GROUP DEPOSIT ADMINISTRATION
Deposit Administration Scheme is an investment vehicle adopted by employers of labour for the management and administration of their employees’ out-of-service benefits or to augment their statutory benefits.
It is also used to encourage improvident staff to save additionally towards retirement and in such an instance, the scheme could be set up by employees and funded only by them. Associations may use this arrangement as savings for their members.
- An agreed percentage of the salary is deducted at source and remitted to Capital Express Assurance Limited on behalf of the employee on monthly basis or an agreed frequency or date, with a schedule showing the names and amount of contributions.
- The contributions are credited into an account called the policyholder’s account on behalf of the employees
- The scheme fund is administered by Capital Express Assurance Limited and an agreed interest rate which is guaranteed would be credited into policyholder’s account.
- A global statement of account of the fund is generated quarterly while an individual statement of account is generated annually.
- There is free entry and free exit from the scheme
- At the period of exit, the policyholder receives the total amount (both contributions and interest) credited into his account as a lump sum.
- At exit of an employee, the cheque (benefit due to such employee) is issued in the name of the employer who in turn pay the exited employee
- The scheme fund enjoys economies of scale resulting from Capital Express Assurance pool of funds
- Capital Express Assurance enjoys varied professional expertise which will be involved in the administration of the scheme fund.