Parastatal Pensions Fund (PPF)

About Parastatal Pensions Fund (PPF):

The Parastatal Pensions Fund (PPF) was established by the Parastatal Pensions Act No. 14 of 1978, as amended from time to time, with the objective of providing pensions and other related benefits to all employees in the Parastatal and private sectors of the economy.

Fund’s Coverage
The Fund is the first contributory pension fund in the country operating under defined benefit system. PPF provides social security coverage to all employees in private companies, Parastatal organizations and public institutions. Its coverage has been extended to self employed as well as labour force in the informal sector.

PPF’s Vision Statement
The Fund is desirous of freeing members from hardships arising out of loss of income due to old age, disability, death and the related risks.

PPF’s Mission Statement
The Fund is committed at providing quality pensions and allied benefits to members from both formal and informal sectors through utilization of dedicated human resources and modern technology with high degree of accuracy and promptness.

Major functions of the Fund include registering members, collecting contributions, investing and paying pensions and other allied benefits to its members.

Contribution Rates
Contributions of 20% of each employee’s salary is required which may comprise of 10% for employee and 10% for employer; or 5% for employee and 15% for employer. Contributions are remitted to PPF by the employer within 30 days from the end of each month to which they relate. Late or non remittance of members’ contributions is an offence. A penalty of 5% on any delayed or non remitted contributions is charged by law for each month of delayed contributions.

PPF takes legal measures against any employer who delays members’ contributions or makes false statement/misrepresentation.