By Munene Maina
It is not good news for teachers and police who are among over 500,000 civil servants expected from January 2021 to deduct pension contributions monthly, reducing their salaries by 7.5 percent.
The government is expected to constitute the board of the newly formed Public Service Superannuation Scheme (PSSS), a body that will take care of the civil servants’ pension savings scheme.
Civil servants are expected to contribute Sh. 2.4 billion monthly in remittances to the scheme, amounting to Sh. 28 billion every year.
In a statement, Treasury Cabinet Secretary Ukur Yatani, who will confirm the date when the civil servants will start contributing, said all government employees will now be required to contribute to the scheme.
While civil servants are most likely to oppose the move, the CS noted that the exchequer had been burdened with pension payment when the Covid-19 pandemic has continued to affect the generation of revenue worldwide.
Only private-sector employees in the past have contributed to pension schemes while the civil servants draw their benefits directly from taxpayers’ money.
Yatani said all employees below 45 years of age would be mandatorily required to contribute to the pension scheme. Those above 45 years will have the option to join or not.
Unlike in the past, when civil servants initially contributed two percent of their monthly salary to the scheme in the first year, five percent in the second and 7.5 percent from the third year, they will now be required to contribute the full percent in the first year starting January.
This move is expected to face opposition from workers’ unions who have been vocal in agitating for their members’ rights and often demanding a pay rise.
Recently, teachers received a pay raise.
