NSSF boss speaks out on controversial Bill

Business_News

PHOTO | FILE Acting NSSF managing trustee Tom Odongo.  

NATION MEDIA GROUP

By YVONNE KAWIRA ymurori@ke.nationmedia.com
Posted  Monday, November 19  2012 at  19:30

In Summary

• Recently, private pension schemes opposed the Bill, saying that raising members’ contributions threatens their business
• In a statement, acting NSSF managing trustee Tom Odongo said the draft National Social Security Fund Bill, 2012, had been drawn to address the national social security plight and is not aimed at antagonising existing private schemes
• The draft Bill is principally seeking to convert NSSF from a National Provident Fund to a Social Security (Pension) or (social insurance) Scheme

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The National Social Security Fund has moved to defend the proposed Transformation Bill against widespread criticism.

Recently, private pension schemes opposed the Bill, saying that raising members’ contributions threatens their business.

In a statement, acting NSSF managing trustee Tom Odongo said the draft National Social Security Fund Bill, 2012, had been drawn to address the national social security plight and is not aimed at antagonising existing private schemes.

“Social security is important for the well-being of workers, their families and the entire community. It is also a means of creating social cohesion, thus helping to ensure social peace and inclusion,” Mr Odongo said.

The Bill, he said, is an essential part of the government social policy and an important tool to alleviate poverty.

Established in 1965, NSSF operates as a provident fund, providing lump sum benefits only, with a limited range of benefits.

Mr Odongo said the on-going stakeholder forums would receive formal submissions from stakeholders.

He regretted that some stakeholders had resorted to a media campaign against NSSF without reading and understanding the proposals.

Neither were they offering alternative suggestions on how to strengthen the Bill to help Kenyans save money and retire in dignity with a reasonable income replacement, he said.

“We have received good feedback from a number of stakeholders. We have since incorporated the same in the revised Bill. We will soon publish the revised Bill in newspapers and the Kenya Law monthly magazine so that Kenyans can appreciate that we have addressed a number of their concerns,” Mr Odongo noted.

The draft Bill is principally seeking to convert NSSF from a National Provident Fund to a Social Security (Pension) or (social insurance) Scheme.

If passed through the pending parliamentary process, the Bill will facilitate the statutory repeal and replacement of the existing National Social Security Fund Act (Cap. 258 of the Laws of Kenya).