The Retirement Benefits Authority (RBA) has granted its approval to Kenya Orient Life Assurance Limited, allowing them to oversee NSSF tier II contributions via the Kenya Orient Individual Pension Plan and Umbrella Pension Scheme.
“We are happy to be joining other industry players in helping eligible employers with the opt-out process for tier II contributions. This regulatory approval further solidifies our position as a reliable pension provider.” Said Kenya Orient Life Assurance Limited Principal Officer Jackson Muli. “This milestone marks a significant step towards our continued commitment to providing comprehensive retirement solutions with great returns to our clients.”
In 2022, Kenya Orient Life Assurance achieved recognition as the top-performing pension scheme, driven by an announced interest rate of 11% and an impressive three-year average interest rate of 10.33%.
The NSSF Act of 2013 brought about a modification in the monthly contributions made by both employees and employers from a fixed amount of KES200 to a 6% percent deduction operated in the Tier 1 and Tier II system. The Tier I contributions are contributions in respect to pensionable earnings up to the Lower Earnings Limit (LEL) of KES6,000.
The Tier II contributions are contributions in respect to pensionable earnings up to the Upper Earnings Limit (UEL) of KES18,000. The rate for each tier is 6% from the employee and 6% from the employer subject to an upper contribution limit of KES2,160 for employees earning above KES18,000.
The contributions relating to the earnings below the LEL (a maximum of KES720 for both employer and employee) is credited to what is known as a Tier I account while the balance of the contribution for earnings between the LEL and the UEL (up to a maximum of KES1,440 for both employer and employee) is credited to what is known as a Tier II account.
With the NSSF Act of 2013, employers have an option to opt out of Tier II contributions to NSSF and remit them to a contracted-out scheme.
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