Understanding the Scheme
How It Works
Contribution Flow
Your Money's Journey
Member
10%Sponsor (MUT)
20%Member Account
30% TotalAt Retirement
1/3 Cash + 2/3 Annuity/DrawdownThree Factors That Determine Your Benefits
Your Contribution Level
Including additional voluntary contributions (AVCs) — no upper limit.
Sponsor Contributions
20% of your pensionable salary allocated to your account monthly.
Investment Returns
Returns credited to your account based on scheme investment performance.
Annuity vs Income Drawdown
| Feature | Annuity | Income Drawdown |
|---|---|---|
| Payment | Perpetual/lifetime fixed payments | Up to 12% p.a. of balance |
| Flexibility | Fixed amount | Member chooses amount |
| Duration | Lifetime | 10-year contract (renewable) |
| After Death | Guaranteed period applies | Balance paid to beneficiaries |
Tax Benefits
- Up to Ksh 30,000/month or 30% of pensionable emoluments (whichever lower) is tax deductible
- Contributions deducted before tax — automatic relief
- Exempt account: no income tax on returns
Interest on Member Account
- Based on annual scheme performance
- Exempt account: no income tax
- Non-exempt account: 30% tax rate
- Mid-year leavers: receive differential interest