By John Oyuke
The National Social Security Fund (NSSF) is seeking the help of employers to eliminate Sh6 billion contributions it holding in a suspense account as it fast tracks compliance with Retirement Benefits Act.
NSSF is also planning to build 30,000 mixed income residential houses in Mavoko Town in Machakos County, as it seeks to benefit from high returns in the real estate market.Acting Managing Trustee Tom Odongo said the Fund intends to reduce and eventually eliminate the suspense account. He revealed he was talking to employers to provide returns to accelerate crediting of members’ accounts.
Odongo said some employers had been contributing but not submitting returns thus delaying the process of crediting members’ accounts and frustrating elimination of amounts in the suspense account. Rule 28 (2) of the occupational rules for a retirement benefit scheme requires NSSF to maintain an account where all transactions are recorded.
Odongo told stakeholders in Nairobi on Wednesday that a taskforce has been established to work with employers on the reduction and elimination of the amount in suspense at the fund.
He said revamping of NSSF is being fast tracked to avoid past administrative failures, adding that the fund is lobbying for enactment of the Bill seeking to convert it into a National Social Security Pension Trust Fund.
The National Social Security Pension Trust Bill, 2012, proposes that workers from informal and formal sectors contribute and benefit as opposed to mandatory contributions from those in the formal employment only while pension will be paid end month as opposed to lump sum payment after retirement.
Kenyans contribute Sh200 per month plus a similar amount from the employer bringing the figure to Sh400. Retirees aged 55 or 60 years take home less than Sh80, 000.
