A teachers’ union has rejected National Social Security Fund (NSSF) deductions saying it breaches the Third Rule.
A petition filed at the High Court by the Kenya Union of Post Primary Union Teachers (KUPPET), revealed that some teachers are struggling financially due to exorbitant deductions on their salaries.
Moreover, KUPPET filed a lawsuit against the Public Service Superannuation Scheme (PSSS) and NSSF.
According to the teachers’ union, tutors are required to contribute 7.5% of their salaries to PSSS.
Likewise, they are obligated to contribute 6% of their wages to NSSF with matching funds provided by the Teachers Service Commission (TSC).
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Similarly, they stated that instructors must also now contribute 1.5% of their salary towards the housing levy.
As such, KUPPET claims it is unjust and a violation of the Employment Act to force teachers to pay two mandatory pension plans.
The Akelo Misori-led union notes that a third of the teacher’s monthly income goes into the taxes.
“The petitioner (KUPPET) further asserts that its members are coerced into joining two pension plans that are both administered by the government and share the same goal of providing members with pension benefits. The union contends that there is no logical justification or explanation for why the petitioner’s members should be subjected to two government-mandated pension plans,” KUPPET states in court papers filed on Friday, August 11.
KUPPET has sued the Attorney General, NSSF board, TSC, and National Assembly and further listed PSSS as an interested party in the case.
Government Withholds Teachers’ Pension
KUPPET also contested the government’s decision to withhold NSSF contributions from the salary of its members.
They argued that it is unlawful and unfair for the government to withhold teachers’ pension funds if they are not registered with or affiliated with the NSSF.
Furthermore, the union’s lawyer Linet Maiyo noted that teachers should not be subject to the NSSF plan since they were never consulted.
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Maiyo argues that the scheme’s requirement of participation violates teachers’ freedom to select the pension plan of their choice.
“Members of the Petitioner are already enrolled in a separate pension plan that offers higher returns than the plan that the Respondents are requiring them to join.
Being forced to join the scheme under the NSSF Act has violated the petitioner’s members’ right to choose to be a part of a competitive pension scheme,” claims Maiyo.
