RBA misleading Kenyans on NSSF Bill, says COTU

By PETER OBUYA

IN SUMMARY: RBA claims that the Bill also lacks stakeholder input as thus should be shelved to allow for further discussions.

The Central Organization of Trade Unions (COTU) on Tuesday criticised the Retirement Benefits Authority (RBA) for “misleading” Kenyans following claims by the pensions body that NSSF Bill 2012 should be shelved to allow for more time for discussions.

RBA, which is the regulatory organ in the pensions industry was reported to have poured scorn on the ambitious Bill seeking to transform NSSF from a provident into a pension fund, by urging for caution and more time for discussions.

COTU secretary general Francis Atwoli has however dismissed as misleading further claims by RBA that the Bill also lacks stakeholder input as thus should be shelved to allow for further discussions.

“The RBA should stop playing ping pong games and engaging in reverse gears to such an important Bill that has received overwhelming consultative engagement by social partners throughout its process,” Mr Atwoli said through a statement.

Mr Atwoli claims that RBA was well represented at the taskforce that drafted the Bill and that all the proposals the pensions body wanted to be contained in the bill are included.

The NSSF Bill 2012 that is due to be tabled before parliament this October seeks to transform the country's pension fund, from a provident fund making one-off lump-sum payments, to a pension scheme offering a regular income to retirees.

But RBA are of the view that NSSF should first seek to deal with issues facing it before seeking to transform its operations.

“We need to deal with serious legacy and corporate governance issues facing the NSSF before we can even start to think of changing the law governing its operations, RBA chief executive officer Mr Edward Odundo was quoted as having said.

But Mr Atwoli says that is tantamount to underrating COTU and the Federation of Kenya Employers (FKE) who have the constitutional prerogative of protecting the interest of workers.

    

“FKE and COTU are the main social partners with claim to NSSF and it beats logic to learn that RBA can reduce itself to the level of a lopsided thinker and peddle rumours to undermine such a Bill,” Mr Atwoli added.

The decision to upscale NSSF is based on the fact that the current lump-sum payments run out quickly and the beneficiaries slides into destitution thus defeats the purpose of assuring income security in old age for which social protection arrangements are intended.

NSS board of trustees chairman Adan Mohamed told the media last week that the Bill is being drafted and will be tabled in Parliament in October for enactment into law.

Mr Mohamed said the Bill seeks an increase in the level of mandatory contributions in order to ensure adequate benefit. It has already won the support of Federation of Kenya Employers.

                                       

Source: Daily Nation (29/08/2012): http://www.nation.co.ke/News/RBA+misleading+Kenyans+on+NSSF+Bill+says+COTU/-/1056/1489282/-/tow5l7/-/index.html