County pensioners are now seeking an out-of-court settlement with the National Social Security Fund (NSSF) over the eligibility of some members to contribute to the social security fund.
The new plan will see county workers who are paying NSSF contributions higher or equal to NSSF exempted from contributing to the fund.
In the current setting county workers who have been contributing to the county pension funds were still compelled to contribute to NSSF.
However, the petitioners are now seeking a plan that will see employees who are in pension schemes that offer benefits that are equal to or superior to those offered by the National Social Security Fund exempted from the provisions of the National Social Security Fund Act, 2023.
“We have instructions to initiate negotiations on a mutually agreeable settlement of the dispute embodied in the above cases, which essentially revolves around the subjection of previously exempt employees to mandatory NSSF membership,” read a letter from the petitioners’ lawyer Muthomi & Karanja
The letter further noted that given the matters outlined in the preceding paragraph of this letter, we are pleased to enclose a draft Consent Order for your consideration and possible execution.
In a court letter seen by the Star dated 28th September 2023, the Supreme Court has already issued a go-ahead for the settlement.
“By consent of all parties, the consolidated petitions are marked as settled on the listed grounds. Each party shall bear its Costs for the proceedings before this Court and the Courts below,” read the letter signed by The Supreme Court Deputy Registrar.
The Employment and Labour Relations Court has jurisdiction to hear and determine disputes relating to the constitutionality of statutes that affect pensions, gratuities, and other terms of employment.
