Atwoli backs Bill to raise NSSF payments

The umbrella body of workers’ unions has supported a Bill that proposes raising contributions to the State-operated pension’s scheme.

Private pension schemes have opposed the National Social Security Fund Bill, saying raising the contributions threatens their business.

The Central Organisation of Trade Unions (Cotu) on Sunday said the Bill was good, and that those opposed to it feared losing their members should the new scheme take effect.

“The continued attack on the National Social Security Transformation Bill 2012 is selfish and commercially driven by a section of private retirement pension schemes that have since failed to understand the concept behind this new Bill,” Cotu secretary-general Francis Atwoli said.

In a statement, Mr Atwoli said the Bill envisages a “First Pillar Social Protection Scheme” for all Kenyans.

“The NSSF belongs to poor workers and there must be a statute in the law that compels both the haves and have-nots to contribute to such a 1st pillar Social Security Scheme,” Mr Atwoli said.

He urged Retirement Benefits Authority (RBA) to stop interfering with the proposed scheme.

Mr Atwoli said the International Labour Organisation requires a “1st Pillar Social Security Pension Scheme” and that next year ILO would make it mandatory for every government to compel employers and workers to support a scheme that will cater for every citizen.

He said the Bill has no intention of interfering with existing superior schemes.

“Our appeal to RBA as well as those opposed to the Bill is to provide an objective critique to this important Bill,” he said, adding the Bill should be forwarded to Parliament.

The Association of Retirement Benefits Schemes (ARBS) has also vowed to oppose the planned transformation of the public pension fund into a pension scheme. (READ NSSF proposes law to increase contributions)