The Scheme commenced in the year 2002 under the instruction and leadership of Rev. Bishop Elkana Salamba. During inception a lot teething problems were encountered and a number of people offered to give a hand here and there;
1. The late Rev Kiplimo
2. Mr. Isaya Kipsang
3. Rev. Peter Ondieki
4. Rev. Nathan Ondego
Rev. Ondego became the advisor of the scheme at inception, sourcing information from the Regulator the would be service providers and the members on how best the scheme would be established. When all had been done the Scheme was registered in 2006 and Rev. Ondego became the Administrator in 2008.
WHAT IS A PROVIDENT FUND?
A provident fund is an investment fund that is jointly established by the employer and employee to serve as a long term savings to support an employee when he/she finally retires from employment. At inception the employer should do so squarely with the welfare of the employee at heart. The employer should support the scheme and remain as a watchdog towards the Administration of that scheme.
It is the duty of an employer to establish a Provident Fund and thereafter transfer the management to Trustees who should carry out that management in fiduciary basis.
Sources of money invested in the provident fund:
1. An amount will be deducted from the employee's monthly salary. (For PAG Scheme) a Pastor will surrender 5% of his/her wages.
2. The Assembly where the Pastor serves will contribute another 5% and give to the Pastor as the employer's contribution towards the retirement saving of the Pastor.
3. The Pastor will then carry both his/her contribution have it written down in a Mhutasari and pass it over to his/her respective District overseer for onward transmission to the PAG Head quarter.
4. The PAG HQ will then compile a list of all Pastors in the Country and make one Cheque of all the contributors payable to the Scheme. Once this is done the contributors saving becomes safe.
However due to unavoidable circumstances and due to the loss that has been registered at the PAG Headquarters level, the Scheme advised members topay Direct to the scheme so that their contribution would be invested and made secure till retirement. In this regard the procedure is;
1. The Pastor receives his salary from his respective Assembly. He then deducts from himself a 5% of his salary and hands it back to the Assembly Treasurer.
2. The Assembly Treasure from the assembly tithe deducts an amount equivalent to the Pastors 5% and adds the 5% remitted by the Pastor and both becomes 10% of the Pastors salary. This 10% calculates to the Pastors Retirement saving.
3. The Pastor then takes the 10% to the District overseer property itemized as Provident Fund (PF)
4. The District overseer then banks the Pastors saving of 10% direct into the Scheme account held by a Bank recognized by Retirement Benefit Authority.
At this juncture the Pastors savings is safe till retirement. The long journey through the PAG Executive proved fatal to the member.
Money placed in a provident fund will be managed by an investment management company which will invest that money in various securities to maximize the financial returns.
The fund is a unique legal entity which is fully separated from the employer and the investment management company. It is important for members to note that if the employer becomes financially insolvent, the fund's entire assets continue to belong to the employees or provident fund members and not affected by any liabilities the employer may have.
Returns
The Scheme fund shall at all time be invested in accordance to the RBA act, the regulation and the Trust Deed and the return from such investment is the property of the members who must see such extra returns through a yearly statement.
Let each one of the Members of PAG Save and save correctly for a better tomorrow.
Rev. Nathan
Administrator.