Kenya’s public pension expenditure has increased so tremendously and has succinctly weighed in so heavily on the taxpayers money. The Government has therefore been forced to trudge painfully on a non-funded payment model for all public servants including teachers that is fully funded by the exchequer.
The employees who have tirelessly worked for the Government for so many years at least 50 years and above are compensated by a well-defined scheme called the Retirement Benefits Authority (RBA) which solely depends on the duration of active service rendered vis-a-vis the last maximum salary at retirement.
Historically, the legal provision protecting all pensions in Kenya is captured in the Pensions Act Cap 189 was inaugurated by the colonial government in 1927 which was strictly reserved for the Europeans then but was adjusted to accommodate non -Europeans in 1932.The act has been repeatedly amended from time to time to suit the changing demands.
It clearly stipulates that, “If you are confirmed in your appointment, you will be eligible for retirement benefits upon attaining the desired age outlined in the provisions legislations of the public service of Kenya”.
The entire world is muttering under the weight of this difficult policy and is therefore steadily transitioning from a fully exchequer funded scheme to a well stratified contribution scheme to reduce the heavy weight on the taxpayer.
To a wider extent, it summatively means that because of the bulging demand, most government’s will reach a suffocated point and will be completely exhausted thereby be unable to facilitate the regular lump sum and monthly stipends to its citizens.
The recently well-orchestrated Kenya’s pensions and provident fund initiative by the government demands accolades from all Kenyans of good will and should be supported without any reservations to make the payment for pensions tenable.
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It’s however unfortunate to learn that most retirees are subjugated in a quagmire of tears and sorrow over the perennial delay of their gratuity not forgetting the number of years they diligently served with dedication to the government.
They do wonder why they were revered while they were in service under sweat and toil which soon after goes down the drain. Some having served as dedicated head teachers, doctors, auditors, accountants, among many other professions and thus wallowing in a state of uncertainty and possibly abject poverty.
Pensions in Kenya are categorised into, service pension, service gratuity, marriage gratuity, injury pension, death gratuity, dependants pension, compassionate gratuity and annual allowance.
After certification of all requisite documents, calculations are carried out by following Pensions Act regulation 4 which is computed hand in hand with the months completed in service multiplied by annual salary and divided by four hundred and eighty-(months multiply annual salary divide by 480)
The recent audit report tabled by Auditor General tabled in Parliament revealed and wondered why the department could not address the identified gaps in payment of the pension dues within the stipulated time by law.
The gaps identified by the pensions department included errors or omissions, missing documentation, lack of keenness from receiving officers or possibility of loss of supporting documents absolving the treasury from the blame.
There should be a lot of seriousness in the processing and handling of pensioners files and the same has to be done within the regulated time of 21 days.
Pensioners have to be handled with utmost decorum just the same way they were in active service, they have to be meaningfully important noting that some require specialised medical attention. Like any other parent, they should meet their parental obligations all the time.
A more active and robust body has to be put in place to ensure that all the retirees go home honourably with their dues without any reservations.
The archaic traditional bureaucratic model and delay processes have to be a thing of the past.
It’s necessary to note that what is grossly bedeviling the process is inadequate knowledge of what is required and absence of a well-defined induction system for the would be pensioners that can establish a smooth transition from active service to retirement.
It’s wrong to tell a worker that your services are no longer needed as has always been the case.
The auditor’s report has also unearthed inefficiencies at the national treasury’s pensions department that have resulted in delayed processing of the retirement benefits.
According to the chairman and CEO of Retirement Benefits and Claims Welfare (RECLWA-K,) retirees who were on a non-contributory pension scheme go through myriad challenges which require good will and professional ethics of senior officers at the pensions offices.
It’s also a matter of great importance to note that presidents, members of parliament, military personnel, civil servants and teachers are all affected in this challenge. Some savings and credit societies and other welfare organisations also frustrate public servants in the same way.
The audit report has still revealed that the Pensions Management Information systems (PMIS) lack procedures to identify deceased pensioners and dependants. They also delay in the operationalisation of the contributory pension scheme which has consequently been blamed for the delays in the payment of claims.
It’s thus unimaginable to note that some workers who retired long time ago have taken even ten years to have their dues processed. All of us therefore need to cooperate to resolve the challenge that has made many retirees suffer in silence.
By Hillary Muhalya
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