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NSSF boss Omerikwa denies firm is a cash cow for politicians

In this interactive series, we invite our readers to send in questions to select public figures.
Answers will be published in the next print and online editions.
This week, acting Managing Trustee of the National Social Security Fund (NSSF), Dr Anthony Omerikwa, responds to your questions.
1. I know the objective of contributing to the National Social Security Fund is to secure one’s future but I don’t understand why I should wait until I attain the mandatory retirement age even if I leave employment early.
Is it possible for the NSSF Act be amended such that a member can use his or her contributions to, for instance, secure a loan to improve his or her livelihood?
That way NSSF will stop being the cash cow it has always been over the years and help the members make better use of their contributions.
Peter Mungai, Nakuru
It is true that the objective of making contributions to NSSF is to secure one’s future but this has to be done within the provisions of the law.
For the purpose of NSSF benefits, Act No 45 of 2013 defines retirement age as 60 years, however, section 36 (1) (b) provides an early retirement age of 50 years and, therefore, one has to meet the minimum/mandatory requirements to access benefits.
Section 31 of Act No 45 of 2013 makes provision for assignment of NSSF contributions to secure a mortgage or loan and, therefore, it does not require any amendment.
However the facility should be administered under the terms and conditions provided under the RBA Act.
2. Is there a law that requires that one must attain the age of 55 to collect his or her benefits?
What of people who for one reason or another leave formal employment before the mandatory age?
Marok George
Yes, the NSSF Act No 45 of 2013 defines retirement age as 60 years, however, section 36(1) (b) provides early retirement age of 50 years.
3. My dad, Solomon Muriungi Marete, died in 2002 and we have been trying to claim the funds he had at NSSF without much success.
He worked with Kenya Power. We have been asked for the death certificate but the person who had it lost it. How can NSSF help in this case?
Ndesh Muriithi
The death certificate of a member or a beneficiary is a mandatory requirement.
Visit the Office of Registrar of Births and Deaths where the death was reported or the nearest Huduma Centre and you will be advised on how you can obtain another certificate.
4. It is not in doubt that NSSF has vast investments courtesy of contributions from members.
However, the returns from savings after 60 years do not often match the investments the Fund has.
What determines the earnings from the savings? What is the Fund doing to make its loyal members a happy lot after retirement?
George Khamadi, Busia
NSSF has been declaring competitive returns based on the performance of its portfolio.
We have managed to pay returns as high as 12.5 per cent.
Currently, it has outsourced its investment to improve on return on investment.
5. Some time back the NSSF wanted to dispose of the prime plot between Nyayo House and Barclays Plaza but it stopped the plan.
Is time not ripe to consider developing the property, if that is what you have in mind?
Githuku Mungai, Nairobi
NSSF is guided by its investment policy, and currently, it is in the process of doing project concepts on this.
6. The Auditor-General recently indicated that NSSF might have lost in a big way when it bought the former Polana Hotel building in Mombasa by way of low occupancy rate in the property.
What measures do you have in place to ensure that you cut your losses?
Githuku Mungai, Nairobi
The building was leased out and NSSF is currently reviewing how to optimise on the returns.
7. My father, Pius Kinoi Maingi, of Kenya Police Service exited the service in 1988.
His last station was Webuye police station. He has never received any of his savings from NSSF.
How can I follow up on this since he is now old and I am his only son?
Timothy Kinoi, Machakos
Three pertinent facts must be clarified to establish whether the aforementioned has any claim to make at NSSF.
The first is to confirm if he was a member. Secondly, his membership number and lastly, if he was a contributor to NSSF.
Kindly visit the nearest NSSF office and you will be guided on how our member can apply for his benefits.
8. My NSSF member number is 334295815. I worked for Kenindia Assurance from March 1, 1988 to December 1999 when I was retrenched.
Now, I am over 50 years old. I visited the NSSF office nearest to me to claim my savings.
To my shock, there was only one entry showing on my account yet every month NSSF deductions were made from my salary by my employer.
How is this possible and how can I get my dues?
Mercy Karamana, Meru
There is a possibility that your employer was remitting contributions without the necessary returns.
You are requested to visit the nearest NSSF office and collect a schedule form, which you will take to your former employer for completion.
9. For any key institution like NSSF, there must be some challenges facing it.
What could be some of these challenges and how effectively are these challenges being tackled?
Francis Njuguna, Kibichoi
The challenge is widening the scope of social security to all our members.
To mitigate this, we have collaborated with other agencies and partners.
NSSF has a working Board of Trustees that guides the management on the running of the organisation, which ensures that we follow the Retirement Benefits Authority guidelines.
We are also open to the public who can reach us through our branches countrywide, social media platforms and our toll free number 0800 221 2744.
10. I have worked in a private school since 2011 to date.
My director was not remitting the NSSF contributions until I consulted the Ombudsman office on December 2015.
He was forced to start remitting the contributions but only for a few months in January to October 2016 when he stopped again.
I tried reaching him through an advocate and he threatened to sack me. What I can do?
Balongo Caleb, Kiambu County
Kindly visit the nearest NSSF branch and seek the assistance of the branch manager.
11. I am a member of NSSF and my number is 098431935. I used to work for Telkom Kenya between August 2004 and January 2013.
I realised that the organisation did not deduct the NSSF dues from my payslip between 2004 and 2007.
Even though the firm had a private pension scheme then, these are statutory deductions.
What can be done about this? Isn’t what happened to me illegal? Are there no penalties for the concerned firm?
Wycliffe Obura
We presume that in the three years (2004 -2007) your contributions went to your in-house scheme and were earning interest.
Private pension schemes are regulated by the Retirement Benefits Authority.
12. Why is NSSF always in the news for the wrong reasons during the electioneering period?
Is it true the government of the day comes for handouts at NSSF?
If not so, isn’t it proper to correct this perception that has been there for decades that the fund is a cash cow for politicians?
Denis Momanyi, Nyamira
Recently, there have been reform measures at NSSF that have infused core principles of governance and best practices and that is why of late its image has improved.
In order to enhance transparency at NSSF, it recently held its 4th Annual General Meeting and is fully compliant with the Retirement Benefits Authority provisions and guidelines.
All these are geared towards ensuring that errors from the past do not recur.
13. Some time in 2014, NSSF embarked on constructing a 36-floor Hazina Trade Centre.
Close to three years later, the project has not only been halved to 15 storeys but the works have also been progressing at snail’s speed.
As Kenyans, we are concerned by the unsightly unfinished edifice and challenges accessing the building.
What could be the reason for the delay and when is the project likely to be finished?
Lawi Obiero, Nairobi
NSSF recently got the requisite approvals to finalise the project.
14. Being that NSSF is the largest shareholder of the National Bank of Kenya, how are you using your shareholding influence to improve operations at the bank?
Since the former chief executive Reuben Marambii left, the bank has been on a downward spiral and everything he did seems to have been undone or simply ignored.
As a loyal customer of the bank, I have on numerous occasions been left bewildered by the kind of services offered.
Please do something so that the bank can return to its former status.
Gladys Nkatha, Chuka
Recently, the bank has been undergoing a transformation, which the NSSF is actively involved in as it strives to be a top-tier bank in Kenya.
15. NSSF has over the years had the dubious reputation of the highest turnover of managing trustees because of entrenched interests as a result of the money it manages and the tenders.
How has this affected NSSF’s operations? How do you intend to change NSSF’s image?
Bruce Otieno, Kisumu
These are historical issues we are trying to mitigate through proper governance and best practises such as compliance to the RBA regulations in order to enhance accountability and transparency.

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