organized by Think Business Ltd.

During the Award Presentation Ceremony held on Friday 28th October 2016 at the Windsor Golf & Country Club, the DC Fund bagged 2 Trophies (1st runners up in the Not for Profit category and 2nd runners up in the IFRS category) and the DB Fund b

The Fund participated for the fifth time in the Champion of Governance (COG) Awards 2016. The Fund was recognised during the award ceremony held on 4th November 2016 at the Intercontinental Hotel in the following categories;