Membership & Benefits

Objective

The main purpose of the Scheme is to provide retirement benefits for members on retirement and to his/her nominated beneficiaries in the case of death of the member.

Membership Eligibility

How to Join: Appointed on permanent/pensionable terms? Complete Application & Beneficiary Forms and submit to secretariat.
Rejoining: Treated as a new member, but can transfer-in funds from other schemes.
Deferred Membership: If you leave but retain benefits, you become "deferred". Rejoining makes you "active" again.

Standard Contributions

Member Contribution

Deducted from Pensionable Salary monthly.

16%

Employer Contribution

Paid by NSSF on your behalf.

Additional Voluntary Contributions (AVC)

Can I pay more? Yes! Complete an AVC Form at the Secretariat.

Why AVC?

Higher interest rates from larger investment pool.
Paid in full as lump sum upon retirement.
Can fund post-retirement medical insurance.

Absence & Leave

Sick Leave

Contributions continue unless salary is suspended.

Leave of Absence

Must contribute. Please contact the Secretariat.

Remittance Deadline

Due by the 10th of the following month.

Interest on Contributions

Interest Rate

Decided by Trustees based on asset performance.

Taxation

Exempt Account interest is tax-free.
Non-Exempt is taxed.

Normal Retirement (60)

Lump Sum: Max 1/3 cash (or use for Medical cover).
Annuity: Remaining 2/3 purchases monthly pension.
AVCs: Paid as full lump sum.

Early Retirement (50)

Subject to NSSF consent. Access 1/3 cash, balance for annuity.

Ill-Health

Requires medical report/NSSF letter. Benefits paid as if Normal Retirement Age.

Other Exit Scenarios

Lump Sum: 50% Employee Share + 50% Employer Share.
Balance: Retain or Transfer to another scheme.

In Service/Deferment: Lump sum of credit + Group Life Assurance.
In Retirement: Depends on Annuity options.
Tip: Keep Nomination Form updated!

Paid fully ONLY if:
1. Normal Retirement Age
2. Permanent Immigration
3. Incapacitation
4. Early Retirement (Age 50)

Special Provisions

Post Retirement Medical Fund (PRMF) Voluntary fund for post-retirement health. Current contrib: Kshs 2,000 employer/employee.

Transfers You can transfer funds IN from previous employers or OUT to registered pension schemes.

Purchasing an Annuity Factors: Age, Rates, Gender. Selection is your responsibility

Processing & General Rules

Processing Time
Law prescribes 30 days.
30 Days
Tax Exemption for Pension Benefits
- Withdrawal from a registered scheme after a minimum of 20 years of membership.
- Having attained the retirement age as defined by the respective retirement scheme.
- Withdrawal of accured retirement benefits before attaining retirement age due to ill health.
Exemptions
Assignment
Pension Benefits cannot be used as loan security
Restricted
Disputes
Write to Board Chairman. If dissatisfied, escalate to RBA (info@rba.go.ke).
Escalate

Glossary of Terms

Key definitions to help you understand your benefits.

Accumulated Credit

The balance in a member's account including employer/employee contributions and income credited.

AVC

Additional Voluntary Contributions paid to secure additional benefits.

Annuity

A monthly pension payable upon retirement or to beneficiaries upon death.

Commutation

Foregoing part of the monthly pension for an immediate cash lump sum (usually max 1/3).

Defined Contribution Scheme

A scheme where contributions are known/fixed (e.g., 16% employer and 8% employee).

Exempt / Non-Exempt Account

Portions of the account balance that are tax-exempt or not tax-exempt respectively.

Normal Retirement Age (NRA)

The 30th day of June following the 60th birthday.

Pensionable Salary

Basic monthly salary excluding allowances.

Pensionable Service

Continuous service starting from the date of joining as a permanent employee.

Trivial Pension

An amount determined by RBA (not less than 50% of minimum wage) allowing for full cash commutation.

Trustee

Persons appointed to manage the scheme (4-9 persons, 50% elected by members).