Roles of pension funds and its importance with respect to retirement (example from Kenya)

2. PREFACE
 As we develop through our lifetime, we have an expectation that a
time will come when we will be able to retire after years of working.
As we come to retire we will often experience a reduction in income
and eventually when we stop working no income at all. Therefore we
must secure our means of financial stability and security after
retirement, which will enable us to continue living the life we were
living prior to retirement.

3. PENSION FUND
 It is a common asset pool meant to generate stable growth over
the long term and provide financial support for employees when they
reach the end of their working years and commence retirement.
 The employer may decide to run pension funds in-house or may
involve a financial intermediary for the company’s employees.
 The employer also contributes to the retirement funds.

4. ROLES OF PENSION FUNDS
Pension funds maintain contentment and morale
of the staff. It assures them of their future financial
stability, in turn, means a more healthy staff and
greater productivity.

5. ROLES OF PENSION FUNDS
Pension funds attract and keep competent
employees. This is an advantage to the
employer.

6. ROLES OF PENSION FUNDS
Pension funds are there to support employees and
give them a decent standard of living when
commencing retirement. To maintain the same
standard of living after retirement.

7. ROLES OF PENSION FUNDS
Pension funds can provide protection and
financial support to dependents in the event
of a members’ death.

8. ROLES OF PENSION FUNDS
Pension funds exist to encourage growth and
investment due to state tax relief on pensions.

9. NSSF
 Corporate Social Responsibility and involve the society at the
following various levels.
 Corporate Membership to the Kenya Society for the Blind. Donates
Kshs. 50,000/= annually.
 The Fund believes in supporting small and upcoming women's groups
in an effort to eradicate poverty. The Fund gives donations, offers advice,
helps with investments and recruits the women through Voluntary
Membership. This enables them to save with the Fund for their future.

10. NSSF
 Standing Donation to the Elderly Members of the Society. Each
year the Fund donates Kshs. 50,000/= to Helpage Kenya, an
Organization dealing with the welfare of the Aged. NSSF also
donates foodstuffs and blankets to the elderly.

11. NSSF
 The Fund has 39 branches spread across the Country and makes
deposits in several banks where its branches are. These deposits
improve liquidity of the banks enabling the banks to lend loans to the
Society.

12. NSSF
 MILESTONES
• Remarkable growth in membership.
• The Funds large market share in the retirement benefits industry.
• The ability to pay the retirees.
• The introduction of Voluntary Contribution.
• The introduction of Funeral Grant.