Quick Facts about the Mandatory Contributory Pension Scheme As WCPS Halts 
Provident Fund-objectives, coverage, membership, features and benefits

The object and purpose of the Public Service Superannuation Scheme shall be to:

  • Pay retirement benefits to members of the Scheme;
  • Ensure timely payment of benefits to members as and when they become due.
  • Improve the social security of members; and
  • Establish a uniform set of rules, regulations and standards for  the administration and payment of retirement benefits for members of the Scheme.

The Scheme covers the following:

  • Civil Servants;
  • Teachers employed by the Teachers Service Commission;
  • Disciplined Services (National Police Service, Prisons Service and National Youth  Service).

Membership to the new contributory scheme comprises the following categories:

  • Employees serving on permanent and pensionable terms of service and aged below 45 years as at 1st  January, 2021;
  • New employees who join  the service on  or  after 1st  January, 2021 on permanent and pensionable terms of service
  • Employees aged 45 years and above as at 1st  January, 2021 who opt to join the new contributory Scheme;
  • Employees whose services were transferred to the County Government and are currently covered under the Public Service Pension Scheme will be processed as per the above provisions.
Features of PSSS

Defined Contribution

The PSSS is a Defined Contribution Scheme where the Government and employees will contribute to the Scheme to fund the retirement benefits of the employee.

The contributions will be paid into the Fund established and managed under the Act and regulated in accordance with  the Retirement Benefits Act.

Rates of Contribution
  • Employees will contribute at the rate of 5  % of  their monthly basic salary graduated at the following rates: 2% in first  year; 5% in the second year; and 7.5% in the third year.
  • The  Government will contribute 15%  of  the  monthly basic salary in respect of each employee.
  • Employees will have an option to make additional voluntary contributions to the scheme above the mandatory 5% of the basic salary. Where an employee takes this  option, the Government will not increase its contribution.


The benefits under the new contributory Scheme are portable and therefore an employee can   transfer accrued pension benefits from one registered scheme to another irrespective of the sector (private or public).

Read also:
How The Current Pension Scheme Frustrated Teachers And Civil Servants

Current pension scheme (PSPS) versus The new contributory pension scheme (PSSS)

Male Teachers’ January 2021 Salary Scales After Stopping WCPS Deductions

Teachers’ January 2021 Basic Salary Scales After Pension Deductions

Teachers’ Basic Salary Scales After Phase 2 of Pension Deductions

Teachers’ January 2021 Basic Salary Scales After Pension Deductions

Quick Facts about the January Contributory Pension Scheme As WCPS Contribution Ends 

Access to Benefits before Retirement

Members of  the scheme may access retirement benefits earlier than a prescribed Retirement Age  by  reason of  dismisal, resignation,  ill  health,  mortgage  finance, advancement for the purchase of a residential house, immigration, death or any other circumstance as may be prescribed in the Act.

Regulation of the Scheme

The new contributory Scheme shall be regulated by the RBA.

Tax Relief

The Contribution is deducted from the salary before tax  is calculated.

Members can  enjoy tax  benefit to a maximum of the lesser of Kshs.20,000 or  30% of pensionable emoluments.

Life Insurance and Disability Cover

The  Act provides for  a Life Insurance Policy  that has  disability benefits in favour of every member of  the scheme, for  a minimum of  five  times of  the members annual pensionable emoluments.

Terms of Commutation

Under the Scheme a member can   withdraw up   to a maximum of  a third of  the accumulated savings upon retirement. A member can  also withdraw all the additional voluntary contributions with  accrued interest.

Member Involvement

The Scheme ensures involvement of the employees and pensioners in the management of their retirement fund through participation in the Board of Trustees in accordance with  the Act.

Access to contributions to purchase a Residential House

The Retirement Benefits (Mortgage Loans) (Amendment) Regulations 2020 provides for a member to access up to 40% subject to a maximum of Kshs.7million of accumulated contributions to purchase a residential house.

Benefits provided by the scheme


The following benefits are payable at retirement as per the provisions of this  Act;

  • A member may take a lump sum not exceeding one third of the balance in retirement savings account. However, additional Voluntary Contributions made into the Scheme and the accrued interest can be withdrawn in full.
  • A monthly or quarterly annuity for  life purchased from a life insurance company of a member’s choice;
  • A monthly or quarterly withdrawals calculated by an actuary on the basis of life span and paid from the Fund.

Death in-Service

In the event that a member dies whilst in Service before Retirement, the following benefits will be payable to the beneficiaries:

  • A member’s scheme credit;
  • The insured benefit of up to five times the annual pensionable.  NEXT

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