Teachers push for their own pension scheme

Teachers are pushing the government to allow them have their own pension scheme as opposed to the National Social Security Fund (NSSF).

Kenya National Union of Teachers (Knut) secretary-general Wilson Sossion said teachers are determined to have an improved pension scheme that will cater for their interests.

“We have already made it clear that we will not join NSSF because we do not want to put our money where we are not sure it is safe,” Mr Sossion told the Sunday Nation. He maintained that the NSSF Act was rushed and stakeholders were not consulted before it was passed into law.

“We do not even know who generated that Bill and we are not part of the Act and will not support it,” said Mr Sossion. Knut now joins universities that have also opposed the new scheme saying they want to remain in their own, which they describe as better.

According to Universities Academic Staff Union (Uasu) deputy secretary-general Jacob Musembi, Kenyans have a right to choose a pension scheme of their choice.

“The government should not force us as to join NSSF just because the scheme belongs to it. We are in a scheme where we cumulatively contribute 30 per cent; now you are forcing us to join a scheme involving 12 per cent. We want to be exempted from this NSSF scheme,” said Mr Musembi.

UNDER CIVIL SERVANTS' SCHEME

However, Retirement Benefits Authority supervision manager Charles Machira said that it will be hard for teachers to opt out of the NSSF scheme, noting that they are under the civil servants’ pension scheme which is non-contributory.

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The Act allows private pension funds to opt out and continue receiving members’ contributions above the statutory minimum of Sh360 a month.

However, NSSF chairman Adan Mohamed has maintained that it is mandatory for public servants to join NSSF but will be allowed to run their own schemes.

Mr Mohamed said that NSSF was not opposed to any amendment of the Act, noting that stakeholders can petition the board, Cabinet Secretary or Parliament.

Knut chairman Mudzo Nzili said that the government rushed the passing of the law without proper consultations. Several unions have opposed the requirement that all public servants contribute to the NSSF scheme.

“We have about 10 million Kenyans who work while it is only about 300,000 that are in the pension scheme. We have come in to ensure that the rest of Kenyans also benefit,” said Mr Mohamed.

(READ: Inefficiency cost NSSF Sh1.7bn, says labour group)

Already, more than 120 employers have applied to retain a larger proportion of their employees’ retirement contributions in private pension schemes, away from the State-run fund. NSSF’s investment portfolio now stands at Sh135 billion compared to Sh110 billion in 2012.

Meanwhile, Mr Sossion, speaking in Bomet, urged the government to implement the return-to-work formula it signed with teachers in July last year.