NSSF Raises Pay Out on Retirement Savings to 10 Percent
The National Social Security Fund (NSSF) has increased its payout on retirement savings to 10% for the 2020/21 fiscal year due to the period’s increased income.
Disclosures made by the fund, which is due to release its 2020-2021 Annual Report later this week, indicate a threefold increase in total net income to Ksh.32.8 billion from Ksh.9.8 billion earlier.
The revaluation of investments resulted in fair value gains of Ksh.11.5 billion for the NSSF, compared to paper losses of Ksh.10.2 billion in the preceding fiscal year.
In the same period, the fund’s investment income increased by 5.9% to Ksh.21.6 billion from Ksh.20.4 billion, while Ksh.58.9 million was recorded as a gain on the realization of assets, compared to a loss of Ksh.50.7 million.
Consequently, NSSF net assets ended the fiscal year at Ksh.284.5 billion, up from Ksh.249.7 billion, an increase of Ksh.34.8 billion.
The fund’s total operating expenses increased by 22 percent over the year to Ksh.6.6 billion, with general administration expenses increasing to Ksh.2.5 billion from Ksh.1.6 billion.
Despite the persistence of the COVID-19 epidemic during the reporting period, donations receivable from members remained essentially similar at Ksh14.5 billion, compared to Ksh14.7 billion earlier.
However, net surpluses from member transactions decreased by 16.5% to Ksh8.6 billion, as benefits payout increased to Ksh5.9 billion from Ksh4.4 billion.
During the review period, NSSF Treasury bond holdings climbed from Ksh.124.3 billion to Ksh.152.9 billion, while the portfolio of quoted stocks increased from Ksh.52.5 billion to Ksh.66.7 billion.
At Ksh34.7 billion, the value of the fund’s investment properties remained unchanged.
NSSF Raises Pay Out on Retirement Savings to 10 Percent
