The National Social Security Fund (NSSF) yesterday announced a benefits payment plan that will allow qualifying members to retain part of their savings with the Fund at the point of exit to avoid depletion of their life savings within a short period. The innovation, dubbed NSSF Draw Down Payment Plan, will be eligible to members who qualify for Age Benefit and Withdrawal Benefit.
According to the NSSF Act, Age Benefit is paid to a member of the Fund “if he or she attains the age of fifty years and has retired from regular employment; or if he or she attains the age of fifty-five years”.
Withdrawal Benefit is paid to a member of the Fund “if he or she attains the age of fifty years; and if he or she has not been employed under a contract of service for a period of one year immediately preceding his or her claim. the Benefit is also paid to “any person who ceases to be a member of the fund by virtue of being employed in excepted employment”.
Speaking to media at the launch of the plan at Workers House yestraday , Patrick Ayota the Fund’s Deputy Managing Director said the plan will enable qualifying members utilise their NSSF savings slowly as they work through a retirement plan/investment that works for them.
“We have received several requests from qualifying members to pay them a portion of their savings and pay them the balance in instalments as they finalize their investment plans for the large sums saved.” Ayota said.
The Draw Down Payment Plan was informed by a survey we conducted amongst 45- 60 year old members where 62% said they would consider the payment of their benefits in instalments rather than receiving them in a lump sum.
According to an earlier internal survey by the Fund, more than 70% of the beneficiaries had depleted their savings received from the Fund within two years, and most wished they had had an opportunity to receive their savings in installments.