Permanent & Pensionable: Civil servants who pay National Social Security Fund have been promoted to permanent and pensionable terms. This promotion started in January 2021 following a direction from the Head of Public Service Joseph Kinyua that was issued in December last year.
This move has also been realigning the payroll for these workers to ensure that employees take no less than a third of their salary.
According to a report that appeared in a local daily, this move was made to facilitate the roll out of the contributory pension scheme by civil servants which will be done through a check-off system. This scheme will see all civil servants including teachers and police officers contribute 7.5 per cent of their basic salary to the Public Service Superannuation Scheme.
“The deductions will start at 2 per cent in the first year; five per cent in the second year and 7.5 per cent in the third year. Employees will have an option to make additional contributions voluntarily above the mandatory 7.5 per cent, while the government will cater to 15 per cent,” the report said.
It further added that the government will not increase its contribution in the event an employee pays above the set threshold. “In this regard, the 31 per cent contributions for staff on secondment will cease, so will be government contributions to NSSF for the lot. Officers who are on extended contracts after retirement will not be part of the new pension scheme as well as employees on contract. Those aged 45 years and above who don’t opt to join the new scheme will remain in the current scheme,” the report said.
Members of the pension scheme will be employees serving on permanent and pensionable terms and aged below 45 years as at January 2021 which prompted the move to have all civil servants on NSSF upgraded to permanent and pensionable terms.