MT ELGON, Kenya, Feb 21 – Retired public servants have been cautioned against engaging non-staff while processing payment of their pension.
Patricia Njahu from the Directorate of Public Service Superannuation Scheme (PSSS) noted that most retirees have lost their retirement dues to conmen posing as brokers who promise to hasten the payment.
Njahu noted that most non-staff lure the retirees seeking to get their pension that they will help them to process the payment quicker and they end up losing a lot of money.
She noted that cases of retired officers getting cheated have been reported hence advised the retirees to ensure that they are served in an office and not along the corridors.
The officer from the pension fund (PSSS) asked members of the public seeking services from their office to ensure that the person serving them has an employment identification card to show they are bona fide employees.
Njahu noted that the purpose of pension is to provide social security in retirement and reduce old age poverty.
She said pension also safeguards the dignity of the pensioner and also facilitates the attraction and retention of employees adding it is very painful for one to lose the money by being lured into crafty deals along office corridors.
And Njahu, while introducing the new pension scheme that was implemented as from January 1, 2021 known as Defined Contribution (DC) said that the current scheme is more beneficial than the previous Defined Benefit (DB).
She noted that DB benefits is based on pre-determined formula and rewards long service while DC benefits is non pre-determined and benefits depend on contribution and return on investment of accrued savings are portable.
Njahu noted that the DC Act was enacted in 2012 but added that it took time to be implemented to allow for consultations among stakeholders hence the scheme commenced on January 1 2021 via a gazette notice by The National Treasury.
“In the new scheme (DC), an employee aged below 45 years as at January 1 2021 serving on permanent and pensionable (P&P) terms, or a new employee appointed on (P&P) as at the commencement of the scheme and employees whose functions were transferred to county governments and are currently covered under the pensions Act CAP 189,” she said.
Njahu pointed out that the scheme (DC) has a number of advantages as compared to the previous (DB) where a lump sum not exceeding one-third (1/3) of the balance in the saving account.
She said a monthly or quarterly annuity for life for the two third (2/3), a monthly or quarterly withdrawal from the fund as calculated by an actuary. “Death members scheme credit and insured benefit up to five times annual basic salary currently provided by the employer,” she noted.
Njahu noted that the scheme (DC) will cover civil servants, teachers employed the Teachers Service Commission and disciplined services.
She called upon persons who are still serving to ensure they start putting their required documents in order immediately they receive a letter from the employer preparing them for retirement and submit them to the human resources early enough to enable them to process pension in time to avoid last minute rush that can lead to being lured by conmen.
Njahu was addressing civil servants drawn from Kimilili, Tongaren, Cheptais, Kopsiro and Kapsokwony sub counties in Bungoma County.
