The Government is developing a regulatory framework to manage the newly established Public Service Superannuation Scheme (PSSS) to conform to the law and become fully operational.
The Government is therefore seeking views from public servants and the general public on the PSSS Scheme (Amendment) Bill and draft regulations 2024 to fully operationalise the Scheme.
The Chief Executive Officer (CEO) of the Fund, Jonah Ayabei, said the government was keen to update existing laws to provide for a regulatory framework that will guarantee better savings plans for public servants’ retirement.
The CEO was speaking in Kakamega during a public participation forum organized for public servants drawn from the counties of Kakamega, Vihiga and Busia on the Public Superannuation Scheme (Amendment Bill 2024 and the PSS Regulations 2024.
Ayabei said as part of the reforms in the public service pensions sector, the government established the Public Service Superannuation Scheme where the Government and employees contribute
to the Scheme to fund the retirement benefits of the employee.
PSSF members, who include the National Police Service (NPS), the Teachers Service Commission (TSC) and the Public Service Commission, contribute 7.5 percent of their basic salaries to the Fund, while the employer matches the remittance with a 15 percent salary contribution.
The chairman of the Board of Trustees of the Public Service Superannuation Fund (PSSF) Wycliffe Wangamati, said the non-contributory pension scheme wholly financed by the government since independence through the exchequer has piled a lot of financial burden to the government, with a significant number of retirees facing challenges accessing it.
‘The old pension scheme has over the years been grappled with the issue of inadequate funding from the exchequer unlike the current contributory scheme where there is assurance of payment within two weeks’ time after retirement of an employee dues’, he assured the participants.
Reacting to members’ concerns, Mr. Wangamati said the t
wo schemes will not be amalgamated but will operate as separate entities.
The chairman told the members that they will be able to access retirement benefits earlier than prescribed retirement by reason of dismissal, resignation or any other reasons.
Western Regional Commissioner Irungu Macharia asked civil servants to embrace the new model of pension, saying unlike in the previous scheme, they can track their contributions online.
Jacqueline Manani, the Director Legal Services at the Public Service Commission said while the Government enacted the Public Service Superannuation Scheme Act, in 2012 with the new scheme becoming effective 1st January, 2021, there have been no regulatory framework to guide the scheme.
She said the Scheme membership consists of all officers aged below 45 years as of January 1, 2021.However, some officers aged above 45 years opted to join the scheme voluntarily.
‘To date we have 443,000 members and all employees will be automatically eligible to join the scheme if they are appoi
nted on permanent and pensionable terms,’ she added.
Chief State Counsel in the Office of the Attorney-General Catherine Ochanda said the objective of the process was to align the public service scheme with the law in line with the Retirement Benefit Authority Act.
The Bill is also proposing that the Public Service Superannuation Scheme Fund be managed by a board.
Public servants at the forum called on government to appoint members of the fund to the board to ensure they protect their assets.
They also called on the government to stop further deductions of their pay towards the Widows and Children Pension Scheme as well as the National Social Security Fund now that the new fund is operational.
‘These deductions should stop; they now serve no purpose,’ said Arnold Mandela
The officers also called for assurance that the scheme will be run transparently and that they be paid their benefits on time.
Government pension and gratuity bill rose to a record Sh148.98 billion by June 30, 2023, placing a huge burd
en on the exchequer.
Source: Kenya News Agency