NSSF BILL 2012
In May 2012 ARBS Council obtained a copy of a Bill informally called the NSSF Transformation Bill. The basic aims of the draft Bill were twofold:
To transform NSSF’s retirement benefits provision from a lump sum Provident Fund into a Pension Fund.
To increase the value of the NSSF retirement benefits by increasing the combined employer and employee contributions from Kshs400 per month to a total; of 12% of employee salaries.
To increase the coverage of NSSF to provide retirement pensions for all persons employed in the formal sector (compulsory) and lump sum benefits for persons in the informal sector (voluntary).
ARBS has been in the forefront in reviewing the draft Bill (we have so far reviewed 4 versions!) and making appropriate recommendations for improvement. ARBS Council also held a workshop in October at which the concerns were discussed and the way forwards agreed. We have communicated those concerns to NSSF management. In addition the ARBS Council has been in discussions with other stakeholders in the retirement benefits industry with a view to forming a co-ordinated lobby.
Following these reviews the draft Bill has been amended in many respects. Even with these amendments ARBS is still concerned that some aspects of the Bill are not in the best interests of members, existing schemes and the retirement benefits industry as a whole. This position has also been communicated to NSSF with recommendations for further improvements.
The present status of the draft Bill is that it has been submitted on behalf of NSSF to and approved by Cabinet. The next step is to submit it to Parliament for consideration. When this is done, it will first be reviewed by the competent parliamentary committee which we believe should invite comments from the industry stakeholders and the public.
Your Council is remaining vigilant in order to seize every opportunity to contribute to the best possible outcome.