Proposed Contributory Pension Scheme:
The government proposes a public servants superannuation scheme.
- This is a defined pension benefit scheme where both the employer and the employee contribute certain proportions towards pension benefits.
- It is mandatory for those joining service and those below 45 years.
- Those above 45 years can opt to join.
Benefits of the proposed contributory Pension scheme
An employee can transfer pension benefit credits from a former employer to another with a similar Pension scheme.
- The scheme allows employees to access part of their benefits even before the mandatory retirement age.
- Teachers joining the scheme from non-contributory pension scheme will have their past benefits transferred to the new scheme.
- Widows and Children’s Pension Scheme (WCPS) and NSSF contribution will cease immediately an employee joins the scheme.
- Those who remain in the free Pension Act will be bound by the provision of the Pensions Act cap 189.