The Retirement Benefits Authority (RBA) has published a reminder notice to Trustees, scheme administrators and other service providers of retirement benefits schemes.
The notice dated February 5 is about filing of scheme accounts and payment of the retirement benefits levy.
RBA directed the announcement to schemes whose financial year ended on December 31, 2023.
Accordingly, RBA Section 34(4) of the Retirement Benefits Act, 1997 requires every scheme to submit to the Authority audited financial statements within three (3) months after the end of the financial year.
Besides, the Authority said penalties apply for failure to submit audited accounts within the prescribed timelines as provided under Section 34 (4) (4c) of the Act.
“In this regard, schemes whose financial year ended on 31 December 2023 should submit their financial statements by 31 March 2024 and pay the requisite levy by 30 April 2024,” read the notice.
RBA Compliance
RBA also quoted Section 16 of the Act, Regulation 39 of the Retirement Benefits (Occupational Retirement Benefits Sc Regulations 2000; Regulation 52 of the Retirement Benefits (Individual Retirement Benefits Schermi Regulations 2000 and Regulation 46 of the Retirement Benefits (Umbrella Retirement Benefits Sc Regulations 2017.
The above Regulations and Acts require each scheme to submit to the Authority the Retirement Benefits Levy within four months after the end of financial year.
The Authority explained that any default in the payment of the levy attracts a penalty of 5 per month on any amount outstanding.
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How to Pay
RBA emphasized that all payments must be made online through the RBA Returns Portal via the e-Citizen account.
“For all payments, please provide the scheme details including the e scheme registration number, scheme name and amount of levy paid to the Authority through the email address levy@rba.go.ke,” read the notice.
Retirement Levy
The retirement benefits levy is imposed under Section 16 of the Act and is payable as per the rates prescribed under Regulations forms and fees.
This levy helps support the administration and regulation of retirement benefit schemes in Kenya.
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RBA annual levy are as follows:
1.Up to 500 million Kenyan Shillings: 0.2%.
2.More than 500 million but not exceeding 1,000 million Kenyan Shillings: 0.15%.
3.More than 1,000 million but not exceeding 5,000 million Kenyan Shillings: 0.1%.
4.More than 5,000 million Kenyan Shillings: 0.05%.
There are five different schemes under RBA including Defined Contribution and Defined Benefit, Provident Fund and Pension Fund, Occupational Scheme and Individual Scheme, Umbrella Scheme and the National Social Security Fund (NSSF).
