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Why are members are encouraged to contribute more than 10% for higher benefits?


These payments are known as Additional Voluntary Contributions (AVCs) and are a tax efficient way of providing extra retirement income. Members can start paying AVCs on joining the Scheme or at any other time.


Currently the law allows members a tax-free amount of up to KShs 20,000 per month on their normal contributions and any additional voluntary contributions. Any contributions above KShs 20,000 are tax deductible.


Additional voluntary contributions together with the accrued interest are payable in full to a member upon retirement or when they leave service. [i.e. AVCs are not subject to the requirement of “1/3rd lumpsum and 2/3rd”].


Members wishing to make Additional Voluntary Contributions (AVCs) can instruct the Finance Officer in writing, stating the amount they wish deducted from their salary, giving a copy of the letter to the Scheme Administrator.