Public service workers whereby teachers and other civil servants will start pension payouts a month after they retire. This will commence as of July 2021.
This is following a plan by the treasury to ease the financial challenges they experience in the early stages after they exit employment with TSC.
According to the treasury, they hired around 100 new staff to expedite payment of benefits by initiate the process before civil servants, teachers, and disciplined services officers – this being military, police, and prisons – leave the service.
Director of pensions at the Treasury, Michael Kagika revealed that his staff undergoes seconding to the offices of state departments, ministries, and agencies that have a high turnover of retirees to authenticate and verify the data before employees of the government retire.
“Processing of claims is one of our very important concerns. This is because we do not want persons who retire to wait for a long time, unnecessarily before they can access their pension,” added Mr. Kigaki.
Pension Payroll
“We have given ourselves the commitment of turning the financial year (starting July 2021), we want everybody who retires to access his pension a month after retiring. This means that you are on the payroll in one month and on your pension payroll in the following month,” said Mr. Kigaki.
This has happened amid the Treasury creating awareness on the transition to a contributory retirement plan in the following month from the current set contribution scheme.
The new pension scheme is undergoing implementation for over eight years since the Public Service Superannuation Scheme (PSSS) Act became law.
Public Service workers who are of age below 45 years shall contribute two percent of their pay to the retirement scheme in 2021. This rises 5 percent in the following year and at the rate of 7.5 percent after that and the government tops the savings at the rate of 15 percent.
Interest on Delayed Pension Dues
Civil Servants who are of age 45 years and above shall have to apply to join the PSSS. The Retirement Benefits Authority (RBA) will regulate this within three months after the date of starting in January.
In the new regime, delayed payment of the pension due will attract interest every month.
Mr. Kagika said that the treasury has seconded 31 pension staff to the Teachers Service Commission (TSC) together with six other officers whom they seconded to the Vigilance House for the police.
TSC is the largest employer in the public service.
The Director of pensions also revealed that the ministries of Health and Agriculture will also experience the same arrangement.
Seconded pension staff shall be helping in verifying, correcting, and add any missing data in the files of retiring officers before forwarding to the treasury for payments after processing.
“It is crucial to hold the dignity of persons who have committed their entire work working life to the public service.
“You do not want to come all the way from Turkana, in the name of following up on your pension in Nairobi when you should be enjoying your retirement and your bank do the task of notifying that you have received your money,” added Mr. Kagika.
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