The main purpose of retirement benefits is to ensure that when individuals step back from active employment, they have an income to keep them going. This may be due to attainment of the prescribed retirement age or any other circumstances such as physical or mental disability that may incapacitate a member partially or totally. Under such circumstances, a member is entitled to access their retirement benefits from the scheme they subscribe to. 

Other circumstances under which a member may access their retirement benefits include emigration and death. A member may also have mid-term access to their NSSF savings if they attain 45 years and have been saving with the fund for a period of ten years.

While many members and their dependents, qualify to access their benefits, it has been observed that many don’t, creating a good number of cases of unclaimed retirement benefits.

Addressing a recent webinar to address the matter of unclaimed retirement benefits, the URBRA Senior Legal Officer, Ms. Doris Kahuura observed that many of the complaints handled by URBRA are related to unclaimed benefits.

One wonders, what causes this backlog? How come people do not immediately dash to their schemes to withdraw what is duly theirs? Is it a lack of knowledge and vigilance on the part of members or their dependents?

URBRA organized a webinar to discuss the issue of unclaimed benefits with a view to explain to the public the causes and solutions.

What are unclaimed benefits?

Unclaimed benefits are funds that are rightfully owed to individuals or their beneficiaries but have not been paid to them, these can represent a lifetime of savings or contributions such as retirement savings and pension plans.

Ms. Rusoke added that in line with URBRA’s mandate of supervising, regulating and promoting the development of the retirement benefits sector, URBRA ensures members rights are protected and have a right to their savings upon reaching retirement age.

During the webinar session, participants raised concerns about the fate of these unclaimed benefits, questioning where these funds are allocated and how they are utilized by the schemes further inquiring about the measures put in place by URBRA to ensure that these benefits are not misappropriate but rather returned to their rightful owners for their good.

According to Ms. Rusoke, failure to claim one’s benefits has far-reaching consequences that can hinder prospects for the dependents while preventing the actual retirees from living comfortably in retirement due to financial hardships.

How do unclaimed benefits arise?

These unclaimed benefits may arise due to many circumstances;

• Where members do not provide the fund with theirs and their beneficiaries’ updated contact details.
• Employers do not provide the scheme trustees and administrators with comprehensive details concerning members of the scheme.
• Inadequate administration and record keeping by scheme administrators. Administrators may lack robust systems to capture relevant member data.
• Insufficient mechanisms to enable foreigners leaving the country after the expiry of their work permits claim their benefits from their home countries and get paid in those countries and many more.
• Beneficiaries lack information because members do not inform them about the benefits payable and which institution to contact.
• Trustees fail to trace and pay the beneficiaries to the unclaimed benefits. This is usually as a result of records that are not up to date.
• Nature of exit e.g. members who are dismissed for causing financial loss may not be cleared by employers.

How to reduce incidents of unclaimed benefits

First of all, there is need to create awareness. Many have not claimed their due benefits because they are unaware of their entitlement. This especially applies to beneficiaries who are supposed to claim survivors’ benefits. Trustees should circulate lists of members with unclaimed benefits through mass circulation, media platforms with authorization from URBRA. Members should avail relevant information to their respective schemes and ensure that it is regularly updated. Administrators should have robust systems which can capture all relevant data about members and their nominated beneficiaries.

Any one who suspects they might have unclaimed benefits, Ms. Rusoke recommends that they obtain a copy of the scheme trust deed and rules, submit claim forms and all relevant documentation to scheme trustees.

For public service, follow up with the vote’s Human Resource Officer six months before the date of your retirement, fill in the necessary forms for gratuity and pension.

URBRA urges everyone to be an active and informed member of their respective scheme, keeping track of their savings and when they are due for claiming. This way, all members will enjoy what is dully theirs, and cases of unclaimed benefits will be reduced significantly.