Converting existing provident funds into pensions is one of the ways employers are cushioning themselves against the enhanced contributions to the National Social Security Fund (NSSF), which are set to double this month.

While these contributions, courtesy of the contentious NSSF Act, 2013, are said to have propelled pension assets beyond the Sh2 trillion mark, they have stretched employers who have to match the enhanced contributions of their employees.

The NSSF Act, 2013 increased the Sh200 standard rate across all income levels that has been in place since 2001 to a graduated contribution amounting to 12 per cent.