The ongoing efforts by the National Social Security Fund (NSSF) to secure the support of key stakeholders ahead of a scheduled transformation programme have received a shot in the arm from the civil service top guns. The draft National Social Security Pension Trust Bill 2012 which is set for parliamentary tabling in coming weeks has received crucial backing by the government.

Speaking during an engagement forum with permanent secretaries, Head of Civil Service Francis Kimemia confirmed that the Civil Service, will support the passing of the proposed bill to facilitate social security for Kenyans.

During an engagement session also attended by Labour PS Beatrice Kituyi and Financial Secretary Mutua Kilaka among other Permanent Secretaries and Under Secretaries, Kirogo also confirmed that the NSSF transformation bill is a key component of the overall strategy to reform the fund as one of the leading state corporations.

“The government will by all means support the bill to transform NSSF and ensure it remains customer focused as part of the wider efforts to reform all state corporations,” Kimemia explained. “This move is particularly key as the NSSF bill seeks to expand coverage and reach for social security solutions provided by NSSF as envisaged in our new Constitution.

The Head of Civil Service’s support comes after similar support commitments recently were confirmed by the Central Organisation of Trade Unions (COTU), Federation of Kenya Employers (FKE) and the Departmental Parliamentary Committee on Labour and Social Welfare.

Mandatory Scheme

The National Social Security Fund Bill, 2012 seeks to position NSSF as a public mandatory social security scheme covering all employees in the formal sector and a voluntary scheme for the self-employed and workers in the informal sector who wish to make voluntary contributions to the Fund.

Speaking during the engagement session, NSSF Board of Trustees Chair Mohamed explained that NSSF’s transformation bill is consistent with Government policy and the tenets of the new Constitution of Kenya (Section 43) which gives every Kenyan a right to social security.

“The new NSSF will be subject to the regulatory oversight of the Retirement Benefits Authority and will comply with the provisions of the Retirement Benefits Act subject to modifications to cater for its unique benefit offering,” Mohamed explained.

If it sails through, the NSSF transformation bill also help mobilize national savings as the rates of contribution to the new Pension Fund will be at 12% of pensionable earnings (basic earnings) split at a 50:50 ratio, between the employee and employer.

Currently, the Transformation bill outlines a range of Provident and pension benefits for its members. Among others, NSSF members will enjoy pension benefits payable under the Pension Fund such as a Retirement and Invalidity pension. Members will also enjoy a range of benefits including Survivors benefit, Funeral grants and Emigration benefits.

Under the provident fund, a member will be eligible for the benefit upon retirement or upon attaining the age of 50 years.