Three key trade unions affiliated to the teaching and civil service fraternity are set to support the planned tabling of a parliamentary bill to guide the transformation of the National Social Security Fund (NSSF) from a provident to a fully-fledged pension fund.
The Kenya National Union of Teachers (KNUT), Kenya Union of Post Primary Education Teachers (Kuppet) and the Union of Kenya Civil Servants (UKCS) have backed the NSSF transformation bid, as part of a move to expand the funds current service offering and coverage.
NSSF’s ongoing bid to secure the support of key stakeholders for the draft National Social Security Pension Trust Bill 2012 which is set for parliamentary tabling in coming weeks has continued to receive crucial backing by various stakeholders. The support of UKCS is crucial as a transformed NSSF will for the first time in its 47-year history cover the needs of the civil servants who are currently not covered by NSSF.
Speaking during an engagement forum with the three unions, NSSF Board of Trustees Chairman Adan 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.
During the engagement session, KNUT officials led by Secretary General Wilson Sossion proposed that the new NSSF structure consider reserving a seat for the Teaching fraternity represented by KNUT and KUPPET. The two unions defended their request explaining that, they are not members of the Central Organisation of Trade Unions (COTU).
The support of KUPPET, KNUT and UKCS comes shortly after support from by the Head of the Civil Service,Central Organization of Trade Unions (COTU), Federation of Kenya Employers (FKE) and the Departmental Parliamentary Committee on Labour and Social Welfare.
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.
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.
Also read [NSSF Bill receives PS’ Support] and [NSSF brand comes with pledge to reform]