PSC Rejects Claims That New Pension Scheme Created Discriminatory Dual-Pension System

The Public Service Commission (PSC) has dismissed claims that Kenya's shift from the Defined Benefits Scheme to the Defined Contribution Scheme has created a discriminatory dual-pension system for public servants. Speaking before the National Assembly's Public Petitions Committee, PSC Deputy Chief Executive Officer Gerald Kuhaka explained that the transition aimed to give eligible public officers a choice in their retirement arrangements.

Under the Public Service Superannuation Scheme (PSSS), officers aged above 45 years were given the option to join the new contributory scheme or remain under the existing Defined Benefits Scheme. Those who chose to remain under the Defined Benefits Scheme did so voluntarily. The PSC addressed concerns raised by the Kenya National Association of Public Service Pensioners, who argued that the new framework created an unfair dual-pension system.

The petitioners also raised concerns over the commutation of one-quarter of pension benefits, the lack of periodic actuarial reviews, delays in accessing death benefits, and the need for pension increases and a comprehensive review of the Pensions Act. Kuhaka informed the Committee that the National Treasury had formed a Multi-Agency Task Team in 2024 to review pension laws, which is still ongoing.

The review process will undergo the normal legislative procedure, aiming to address pension concerns.