Kenya Orient Life Assurance Limited has achieved a significant milestone by gaining approval from the Retirement Benefits Authority (RBA) to oversee NSSF Tier II contributions through its Kenya Orient Individual Pension Plan and Umbrella Pension Scheme.

This pivotal development follows the recent amendment of the NSSF Act No. 45 of 2013, which restructures the allocation of contributions into Tier I and Tier II categories, with the aim of enhancing retirement benefits for Kenyan workers.

Under the revised NSSF Act, contributions from both employees and employers, up to the ceiling of Sh720, will be directed to NSSF as Tier I funds.

However, contributions exceeding Sh720, up to a maximum of Sh1,440, are now categorized as Tier II and are managed by authorized private pension schemes.

"This milestone marks a significant step towards our continued commitment to providing comprehensive retirement solutions with great returns to our clients," stated Jackson Muli, Principal Officer of Kenya Orient Life Assurance Limited.

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This approval not only underscores Kenya Orient's dedication to delivering robust retirement options but also aligns with its mission to ensure financial security and well-being for their clients during their post-employment years.

In the preceding year, Kenya Orient Life Assurance achieved recognition as the top-performing pension scheme, owing to a declared interest rate of 11 per cent and a commendable three-year average interest rate of 10.33 per cent.

The consistently impressive performance reflects the company's steadfast efforts in safeguarding the financial futures of its members.

"We are happy to be joining other industry players in helping eligible employers with the opt-out process for Tier II contributions. This regulatory approval further solidifies our position as a reliable pension provider," Muli affirmed, highlighting the company's collaborative role in facilitating the transition to the new contribution framework.

To operate as an authorized private pension scheme, stringent regulations must be adhered to.

Qualifying private pension schemes are issued a reference scheme certificate by the RBA, which serves as proof of the scheme's compliance with RBA regulations.

This certification ensures that the management and utilization of Tier II contributions are in line with established industry standards, offering participants the assurance of a secure and well-regulated pension system.

As Kenya Orient Life Assurance Limited takes on this pivotal responsibility, the company's approved role in managing NSSF Tier II contributions signifies not only a testament to its reliability but also a substantial stride towards the enhancement of retirement benefits for Kenyan workers.