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Teachers oppose deductions to new pension scheme

Monday July 10 2017
SOSSION

Kenya National Union of Teachers Secretary General Wilson Sossion at a past event. Teachers have rejected deduction of 7.5 per cent of their salaries towards their new pension scheme starting this month. PHOTO | WILLIAM OERI | NATION MEDIA GROUP

By OUMA WANZALA

Teachers have rejected deduction of 7.5 per cent of their salaries towards their new pension scheme starting this month, saying they had not been consulted.

Other civil servants said even though they support the idea, it should be implemented with caution as no mechanisms have been put in place to safeguard their money.

Kenya National Union of Teachers secretary-general Wilson Sossion said while teachers agree that the Pension Act has been in place since 2012, they are not aware of the existence of the benefits of the scheme.

SCHEME

“We hereby demand you do not implement this scheme or proceed to deduct any money from teachers until we have a meeting to concur on the implementation modality and commencement date,” said Mr Sossion in a letter to Teachers Service Commission (TSC) CEO Nancy Macharia dated July 5.

READ: CS: Implementation of pension scheme to start soon

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In the letter, copied to Cabinet secretaries Henry Rotich (National Treasury) and Fred Matiang’i (Education) as well as Chief of Staff and Head of the Public Service Joseph Kinyua, Mr Sossion warned that any implementation of the scheme would be construed to be taking away the benefits teachers have enjoyed all along.

PENSION

However, sources at the TSC told the Nation that there is no official communication on the rollout of the scheme.

Director of Pensions Shem Nyakutu last week told the Business Daily that the new scheme would commence at the end of July, coinciding with the salaries review to avoid reducing the civil servants’ pay.

Former Retirement Benefits Authority CEO Edward Odundo has been appointed chairman of the board of trustees of the new scheme.

Kenya’s State employees have since independence enjoyed a benefit scheme that is fully paid for by taxpayers through the Consolidated Fund.

Union of Civil Servants of Kenya secretary-general Tom Odege said the contributory scheme is long overdue. He, however, said: “They have not told us where they will keep the deductions and if they will keep part of their bargain.”

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