Pension managers eye NSSF benefits
25 February 2014, 09:34
Nairobi - Pension scheme managers are earmarked to benefit once the new National Social Security Fund (NSSF) Act is enforced and employers chose to opt out of their contributions.
Once the new Act comes in place, contributions will be made in two levels namely Tier 1 & 2 whereby Tier 1 is mandatory contributions that must be remitted to NSSF. Tier 2 are contributions above the mandatory contributions between Lower Earnings Limit (LEL) and the Upper Earnings Limit (UEL).
Pensions Manager at UAP Life Assurance, Charles Ocholla, said that UAP has partnered with KPMG to inform their clients how they can assist them to become compliant before May 31.
“We are already set to assist our clients towards opting out of the NSSF Tier 2 contributions. We will even write the letters for them,” he said.
KPMG Tax Manager John Mgando said that this year’s LEL was pegged at KES 6,000 while the UEL is KES 18,000 which is 50 percent of the national average earnings.
These figures, he said, were determined by the Kenya National Bureau of Statistics.
Ocholla said that employers could opt out of Tier 2 and utilize the services of a scheme that meets the requirements of the Retirement Benefits Authority.
Requirements for opting out are that the scheme must be registered with and certified by RBA and the Kenya Revenue Authority and the scheme should also comply with RBA investments guidelines.
“UAP will work with the trustees to ensure full compliance before 31st May 2014 deadline when the Act will commence,” said Ocholla.
– CAJ News
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