unclaimed financial assets – a source of funding for social protection ppt to ps gender & social...
TRANSCRIPT
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
1/12
By Mr. Joe K. Ngigi - Unclaimed Property Assets
Register (K) Limited
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
2/12
Introduction The Unclaimed Financial Assets Bill 2011 Why Unclaimed Assets is a solution to social
protection Models that would be of Interest to Kenya Possible structuring of the unclaimed
financial assets regime to support social
protection The Way Forward Questions & Answer End
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
3/12
Unclaimed property is a term that refers to assetsthat have had no owner-generated activity for adefined period of time.
Financial asset types include uncollectedInsurance policy benefits, Quoted companiesdividends and share scripts, Utility deposits inenergy and water firms, Deposits in banks andsaccos to mention a few (I,Q,P,U,D)
A GoK Ministry of Finance Taskforce in 2008estimated the overall figure of unclaimedfinancial assets to be in the range of Kshs. 38.4Billion and Kshs. 81 Billion in the private sectoralone;
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
4/12
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
5/12
Compels holding institutions to identify,segregate, report and manage these assetswith regulatory oversight
Provides for reunification mechanism forclaimants before their transfer to aprofessionally managed, Central Reclaim
Fund; Offers Government a significant non-tax
revenue opportunity for Vision 2030projects and initiatives
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
6/12
The target has been mainly those in formal employment,making their contribution to the National Social SecurityFund to cater for their retirement;
Public sector workers have been on a defined benefit
scheme. A defined contribution system was mooted andhas been in the pipeline for a while, and itsimplementation is one that GoK is grappling with at themoment
Extension of the retirement age is in part due to lack of
resources to sustain the defined benefit scheme; Direct remittances introduced to the most vulnerable
group (the aged), but given the economic conditionscurrently, the values remitted to each individual may not
have real impact in terms of making ends meet
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
7/12
A continuous stream of investment income, giventhat almost 70% of these funds will never bereclaimed;
A critical component that safeguards socialprotection programmes from consolidatedfunding that may become non-priority due toeconomic downturns (shocks such as the Kenyan
shilling devaluation).Note:Our proposed suggestion is that a percentageof the income realized from the Trust Fundsinvestment be allocated towards curative socialProtection programmes
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
8/12
REPUBLIC OF IRELAND
Unclaimed Assets managedby the National Treasury
Management Agency Social protection in terms
of health, the aged andhealth allocated 10% of theinvestment income fromthe Trust Fund
Some of these fundsallocated to programmes inthe developing economies Asia, the Middle East andAfrica
THE US SOCIAL SECURITYSYSTEM Every individual has a social
security number which is alsoa point of reference foreverything tax returns,immigration, etc.
Unclaimed property managedby the State Treasurers office.States like Florida have usedunclaimed property toenhance and upgrade the
public school system. Inexcess of US $ 1.6 Billion hasbeen injected into theeducation system to make itcompetitive.
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
9/12
Social infrastructure a critical deliverymechanism for Vision 2030 overall goal of
attaining middle-income country status; A fixed % of investment income from the
Trust Fund (say between 5.0 to 7.5%), beallocated towards sustainable health,education and housing needs andpriorities to the disadvantaged andvulnerable groups.
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
10/12
Insist on the literate (professionals, civil service, businessexecutives) to ensure succession planning through thewriting of wills and accurate record-keeping of their assets(preventive social protection)
Advocate and lobby for the inclusion of social protection
initiatives as a beneficiary of the investment income of theUnclaimed Assets Trust Fund for the publicgood of allcitizenry (curative social protection);
Persuade and engage stakeholders for augmenting the
resourcing of social protection initiatives. Developmentpartners models that have been successful such as those inthe Scandinavian economies need to be reviewedalongside the gains and benefits that would accrue fromunclaimed financial assets (sustainable social protection
model replication)
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
11/12
-
7/28/2019 Unclaimed Financial Assets A source of Funding for Social Protection PPT to PS Gender & Social Development Dr. James Nyikal 09.11.2011
12/12
Contacts:Mr. Joe K. NgigiChief Executive
U.P.A.R (K) LimitedP.O. Box 55229 00200
City Square,NAIROBI.
Office Tel: +254-20-8013977Cell Phone(s): +254-723-274883/789-274883
E-mail:[email protected]
mailto:[email protected]:[email protected]:[email protected]