The government has unveilled a plan to slash salaries of 530,000 civil servants including teachers and police officers.
Civil servants would in January see their salaries reduced by 7.5% to cater for a new pension scheme soon to be created.
The publication further indicated that Treasury CS Ukur Yattani is set to launch the new scheme, dubbed the Public Service Superannuation Scheme (PSSS), on Wednesday, August 5.
The new scheme will be the biggest pension scheme in the country.
The CS confirmed that the new scheme would be aimed at reducing pension pressure on the exchequer.
“Membership to the scheme will be mandatory to all new entrants upon commencement of the Act and all employees aged below 45 as at the date.
“Employees aged 45 years and above will have an option to join the scheme by completing the Public Service Superannuation Scheme option form,” read a statement from the scheme in part.
The new scheme is set to rake in Ksh2.4 billion monthly revenue compounded to Ksh28 billion annually.
The Public Service Superannuation Scheme (PSSS) Act was assented to on May 9, 2012, with objectives including payment of retirement benefits to members of the Scheme and ensuring that members receive their payment when they are supposed to.
The Public Service Superannuation Fund will have a board of directors with the chairman appointed by the cabinet secretary.
Other members will include representatives from the Teachers Service Commission, Public Service Commission and the Inspector General of the National Police Service or his representative among others.
