Public Service Superannuation Scheme (PSSS) Retirement for TSC teacher 2023

Pension schemes in Kenya. The government has operated a non-contributory pension Scheme under the Pensions Act cap 189 since independence fully financed through the Exchequer

Cap 189 offers benefit upon;

• Retirement
• Death –death gratuity, Dependents pension marriage Gratuity, Killed on Duty pension and injury Pension,

As part of the reforms in the public Service pension Sector, the Government enacted the public service Superannuation Scheme Act, No 8 of 2012.

The act established the Public Service Superannuation Scheme (PSSS) hereinafter referred to us as the new contributory Scheme in line with the policy direction issued by the Government through The national Treasury Circulation No 18 of 2010.

The Government directed the conversion of all Defined Benefit (DB) scheme in the Public Sector to Defined Contributory (DC) Schemes.

Pension schemes in Kenya.

The objective was to align public service pension schemes with best practices in the retirement benefits industry.

The Public Service Superannuation Scheme (PSSS) commenced  ON 1^ST January,20217.

LEGAL FRAMEWORK OF PASS

The provision of pension and the related retirement benefits to Public Savants covered under the Public Service superannuation Scheme are governed by the following statutes and regulations.

1. The public service superannuation Scheme Act, no 8 of 2012
2. The Retirement Benefits Act, No 3 of 1997;

• Human Resource Manuals/code of Regulation;

1. Other attendant’s statutes and regulations.

OBJECT AND THE PURPOSE OF THE PASS 

The object and the purpose of the public service Superannuation Scheme shall be to;

1. Pay retirement benefits to the members of the scheme,
2. Ensure timely payment benefits to the members as and when they become due

• Improve the social society of members; and

1. Establish a uniform set of rules, regulations, and standards of the administration and payment of retirement benefits for members of the scheme.

PASS COVERAGE

The Scheme covers the following:

1. Civil savants
2. Teachers employed by the Teachers Service Commission
3. Disciplined Services (National Police Service, Prison Service, and National youth service)
4. Any other service that the cabinet secretary or national treasury may declare to be part of PSSS

PASSS MEMBERSHIP

Membership to the new contributory scheme comprises the following categories:

1. Employees serving on permanent and pensionable terms of service and aged below 45 years as at 1^st January 2021;
2. New employees who join the service on or after 1^st January 2021 on permanent and pensionable terms of service;
3. Employees aged 45 years and above as at 1^st January 2021 who opt to join the new contributory scheme;
4. Employees whose services were transferred to the County Government and are currently covered under the Public Service Pension Scheme will be processed as per the above provisions.

Read also; TSC EXTENDS RETIREMENT AGE FOR THE FOLLOWING CATEGORY TEACHERS

FEATURES OF PSSS

1. Defined contribution

The PSSS is a Defined Contribution Scheme where the Government and employees will contribute to the Scheme to fund the retirement benefits of the employee.

The contributions will be paid into the Fund established and managed under the Act and regulated in accordance with the Retirement Benefits Act.

Public Service Superannuation Scheme (PSSS) Retirement for TSC teacher 2023

Rates of Contribution

• Employees will contribute at the rate of 7.5% of their monthly basic salary graduated at the following rates: 2% in first year; 5% in the second year; and 7.5% In the third year.
• The Government will contribute 15% of the monthly basic salary in respect of each employee.
• Employees will have an option to make additional voluntary contribution to the scheme above the mandatory 7.5% of a basic salary. Where an employee takes this option, the Government will not increase its contribution.

       Portability

The benefits under the new contributory Scheme are portable and therefore an employee can transfer accrued pension benefits from one registered scheme to another irrespective of the sector (private or public).

Pension schemes in kenya

      Access to Benefits Before Retirement

Members of the scheme may access retirement benefits earlier than a prescribed Retirement Age by reason of

dismissal, resignation, ill health, mortgage finance, advancement for the purchase of a residential house, immigration, death or any other circumstance as may be prescribed in the Act.

See also; BREAKING NEWS! GOVT CHANGES MID-TERM DATES FOR ALL SCHOOLS