For Savings and Credit Cooperative Organizations (SACCOs), providing robust Retirement and Pension Schemes for their members and employees is a cornerstone of long-term financial security and a powerful differentiator in the competitive financial landscape. These schemes go beyond basic savings, offering a structured and disciplined approach to accumulating funds that will provide a stable income stream during retirement, mitigating the risk of old-age poverty and enhancing overall member welfare. By facilitating access to well-managed pension programs, SACCOs reinforce their commitment to the holistic financial well-being of their community, extending their value proposition beyond credit and savings to encompass life-stage financial planning. Effective management of these schemes requires a deep understanding of actuarial principles, investment strategies, regulatory compliance, and transparent administration, ensuring that promises made today can be reliably met in the future. Without thoughtfully designing and competently managing Retirement and Pension Schemes for SACCOs, these vital institutions risk failing to meet a critical member need, losing out on a significant opportunity for member loyalty, and potentially undermining their long-term sustainability by neglecting a key aspect of comprehensive financial service provision.

Duration: 5 Days

Target Audience

• SACCO Board Members
• Human Resources Managers
• Finance Managers
• Investment Committee Members
• Supervisory Committee Members
• Legal and Compliance Officers
• SACCO Managers and CEOs
• Member Services Professionals
• Trustees of existing SACCO pension schemes
• Consultants advising SACCOs on retirement benefits

Objectives

• Understand the strategic importance and benefits of retirement and pension schemes for SACCOs and their members.
• Learn about different types of retirement benefits schemes and their characteristics.
• Acquire skills in designing and structuring suitable pension schemes for a SACCO.
• Comprehend techniques for effective investment management of pension funds.
• Explore strategies for ensuring regulatory compliance and sound governance of pension schemes.
• Understand the importance of risk management specific to retirement benefits.
• Gain insights into administration best practices and transparent reporting to members.
• Develop a practical understanding of member education and retirement planning support.

Course Content

Module 1: Introduction to Retirement Benefits and Pension Schemes

• The importance of retirement planning in financial well-being.
• Defining retirement benefits schemes, pensions, and provident funds.
• The role of SACCOs in providing retirement solutions to members and employees.
• Benefits of organized retirement schemes: tax advantages, compounded growth, security.
• Global trends and the cooperative movement's approach to pensions.

Module 2: Types and Structures of Retirement Schemes

• Defined Contribution (DC) vs. Defined Benefit (DB) schemes: features, risks, and suitability for SACCOs.
• Individual Retirement Schemes (IRS) and Umbrella Schemes.
• Occupational schemes and their application within SACCOs.
• Hybrid schemes and their design considerations.
• Case studies of successful cooperative pension models.

Module 3: Designing and Setting Up a SACCO Pension Scheme

• Needs assessment: understanding member demographics and financial capacity.
• Key design parameters: contribution rates, vesting periods, benefit payout options.
• Legal and regulatory requirements for scheme establishment.
• Roles of trustees, fund managers, custodians, and scheme administrators.
• Developing a scheme rules document and trust deed.

Module 4: Governance and Administration of Pension Schemes

• Principles of good governance for pension scheme trustees.
• Fiduciary duties and responsibilities of trustees.
• Establishing robust internal controls for scheme administration.
• Record-keeping best practices and data management.
• Member registration, contribution processing, and benefit payment procedures.

Module 5: Investment Management of Pension Funds

• Principles of prudent investment for long-term retirement savings.
• Asset allocation strategies for pension funds: balancing risk and return.
• Different asset classes suitable for pension investments (equities, fixed income, real estate).
• Performance measurement and benchmarking of pension fund investments.
• Engaging and monitoring fund managers and investment advisors.

Module 6: Risk Management in Retirement Schemes

• Identifying and assessing key risks in pension schemes: investment risk, longevity risk, inflation risk.
• Operational risks in administration and governance.
• Funding risks in Defined Benefit schemes.
• Strategies for mitigating pension scheme risks.
• The role of stress testing and scenario analysis.

Module 7: Regulatory Compliance and Reporting

• Overview of relevant legislation and regulations governing retirement benefits.
• Compliance requirements for scheme registration, ongoing operations, and reporting.
• Regulatory reporting obligations to supervisory authorities.
• Penalties for non-compliance.
• Adapting to evolving regulatory landscapes.

Module 8: Member Education, Communication, and Retirement Planning

• Strategies for educating members about the importance of retirement planning.
• Effective communication of scheme benefits, statements, and policy changes.
• Financial literacy programs focused on long-term savings and investment.
• Pre-retirement counselling and post-retirement support.
• Leveraging technology for member engagement and access to pension information.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.