FKE has failed the workers on this one.
If this is really about retirement benefits then workers should be left to determine a fund that offers the best returns regulated and licensed by RBA. NSSF return on investment is ridiculous while they run the biggest fund. Now that doesn't make an iota of sense. Corruption is the in thing here and I know the aim if for the collected money to be used to offer cheap loans to the government. Very sad.

The application is supposed to be done by the employer to the retirement benefit authority(RBA) and not to NSSF.RBA is supposed to respond within 30 days from the date the application is received.

Just cut your beer intake per month and you will be fine....

C+P

Africa Alliance Comment on the NSSF Act 2013!

THE NATIONAL SOCIAL SECURITY FUND ACT, 2013
Purpose of Pension: To provide retirement income security for the remaining life of the plan member. (Simplified further: To eliminate the risk that the pensioner outlives his/her resources)
The previous NSSF Act of Parliament has failed to meet the above mentioned purpose as retirees outlive their resources. The Act was established in 1965 as a provident fund that pays pensioners a lump sum upon attainment of the retirement age. Contributions to the fund were capped at KES 400, with both employer and employee paying KES 200 monthly. Over the years high inflation, as expected in developing countries, and governance issue at the institution, have eroded these contribution leaving retirees with insufficient and inadequate resources at retirement. This coupled by modernization that has seen a breakdown in our African tradition that ensured elder members were cared for as the foundation of the society, has influenced the formulation of the NSSF Act 2013.
The NSSF Act 2013, proposes to establish a pension fund for employed person (all members of old provident fund) and a provident fund for those making voluntary contributions. The current provident funds would be closed and the assets ring fenced allowing for it to be administered separately. The contributions will be 12% of pensionable earning with both employer and employee contributing 6%.
The Act breaks down contributions into Tier I and Tier II contributions. Tier I, mandatory payment to NSSF, will consist of contribution at 12% of pensionable earning up to the lower earnings limit (average statutory minimum monthly wage). Tier II will consist of the difference between the lower earning limits and the upper earning limits, four times the national average earnings. For employers who operate a retirement pension scheme will be allowed to opt out of remitting the funds to NSSF and invest Tier II contributions into the scheme. The implementation of the Act is to be done progressively over a span of 5 years.
Transition from the old Act to the new Act will require employers that currently have a scheme to review contribution % to 6% if lower, provident schemes to be converted into pension schemes, amend trust deeds and rules and apply for approval from to RBA to opt out from remitting Tier II funds to NSSF.
It is our view that the Act is constructive to the pension industry; ensuring pensioners have sufficient and adequate resources at retirement, increasing number of people with pensions in the country and raising the assets under management. The big question remains is the newly branded NSSF ready for the challenge?