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Opting out of NSSF Act 2013
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kiterunner
#11 Posted : Wednesday, January 15, 2014 5:49:07 PM
Rank: Member

Joined: 7/9/2011
Posts: 730
Location: Nairobi
winston wrote:
Contributions have been split into two - Tier 1 and Tier 2. Tier 1 MUST go to NSSF. You cant opt out.

Tier 2 can opt out of NSSF but only upon application to NSSF which will take a minimum of 60 days or so. Meaning at a minimum - Your Jan & Feb Tier 2 will also be invested with NSSF.

So if NSSF declines the opt out both your Tier 1 & Tier 2 will be with NSSF.

The law is an ass!



Thank you all for comments, does anyone know what proportion of the 12% is Tier 1 or Tier 2?

our goals are best achieved indirectly
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  | | Edit by user: Wednesday, January 15, 2014 6:46 PM | Reason: Not specified
KulaRaha
#12 Posted : Thursday, January 16, 2014 8:42:47 AM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
It seems NSSF is trending hard...everyone is scared for their money.
Business opportunities are like buses,there's always another one coming
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bird_man
#13 Posted : Thursday, January 16, 2014 8:58:45 AM
Rank: Veteran

Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
So help me,
If say I earn 50K a month....does it mean I'll "save" 12%*50K=6,000 per month?
That is:
(1)720sh Mandatory to NSSF
(2)5,280sh to NSSF or a Private Pension Scheme?

If true...isn't that quite some madness?
Formally employed people often live their employers' dream & forget about their own.
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2012
#14 Posted : Thursday, January 16, 2014 8:59:22 AM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
winston wrote:
Contributions have been split into two - Tier 1 and Tier 2. Tier 1 MUST go to NSSF. You cant opt out.

Tier 2 can opt out of NSSF but only upon application to NSSF which will take a minimum of 60 days or so. Meaning at a minimum - Your Jan & Feb Tier 2 will also be invested with NSSF.

So if NSSF declines the opt out both your Tier 1 & Tier 2 will be with NSSF.

The law is an ass!


Why would they allow you to opt out after applying yet they are the ones who stand to lose?

BBI will solve it :)
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muganda
#15 Posted : Thursday, January 16, 2014 9:06:13 AM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Quite helpful this Deloitte's analysis of the NSSF Act 2013. http://ow.ly/sDoFD

But 25 pages long Sad
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  | | Edit by user: Thursday, January 16, 2014 9:07 AM | Reason: Not specified
willin2learn
#16 Posted : Thursday, January 16, 2014 1:10:57 PM
Rank: Veteran

Joined: 2/12/2008
Posts: 1,178
wilyum wrote:
winston wrote:
Contributions have been split into two - Tier 1 and Tier 2. Tier 1 MUST go to NSSF. You cant opt out.

Tier 2 can opt out of NSSF but only upon application to NSSF which will take a minimum of 60 days or so. Meaning at a minimum - Your Jan & Feb Tier 2 will also be invested with NSSF.

So if NSSF declines the opt out both your Tier 1 & Tier 2 will be with NSSF.

The law is an ass!



what percentage?


So you apply to NSSF to leave NSSF??? With all the interest they have with your money!!!
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seppuku
#17 Posted : Thursday, January 16, 2014 2:12:55 PM
Rank: Veteran

Joined: 5/11/2010
Posts: 918
winston wrote:
Contributions have been split into two - Tier 1 and Tier 2. Tier 1 MUST go to NSSF. You cant opt out.

Tier 2 can opt out of NSSF but only upon application to NSSF which will take a minimum of 60 days or so. Meaning at a minimum - Your Jan & Feb Tier 2 will also be invested with NSSF.

So if NSSF declines the opt out both your Tier 1 & Tier 2 will be with NSSF.

The law is an ass!


From the document linked to by Muganda further up:

Quote:
• where approval is received, Tier II contributions already made to the Fund shall be transferred from the Pension Fund to the
approved contracted out scheme.
Learn first to treat your time as you would your money, then treat your money as you do your time.
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thuks
#18 Posted : Friday, January 17, 2014 9:35:32 PM
Rank: Veteran

Joined: 10/8/2008
Posts: 1,575
2012 wrote:
winston wrote:
Contributions have been split into two - Tier 1 and Tier 2. Tier 1 MUST go to NSSF. You cant opt out.

Tier 2 can opt out of NSSF but only upon application to NSSF which will take a minimum of 60 days or so. Meaning at a minimum - Your Jan & Feb Tier 2 will also be invested with NSSF.

So if NSSF declines the opt out both your Tier 1 & Tier 2 will be with NSSF.

The law is an ass!


Why would they allow you to opt out after applying yet they are the ones who stand to lose?


It's the employer who can apply not the contributor according to my understanding...
I care!
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Angelica _ann
#19 Posted : Sunday, January 19, 2014 6:53:44 PM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
Sample calculations are on their website. Anybody earning 18K & above will pay a flat rate of 2,160 per month for both tiers. No soo bad!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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nakujua
#20 Posted : Sunday, January 19, 2014 9:05:51 PM
Rank: Elder

Joined: 12/17/2009
Posts: 3,583
Location: Kenya
do we have any retiree on wazua who is enjoying the payouts by NSSF, would love to know how they pay after retirement.
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