Atwoli Backs NSSF Hike, Cites Worker Benefits
The Central Organization of Trade Unions (COTU) has expressed its approval towards the National Social Security Fund (NSSF) Board of Trustees’ recent resolution to execute the NSSF Act of 2013.
The Secretary General of COTU, Francis Atwoli, declared in a statement that social security is a fundamental human right that caters to the needs of protection against different life risks and social demands.
He also emphasized that the Kenyan Constitution of 2010, Article 43, provides for every Kenyan citizen’s right to a pension and social security.
The implementation of the NSSF Act of 2013, according to Atwoli, will make it mandatory for employers to provide a provident fund and a pension scheme for their employees.
He explained that many workers have been contributing to and receiving funds from the provident fund, which is a lump sum payment that workers have been receiving all at once (Tier I).
However, after receiving the lump sum from the provident fund, Kenyan workers are left vulnerable to old age poverty with no social security coverage.
The NSSF Act’s implementation followed the Court of Appeal’s decision to stay the entire judgment of the Status and Labor Relations Court on the act.
With the act’s passage, employees will now be able to contribute to and receive funds from both the provident fund (Tier I) and the pension fund (Tier II).
Atwoli also noted that employers may choose to opt out of Tier II in exchange for a better scheme, but employees will still be entitled to monthly benefits upon their retirement.
Atwoli reminded employees that NSSF deductions are not tax deductible and that they will have access to the funds when they retire.
He also stated that COTU is prepared to hold high-level tripartite consultations to address any issues that may arise during the NSSF Act of 2013’s implementation.
Furthermore, Atwoli encouraged the NSSF Board of Trustees to appoint a competent Managing Trustee/CEO who will lead with integrity and resist corrupt practices.
The NSSF Board of Trustees’ appointment of a capable and trustworthy Managing Trustee/CEO will ensure that the act is executed with integrity and without corrupt practices.
Atwoli Backs NSSF Hike, Cites Worker Benefits
