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Opting out of NSSF Act 2013
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kiterunner
#1 Posted : Wednesday, January 15, 2014 11:57:09 AM
Rank: Member


Joined: 7/9/2011
Posts: 730
Location: Nairobi
I have just received the following in an email:
Would those that are more informed please comment on this plan for opting out of the new NSSF mandatory deductions

Thank you


As you may be aware, the NSSF ACT 2013, which repeals the old NSSF ACT (cap 258), is only awaiting the commencement date and the attendant transition regulations to be effective.
For purposes of avoiding to miss out on the closure of the transition window, we strongly recommend that if you are not a member of a private pension scheme, to kindly complete the attached Zimele Personal Pension Plan (ZPPP) form to ensure automatic "opt out" once the Act comes into effect.
Opting out implies that your Tier II contributions will go to a registered individual pension scheme, such as the ZPPP. Failure to do so means ALL of your contributions will go to the NSSF after the commencement of the Act.
our goals are best achieved indirectly
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McReggae
#2 Posted : Wednesday, January 15, 2014 12:01:03 PM
Rank: Elder


Joined: 6/17/2008
Posts: 23,365
Location: Nairobi
@kiterunner, they are simply telling you to register with a private pension plan, otherwise you will automatically have to join NSSF!!!
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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KulaRaha
#3 Posted : Wednesday, January 15, 2014 12:03:51 PM
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Joined: 7/26/2007
Posts: 6,514
I will also opt out. Waste of my money to be honest. I am tired of thieves.
Business opportunities are like buses,there's always another one coming
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poundfoolish
#4 Posted : Wednesday, January 15, 2014 12:15:26 PM
Rank: Elder


Joined: 12/2/2009
Posts: 2,458
Location: Nairobi
So guys
It's as esy as signing up to another pension plan and i am off feeding the GoK corruption train?

Why do i also have a feeling the private pension plans had something to do with this bill. BRITAM Aiming 60bob in 3years
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King G
#5 Posted : Wednesday, January 15, 2014 12:20:14 PM
Rank: Elder


Joined: 6/20/2012
Posts: 3,855
Location: Othumo
KulaRaha wrote:
I will also opt out. Waste of my money to be honest. I am tired of thieves.


Where will you go!!!!!
Thieves
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KulaRaha
#6 Posted : Wednesday, January 15, 2014 12:22:55 PM
Rank: Elder


Joined: 7/26/2007
Posts: 6,514
King G wrote:
KulaRaha wrote:
I will also opt out. Waste of my money to be honest. I am tired of thieves.


Where will you go!!!!!


I will try some private pension...no way NSSF is eating my money anymore.
Business opportunities are like buses,there's always another one coming
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winston
#7 Posted : Wednesday, January 15, 2014 2:19:10 PM
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Joined: 4/14/2010
Posts: 806
Location: Nairobi
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!
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KulaRaha
#8 Posted : Wednesday, January 15, 2014 2:42:31 PM
Rank: Elder


Joined: 7/26/2007
Posts: 6,514
How can NSSF decline the opt out when its my money and not theirs?

Someone needs to go to court and stop this nonsense!!
Business opportunities are like buses,there's always another one coming
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wilyum
#9 Posted : Wednesday, January 15, 2014 3:27:40 PM
Rank: Veteran


Joined: 12/21/2011
Posts: 1,010
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?
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karodhy
#10 Posted : Wednesday, January 15, 2014 5:01:47 PM
Rank: Hello


Joined: 1/15/2014
Posts: 1
Under the NSSF Act 2013, the Pension Contributions are a total of 12% of a person’s pensionable earnings divided as follows:-
>Employer's contributions of 6%
>Employee's contributions of 6%
Which are then divided into two categories;
>Tier I contributions : All are to be remitted to NSSF
>Tier II contributions:which can be remitted to NSSF or to a registered private pension scheme of which one is a valid member by the commencement date of the Act.
I recommend that you contact Zimele for a detailed and clear break down of the implications of NSSF Act.
I got this information from their facebook page
http://www.facebook.com/...t-Kenya/184973231528694
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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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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
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Joined: 9/15/2006
Posts: 3,905
Quite helpful this Deloitte's analysis of the NSSF Act 2013. http://ow.ly/sDoFD

But 25 pages long Sad
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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: 11,908
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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