Social Security

Pension Rights

The National Social Security Fund Act 2013 provides for old age benefit (pension) when the insured person (male or female) attains the age of 60 years, or retired from regular paid employment.

A person is eligible for retirement pension on attaining the pensionable age (of 60  years) or attaining the age of 55 years in case of opting for early retirement.

A member may elect to have the value of his Pension Credit Fund at the date of his retirement applied to the pension payable to the member.

The pension payable to a member on his retirement is of such amount as can be purchased by his pension fund credit at the date of his/her retirement. A pension which becomes payable may be purchased in the member's name from a registered insurer of the member's choice.

A member who is entitled to receive pension may elect to receive part of his/her pension fund credit as a lump-sum however this cannot exceed one-third of Tier II Pension Fund Credit. 

Source: §36 of the National Social Security Fund Act 2013; Retirement Benefits Act 1997

Dependents' / Survivors' Benefit

A survivors' pension is paid to the dependents if a member dies before the pensionable age and was contributing to the Pension Fund at the time of his death and at least 36 monthly contributions had been made by the member immediately before the date of death. The survivors' pension must be equal in value to the member's Pension Fund Credit except that the Tier I credit in respect of the deceased member is increased by an amount equal to the last Tier I monthly contribution multiplied by the lower of the "half the number of months of potential employment between the member's date of death and attainment of pensionable age" and "90 months".

The survivors' pension is paid to the nominated beneficiary within one year of the death of the worker in such proportions as stipulated by the member. If the deceased member did not satisfy the qualifying conditions, the dependents are entitled to the payment of a lump sum benefit equal to his Pension Fund Credit.

On the death of a member who paid at least six monthly contributions immediately preceding his death, a grant for defraying funeral expenses is paid to the next of kin in one lump sum of 10,000 shillings.

A claim for payment of a funeral grant must be submitted not later than sixty days from the date of the death of the Member.

Source: §37 & 40 of the National Social Security Fund Act 2013

Invalidity Benefit

A member is entitled to invalidity pension if he/she suffers physical or mental disability of a permanent nature as certified by a medical board established under the Act and has made at least 36 monthly contributions immediately preceding the date of invalidity.

The invalidity pension is determined similarly as old age/retirement pension except that the Tier I credit in respect of the member is increased by an amount equal to the last Tier I monthly contribution multiplied by the lower of the "half the number of months of potential employment between the member's date of death and attainment of pensionable age" and "90 months".

A member who does not meet the contribution requirement (of 3 years) is entitled only to the payment of a lump-sum benefit equal to the member's Pension Fund Credit.

sources: §38 of the National Social Security Fund Act 2013

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