Pensions Department

Pensions

Mission

To ensure the timely, efficient and effective payment of pensions, gratuities and other benefits to eligible employees of the Kenyan Public Service so that they enjoy a dignified and secure livelihood when they leave the Service.

Vision

Timely, efficient and effective compensation for past service in the Kenyan Public Service
The Pensions Department operates under the Ministry of Finance and administers the Government’s public pensions policy.

Department’s Mandate

  • Processing and payment of pensions, death gratuities and other benefits to retired, deceased or terminated officers in the Public Service as well as their dependants and legal representatives. This includes former East African Community personnel and those with mixed service including an aspect of Local Government or other public service.
  • Implementation and periodic review of the Pensions Acts – Cap 189 (Main Act) & Caps 190, 191, 192, 193, 194, 195, 196, 199, the Service Commissions Act Cap. 185, the Constitution, other Statutes and also the Civil Service Code of Regulations as it relates to Pensions.
  • Advise to the Government on the Public Service pensions policy.
  • Pensioner Care Services to retired officers and their families on Government pension policy and the administration of their pension

Challenges Faced by the Department

On a day-to-day basis, the Pensions Department also handles a large volume of correspondence as well as visitors, with an average of 700 letters and 200 visitors daily while about 2,000 claims are filed at the Department every month. The Department is also currently handling a payroll of over 180,000 active pensioners and more than 150,000 semi-active files held in the Registry.

Delays in processing of pensions can occur from either of three parties: –

The Ministry or Department where it does not lodge the officer claim papers on time this will be the case where the complainant writing to the Press does not have a Pension Number. In such cases, the Pensioner is advised to contact his parent Ministry.

The Pensions Department where it delays in processing the officer claim because the required information is missing from the claim documents and correspondences have to be exchanged to get the information.

 

The pensioner/beneficiary where they do not remit information requested either by the Ministry or the Pensions Department.

On items 1 and 2, the Pensions Department working with the Ministries has embarked on the following measures to address the delays particularly those occasioned in the Department: –

Restructuring the Claims delivery system between Ministries/Departments and the Pensions Department. Ministries and Departments are required to notify retiring officers of their impending retirement at least twelve (12) months before their retirement date and file the claims papers at the Pensions Department at least nine (9) months before retirement.

Computerisation: A new IT system is to be installed to reduce the number of manual interfaces required in the current computer system in the processing of pensions. This will address not only the software but also ensure complete computer networking and ultimately linkages to the Personnel processing system so that officers records are automatically filed at the Pensions Department upon notification of retirement. Use of Internet facilities is also being considered to facilitate faster communication with pensioners via e-mail.

Payment through the bank: Pensioners should take the initiative to streamline their banking issues to so that their cheques are not returned owing non-operational bank accounts

It is possible to pay a retiree pension benefits within the first week of retirement. Of course with cooperation of all the relevant parties and more so those retiring.

Serving officers should understand that it is part of their responsibility to assist the personnel units of the Ministries/Departments to sort out their service records while still in office. Start interesting yourself in your impending retirement early.

It is important that an officer gives family particulars, spouse (or spouses) and children. These should be supported by documents e.g. marriage certificate, birth certificates, divorce certificates etc which should be retained in the personal file. They all matter a great deal in the retirement benefits payment process.

Pension Increase for Government Retirees and Dependants W.E.F 1st July 2005

The Pensions Department paid pension increase for all Government Retirees who retired on or before 30th June 2005. The Department effected the increase as from July 2006.

Minimum Pension was increased by 300% from Kshs. 500 per month to KShs.2, 000 per month.

All pensioners earning KShs1, 000 or less every month had their pensions reviewed to KShs2, 000 per month.

All other pensions were increased by 3%. However, the initial minimum increase of the monthly pension was set at KShs.1, 000.

Pension increases for retired officers was paid in the July 2006 Payroll to their bank accounts together with arrears for the period 1st July 2005 to 30th June 2006.

 

Pension increases for Dependants, which are calculated manually, were paid in the August 2006 payroll and subsequent payrolls as they are completed. Arrears for the period 1st July 2005 to 30th June 2006 were also paid. Where a pensioner died leaving more than one spouse, the new pension amount was divided equally among the spouses.

Pensioners whose five year dependant pension ceased between 1stJuly 2005 and 31st May 2006 will also be paid their pension increase arrears once their calculations are finalised. Those whose dependant pension ceased in June and July 2006 were paid the increase arrears in the August Payroll.

In addition, a pension increase at the average inflation rate but capped at a maximum of 3% will be granted every two years with the next increase due on 1st July 2007.

Future pension increase is now guaranteed as the Government has set a positive precedent since the 3% biennial increment will be in law and Government will have to implement it.

Processing of Pension Claims for Officers of National Treasury

Processing of Pension Claims for Officers of National Treasury
In order to expedite on the processing of the pensions claims in respect of retiring officers from the National Treasury, the following documents should be forwarded the Head of HR department on 3rd floor room 320 or 315.

Two (2) clear copies of your National Identity card (both sides)
At least two (2) pay-slips each year for male officers
Dully completed Pension Commutation and address Form.
Official Secrets Acts Declaration Form Appendix `E`.
Clearance Certificate.as at the date of retirement
Copy of Pin card.
Copy of Bank Plate
Dully completed Declaration Assets and Liabilities form (PSC 2b).

In light of the above kindly note:-
Officers who have been notified of their retirement must ensure they submit the pensions claim support documents promptly to avoid delays in processing the claim.

NEEDTOKNOW
All officers must ensure that they are in possession of the following
documents:-
a) PSC 2 forms filled on employment,
b) At least two (2) pay-slips each year for male officers,
c) Letter/PCA on first appointment,
d) Letter of Probationary Appointment,
e) Letter of Confirmation in Appointment and
f) All promotions/upgrading/redesignation

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