Retirement Funds are the arrangements in place to enable residents in Kenya to accumulate funds to provide them with income upon retirement.
Retirement funds are compulsory, and it is further encouraged by the government to contribute personally, where it is supported with tax benefits.
The government has set minimum standards for contributions for employees as well as for the management of retirement funds. It is required for employers to make retirement contributions for their employees over and above the employees’ wages or salaries.
For most people, retirement funds begin when you start work and your employer starts paying it for you.
To create a retirement fund, click on Maintenance…Retirement Funds. The following screen will display when you create a retirement fund for the first time:
|Company||Select the company from the drop down in which you will create the retirement fund.|
|Fund Type|| Select the fund type:
* NSSF; or
* Pension / Provident Fund
|NSSF Act|| Select whether the retirement fund must be calculated on:
* Old Act (No. 258); or
* New Act (No. 45 of 2013)
|Contribution Percentage|| Old Act – If you have selected the Old Act option, the contribution will be 5%.
New Act – If you have selected the New Act option, the contribution will be 6%.
Pension / Provident Fund:
If an employee makes contributions to a private retirement fund, you will select this option.
|Pension / Provident Fund Certificate Number||Enter the Pension / Provident Fund Certificate Number in this field.|
|Pension / Provident Fund Name||Enter the Pension / Provident Fund scheme name in this field.|
|Pension / Provident Fund Institution Name||Enter the institution name that is in charge of the Pension / Provident Fund.|
Click on the Save button to create the Retirement Fund.