Kenyans aged 55 years and above are eligible for retirement benefits through the National Social Security Fund (NSSF).
Beneficiaries of the NSSF retirement benefits and grants can claim them when they have retired from regular paid employment.
Additionally, public and private occupational pension schemes also exist for specific workers, with benefit claim procedures managed by employers and pension administrators.
To claim benefits, eligible members complete application forms provided by the NSSF online and in their offices, which are submitted to the NSSF branches in person.
“The member or claimant should complete the relevant application form and submit it in person to their nearest branch office. Application forms are available online and in all our branch offices,” NSSF directs.
According to NSSF, citizens aged 50 years who have retired from salaried employment are also eligible for the withdrawal benefit under the retirement benefit claim scheme.
NSSF Retirement Benefit Claiming Process
Eligible and verified beneficiaries of the retirement benefit scheme are expected to visit the NSSF branch offices with an application form for the benefits they are claiming.
A certified copy of the applicant’s retirement letter must be submitted during the visit to the branch office.
Additionally, the applicant is required to submit a certificate of service or a termination letter from their work.
Further, the applicant should present their NSSF membership card or NSSF number to verify eligibility and membership identity.
A National Identification Card (ID), passport, or Alien ID is also required by the NSSF to identify the applicant.
In addition, the applicant claiming the retirement benefit is expected to submit bank details for Electronic Funds Transfer (EFT) or official letters confirming ownership of the account.
Upon submitting all the required documents to start the retirement benefit claim process, an application form is issued by the NSSF staff, and applicants are guided in completing the form.
Successful completion and verification of the applicant’s eligibility by the NSSF staff are then carried out, and the immediate process of benefits claim is initiated.
According to the NSSF, the payout on the NSSF retirement benefits is handled promptly and within 24 hours upon request, with allowance for verification on benefits claims.
The NSSF urges eligible beneficiaries of the retirement benefits to check their contribution statements to confirm their balances regularly.
A representative with the power of attorney handles Kenyans in the diaspora, confirms the contribution balance, and some qualify for the emigration benefit.
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NSSF Contribution Structure
For beneficiaries to claim the benefits, they must have either been contributors to the Tier 1 or Tier 2 contribution structure.
Kenyan workers earning a lower limit of KSh 8,000 to 9,000 per month contribute under the Tier 1, while those earning higher incomes, with a limit of KSh 72,000 to 108,000, use the Tier 2.
In the Tier 1, 6% of a pensionable pay up is made and remitted directly to the NSSF, while in the Tier 2, a 6% pay up on the earnings above the Tier 1 is made.
However, the Tier 2 pensionable payment can be remitted to the NSSF or to approved private schemes, unlike the Tier 1, which is fixed to the NSSF.
Funds in the NSSF grow annually at an interest rate of between 5 and 7 % that a beneficiary can claim upon retirement.
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Payout Options
Eligible beneficiaries of the retirement benefits can receive payouts in a lump sum that includes all the accumulated contributions and the interest earned on the Tier contributions.
Alternatively, the payout can be made through monthly pensions that are convertible to lifelong payments after age 55.
However, according to the NSSF, lump-sum payouts are permanently turned off, and benefits cannot be claimed before retirement.
In case of the death of the beneficiary, the retirement benefits are paid to the nominees and next of kin of the beneficiary.
Further, Kenyans abroad who are eligible for the emigration benefits can make a full withdrawal of their benefits if they are leaving Kenya permanently.
