Some things make you loathe getting old and retiring. One of them is the uncertainty of how life will end up being—will you have people around you? What will my health be like, etc.? These are questions we cannot easily answer. The other issue is the motivation behind my script: a pain point. Getting your pension from NSSF and other pension schemes. Fortunately, I have a remedy, should the relevant parties borrow a leaf from my books of vast wisdom.
Getting a pension from pension schemes is, in the most polite of words, difficult. Take, for instance, the National Social Security Fund (NSSF) in Kenya. NSSF has been grappling with significant backlogs: the NSSF struggles with general administrative bottlenecks, particularly in the manual verification of contributions, the processing of claims, and addressing discrepancies in member data. These inefficiencies contribute to the overall slowdown in service delivery. Additionally, the NSSF has been slow in updating and processing member contributions. This has been exacerbated by the recent changes in contribution rates following a Supreme Court ruling in 2023. Many employers and employees have experienced confusion and delays as they adjust to the new tiered system of payments.
At the core of all this, we find a critical issue: the shortage of labor at the NSSF. The labor shortage doesn’t just strain the organization’s ability to manage its growing workload, but it also affects the overall efficiency of its operations. Processing claims, verifying contributions, and addressing discrepancies have become drawn-out affairs, leaving many retirees in a state of uncertainty as they wait for their hard-earned benefits.
Now, indulge me for a moment—what do you think would happen if the NSSF decided to outsource its staff? Imagine the transformation.
Streamlined Operations: Instead of grappling with a staff that is overstretched, NSSF could partner with professional outsourcing firms that specialize in handling high-volume administrative tasks. These firms would bring in skilled labor capable of processing claims, contributions, and verifications swiftly and accurately. That backlog, which seems to pile higher every day, would begin to shrink.
Greater Scalability: With outsourcing, the NSSF could scale its operations on-demand. When there’s a spike in workload—such as during changes in contribution regulations—outsourced teams can quickly be brought in to manage the extra volume. This flexibility is something that internal staffing struggles to provide, especially when bound by budget constraints and bureaucratic red tape.
Faster Turnaround Times: Outsourcing firms often have access to advanced technology and processes that streamline administrative work. Automated systems and trained specialists can process claims and contributions faster than traditional in-house teams. Imagine how quickly retirees would start receiving their pensions if claims were processed in days instead of months.
Focused Internal Teams: By outsourcing administrative tasks, NSSF’s internal teams could shift their focus to higher-level priorities like policy development, member engagement, and service improvement. This would create a more strategic workforce, allowing NSSF to build stronger relationships with contributors and retirees.
Outsourcing may not solve every issue, but it could be the remedy NSSF needs to get its house in order. The backlog? A relic of the past. The delays? Reduced to a memory. And the people who’ve spent years contributing to the system? Finally getting the smooth, timely service they deserve.
Let’s not kid ourselves—retirement should be about peace of mind, not endless waiting. It’s time for the NSSF to consider bold moves, and outsourcing might just be the answer.
+ There are no comments
Add yours