Teachers to lose 2% of Basic pay to the pension scheme in January

Teachers and civil servants who are below the age of 45 years shall contribute a fraction of their basic salary to the retirement scheme beginning January 2021.

Teachers and other workers of the government are set to lose 2% of their basic pay on their January payslip to cover the pension scheme.

The 2% amount will rise up to 5% next year (2022) and then 7.5% in 2023, with the government topping up savings at the rate of 15%.

It should be noted that it is only teachers and civil servants of age below 45 years who will begin contributing to the mandatory scheme. The scheme is already gazette.

Most teachers may not feel the effect of the deduction with their payslips expected to pay teachers their annual leave at the same time, in this January rollout of pay. Civil servants receive their annual leave allowance every year in December.

On the same note regarding teachers’ pay, the Government of Kenya has terminated COVID-19 tax relief and teachers and civil servants shall have their PAYE reverted to 30% from the 25% that has been all along.

Documents TSC need to process your pension (for teachers)

In another article, we had discussed the documents but let’s give a list of items TSC needs to process your pension in this article.

Two copies of bank plates (both sides).
Duly filled TSC clearance certificate.
Two copies of the national ID card (both sides).
Two copies each of all promotion letters/certificates.
The earliest copy of the payslip showing the Women’s and Children’s Pensions Scheme (WCPS) deductions for male teachers.
Teachers who served as Untrained Teachers to attach NSSF statement.
Copies of marriage certificates/affidavits to confirm names for married teachers whose documents have different names.
Duly completed option to commute pension form in duplicate.
Duly completed lump sum payment form (bank form)

Employees of age 45 years and above will have the option to join the scheme by filling the Public Service Superannuation Scheme option form.

Records on the current service pension scheme show that in Kenya there are 128, 000 police and prison staff, 375,000 teachers, over 270,000 pensioners, and 75,000 dependants.

Employees attached to ministries and State agencies will contribute a fraction of their salary to the newly created Public Service Superannuation Scheme (PSSS).

Set-to-be Kenya’s biggest pension scheme shall be receiving Sh 2.4 billion monthly which is roughly Sh 28 billion to the fund.

CS Yatani said that the Pension is intended to reduce the burden that the exchequer bears, more so with COVID-19 still with us and is causing a global economic recession.

Civil servants and teachers will see their pensions paid from their taxes as has been the case.

Download free Education Materials Below

Teachers to lose 2% of Basic pay to the pension scheme in January

Documents TSC need to process your pension (for teachers)

Download free Education Materials Below

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