LUGARI, Kenya, Feb 25 – Civil servants in Lugari and Matete have been encouraged to increase their monthly savings under the Public Service superannuation Scheme (PSSS) in order to earn more when they retire.
An officer from the scheme Ms. Phelis Mwaura advised young civil servants and those over 45 years who voluntarily joined it, to increase contributions as they stand to reap benefits when they retire as compared to the old pension scheme.
Mwaura who was speaking during a sensitization forum for civil servants in the new pension scheme at Lumakanda in Lugari Sub County on Friday said the PSSS has more accruing benefits at retirement hence civil servants should embrace and own it.
“If you have the ability to save more don’t hesitate. You will requiremore money when you retire than now when you are still in the service,.” she said.
She said under PSSS, a member benefits at retirement based on the scheme credit and investment income as opposed to the earlier scheme where the amount to be paid to a retiree was determined based on a formula that took into consideration the length of service and the annual basic salary at the time of retirement.Jacinta Wanjiru also from the scheme said civil servants need to prepare for retirement while still in the service so that when they go home they don’t become a bother to their families and the community.She said some individuals have been retiring and ending up poorer than when they were in the service because they never planned for it when they were still working.Lugari Assistant County Commissioner One, Mr. Evans Otieno said the sensitization campaigns across the country have been long overdue as the scheme is now at its third phase of implementation.Otieno however, said the scheme is the best gift for civil servants who have been retiring without anything tangible to take home and challenged the youthful civil servants to increase their contributions owing to the scheme’s future benefits.The Public Service Superannuation Scheme which came into force on 1st January 2021 and is now at its third phase of implementation. Defined Contribution Scheme where the Government and the employees will contribute to fund the retirement benefits of the employee.As from January 2023 employees are contributing 7.5 percent of their monthly basic salary while the Government is contributing 15 percent of the monthly basic salary in respect of each employee.Under the scheme employees have an option to make additional voluntary contributions above the mandatory 7.5 percent of the basic salary although the government is exempted from additional contribution.
