NSSF Tier II Contracting Out: Take Control of Your Employees’ Retirement
By law, part of your employees’ pension contributions goes to NSSF.
But here’s what most employers don’t realize:
You can legally redirect the Tier II portion into a private pension scheme—without increasing your costs.
What Is NSSF Tier II?
Under the NSSF Act:
- Tier I: Mandatory contribution paid to NSSF
- Tier II: Can be:
- Paid to NSSF, or
- Contracted out to an approved private pension scheme
This gives employers the opportunity to offer a more structured and potentially higher-performing retirement solution.
Why Contract Out Tier II?
Forward-thinking businesses use this to improve employee benefits without increasing payroll costs:
- Better Growth Potential: Professionally managed pension funds
- Improved Employee Benefits: Stronger retirement package
- More Control: Clear reporting and fund visibility
- Competitive Advantage: Attract and retain skilled employees
How It Works
- Employer registers with an approved umbrella pension scheme
- Tier II contributions are redirected to the scheme
- Funds are professionally invested on behalf of employees
- Employees build a structured retirement benefit outside NSSF
Who Is This Best For?
- SMEs with structured payroll
- Companies looking to improve staff benefits
- Employers competing for skilled talent
- Businesses ready for structured financial planning
Why Work With Us?
We don’t just set it up—we make sure it works properly.
- Scheme Selection: We help you choose the right umbrella fund
- Compliance Guidance: Ensure you meet all regulatory requirements
- Seamless Setup: Smooth transition from NSSF to private scheme
- Ongoing Support: Reviews, updates, and staff guidance
Don’t Leave Value on the Table
If you’re already contributing to NSSF, you’re halfway there.
The question is:
Are you using Tier II to your advantage—or just defaulting?
📧 hello@dennylinkinsurance.co.ke
📞 0721 336 806 (Call/WhatsApp)
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