The public service superannuation Scheme Act, 2012 (the Act) was enacted as part of Government reform initiatives in the pensions sector. The Act established the contributory Public Service Superannuation Scheme (PSSS) in line with the policy direction issued by Government through the National Treasury Circular No. 18 of 2010

The object and purpose of the Scheme shall be to, pay retirement benefits to members of the Scheme, ensure that every member of the Scheme receives his retirement benefits as and when they become due and assist to improve the social security of members of the Scheme by ensuring that the members save in order to cater for their livelihood during their retirement.

To add on the scheme will establish a uniform set of rules, regulations and standards for the administration and payment of retirement benefits for members of the Scheme.
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Employees will contribute 7.5% of their basic salary by 2023 January.
The rate of contribution is being graduated at the following rates: 2.5% in 2021(first year), 5% in the second year (2022) and 7.5% in the third year (2023). Employees will have an option to make voluntary contributions above the mandatory 7.5% of their basic salary. The employer will contribute 15% of the employee’s basic salary. Employees will contribute 7.5%> of their basic salary by 2023

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That implies that most teachers will pay around sh. 1500. Atleast each member will pay sh. 5500 cumulatively. The teachers are not happy with the way the scheme is being handled. They claim they were hit by corona pandemic economically. The Government should have postponed the deductions and wait until the economy thrives again. Alternatively could have cushioned them through financed CBA not the maternity one as it is currently.
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