Treasury and TSC Plans to roll out public servant Superannuation scheme PSSS act 2012 which was assented but was never effected.
The contributory pension scheme will see teachers lose 7.5% of their pensionable pay towards the kitty from January next year 2021.
A closer look at the features of the scheme on TSC website reveals how some teachers are going to experience painful pay deductions in a bid to fund their pensions where as others will walk out Scot free.
Now who are the winners and losers when this juggernaut starts rolling?
Number one winners are teachers who would want to go for early retirement. For this category of teachers, they will be allowed to access their benefits before reaching the mandatory retirement age. This will be a departure from the current Scheme which doesn’t allow teachers who retired voluntarily to access their benefits before they reach retirement age.
Number two winners are teachers above the age of 45 years who have an option of joining or not. Otherwise, they remain with free pension that public Servants have enjoyed since independence.
Number three winners are male teachers who are set to gain from stoppage of widow child pension scheme. WCP scheme has only been paid by male teachers since independence as their female counterparts laugh all the way. Male teachers are likely to save upwards of ksh 700 per month.
Losers are teachers under the age of 45 years. For this category of teachers, all other pension benefits will be transferred to this new kitty that they will join compurisorily.
Another set of losers are other pension schemes like National social service funds ( NSSF). Funds that employees had contributed to NSSF will be transferred to PSSS leading to much financial haemorrhage.
What are your views on this new Scheme? Share your thoughts and comments on this.