Workers will suffer substantial and irreparable harm- A petition against the NSSF increment.
County Pensioners Association on Friday, February 17, filed a petition against the increment of NSSF to 2160.
According to president Ruto, this increment was necessary, to benefit the elderly when they retire and curb old age poverty.
However, CPA, has argued that this increment will more harm than good to various individuals.
The petition read,”Workers will suffer substantial and irreparable harm (including but not limited to a run on pension schemes superior to the NSSF) unless this court stops the implementation of the disputed Act pending the hearing and determination of the Applicant’s appeal.”
“The ordered functioning of the pensions industry will suffer enormous and irreversible chaos, harm, and damage should the government, trade unions and Federation of Kenya Employers implement the NSSF Act of 2013” read the petition part.
The changes from NSSF were to take effect on february 2023, however, the supreme court of Kenya has not yet rendered a verdict regarding the same.
NSSF stated,”The pension contribution will be 12 per cent of the pensionable wages made up of two equal portions of 6 per cent from the employee and 6 per cent from the employer subject to an upper limit of Ksh2,160 for employees earning above Ksh18,000.”
However, the COTU secretary general, Francis Atwoli supported President Ruto’s initiative of increasing NSSF.
He defended this by saying that this will help people by naturing a good saving culture even when they are old.
Atwoli stated,”Many workers have only been contributing to and receiving funds from the provident fund, which is a lump sum payment that workers have been receiving at a go (Tier 1 – provident fund).”
” After receiving the lump sum from the provident fund, Kenyan workers have been left exposed to old age poverty with no social security covering them,” he added.