Civil Servants Pension Scheme
The Civil Servants Pension Scheme is a government-funded retirement plan available to Kenyan government employees. This defined benefit scheme ensures that employees receive a monthly pension based on their years of service and salary. The government guarantees payments, making it one of the most secure options for government workers.
Public Service Superannuation Scheme (PSSS)
The PSSS is a contributory retirement scheme designed specifically for public sector employees. Launched in 2021, it requires both employees and the government to make monthly contributions. This plan allows government employees to grow their retirement savings through investments, offering a mix of security and growth potential.
National Social Security Fund (NSSF)
The NSSF is a statutory retirement savings program for all Kenyan workers, including government employees. It allows employees to contribute a portion of their salary to a retirement savings fund, which is then paid out in a lump sum or as a monthly pension. Although not exclusively for government employees, it complements other retirement schemes.
County Government Pension Scheme
For county government employees, this scheme provides retirement benefits similar to those of the Civil Servants Pension Scheme. Employees contribute a portion of their salary, and the county government matches it. This ensures that county employees have a steady income after retirement while securing their financial future.
Individual Pension Plans (IPPs)
In addition to government-provided pension plans, government employees can supplement their retirement savings with Individual Pension Plans. Offered by financial institutions like insurance companies, IPPs allow employees to set aside additional funds for retirement and benefit from tax advantages. These plans offer flexibility in terms of contribution amounts and investment choices.
Mbao Pension Plan
The Mbao Pension Plan is a flexible and affordable option for both formal and informal sector workers in Kenya, including government employees. This plan allows for small, regular contributions and is particularly suitable for employees who wish to supplement their government pension with additional savings. It’s voluntary and easy to manage, offering good returns for retirement savings.
Post-Retirement Medical Funds
Many government employees are encouraged to save for healthcare during retirement through Post-Retirement Medical Funds. These plans allow employees to set aside money during their working years to cover medical expenses after retirement, ensuring that healthcare costs do not become a burden later in life.
These retirement plans offer government employees in Kenya the security and flexibility they need to ensure a stable financial future after their careers in the public service.