Kenya: Retirees to Get Pension a Month After Job Exit

Kenya: Retirees to Get Pension a Month After Job Exit

Public service workers will from the year beginning July 2021 start getting pension payouts a month after they retire in a plan the Treasury says will ease financial challenges they endure in early stages after they exit employment.

The Treasury says it has hired about 100 new staff to expedite payment of retirement benefits by initiating the process before civil servants, teachers and disciplined service officers – police, military and prisons – exit the service.

Director of pensions at the Treasury Michael Kagika said his staff are being seconded to the offices of state ministries, departments and agencies with high turnover of retirees to authenticate and verify data before government employees retire.

“Processing claims remains one of our foremost concerns because we do not want persons who retire to wait for unnecessarily long time before they can access their pension,” Mr Kigaki said.

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Pension payroll

“The commitment we have given ourselves is that by the turn of the financial year (starting July 2021), we want everybody who retire to access his pension the next month, meaning you are on salary payroll this month and the next month you should be on our pension payroll.”

This comes at a time the Treasury has started creating awareness on transition to a contributory retirement plan next month from the current defined contribution scheme.

The new pension scheme is being implemented more than eight years since the Public Service Superannuation Scheme (PSSS) Act became law.