ICEA Life Assurance gets regulatory approval to manage NSSF pensions
ICEA Lion Life Assurance has become the latest private pension provider to obtain the approval of the Retirement Benefits Authority (RBA) to manage NSSF contributions by employees earning more than Sh18,000, also known as Tier II contributions.
The underwriter who is part of the ICEA Lion Group has made the disclosure as it lures employers who opt out of the NSSF as a custodian of the higher-tier pension contributions.
“Our team is dedicated to assisting employers with the opt-out procedure. With ICEA Lion Life Assurance Company Limited, you can expect superior investment returns and high-quality service,” the underwriter said in a statement on Tuesday.
ICEA Lion offers various pension products including personal retirement schemes, umbrella retirement benefits schemes and group personal retirement schemes.
The Group, which enjoys a AAA (KE) rating from GCR with a stable outlook, joins other private pension administrators who have received the regulatory go-ahead to manage the tier two contributions including Enwealth and CPF Financial Services.
Last month, Enwealth got the RBA nod and has since been on the hunt for employers opting out of the NSSF contributions, enticing firms with competitive returns.
“We look forward to working with employers who would like to channel Tier II contributions to our umbrella retirement benefits scheme to provide them with higher investment income and more transparency needed to manage their members’ savings proficiently,” Enwealth Financial Services CEO Simon Wafubwa stated.
An estimated Sh12.43 billion is up for grabs as private pension managers take on the National Social Security Fund (NSSF) for the higher tier contributions.
The billions in additional pension contributions were unlocked this February from the first-time implementation of the 2013 NSSF Act whose effect had been delayed by a protracted court battle.
The changes saw NSSF contributions by employees rise from Sh200 a month to a maximum of Sh1,080 for the first year of the Act’s contribution to June 2024.
Private pension services providers are required to apply to the RBA to handle NSSF contributions while employers apply to opt out of disbursing the second layer of contributions to the State-backed pension fund.