Home Business RBA clears Minet Kenya to manage tier two pension contributions

RBA clears Minet Kenya to manage tier two pension contributions

Minet Kenya CEO Sammy Muthui. PHOTO | Courtesy

Minet Kenya expects a growth in its assets under management going forward after getting regulatory approval to receive and mange National Social Security Fund (NSSF) tier two pension contributions.

According to  Chief Executive Officer Sammy Muthui, Minet Kenya currently manages more than 200 employer pension funds with assets under administration of Ksh 180 billion and Ksh 3.5 billion in pension funds.

“Minet is pleased to receive this approval from the regulator and looks forward to supporting employers who would like to channel Tier II contributions to the Minet Kenya Umbrella Retirement Fund and Minet Individual Pension Plan,” said Muthui.

Under the NSSF Act 2013 revised rates which took effect in February this year, pension contributions for those earning Ksh 18,000 with capped deduction of Ksh 1,440 and which fall under tier two are to be handled by private asset managers contracted by the employer who have opted out of the NSSF contributions.

The approval will see Minet provide pension administration services to employers who would like to opt out of Tier II NSSF contributions and channel their members’ remittances into a scheme.

“As Kenya’s oldest Pension Scheme administrator, Minet is ready to offer its many years of expertise in pension administration to secure the future of Kenya’s working population with solutions that guarantee them a comfortable retirement,” he added.

In the last three years, the risk advisor has seen the number of employer pension plans under its watch expand by fifteen.

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