Public Service Superannuation Scheme (PSSS / PSSF) Pension Guide
The Public Service Superannuation Scheme (PSSS), commonly referred to as the PSSF pension scheme, is a landmark Defined Contribution (DC) pension framework introduced for Kenya's public service sector. It covers civil servants, teachers employed by the Teachers Service Commission (TSC), administration police, and other state officers, replacing the older non-contributory defined benefit pension model.
Key Contribution Rates under the PSSF Act:
- Employee Monthly contribution: 7.5% of the monthly basic salary, deducted directly at payroll level.
- Employer (Government) contribution: A matching employer contribution of 15% of the employee's monthly basic salary.
- Additional Voluntary Contributions (AVC): Public servants can choose to remit additional voluntary amounts to boost their retirement nest egg. Note that government matching does not apply to AVCs.
Accessing Your PSSF Benefits Upon Retirement:
- Lump Sum Withdrawal: Upon retiring or reaching the age of 50, members can access up to a maximum of one-third (1/3) of their accumulated pension fund as a tax-free lump sum.
- Annuity Purchase: The remaining two-thirds (2/3) of the accumulated fund is legally committed to purchasing a monthly annuity or placed under a regulated income drawdown plan to pay out a consistent monthly pension for life.
- Death & Life Insurance benefits: The scheme is packaged with a premium group life insurance cover providing disability benefits and death compensation to designated dependents up to five times the member's annual pensionable emoluments.