PSSF registers over 34 percent membership growth in just three years
Sponsored by Public Service Superannuation Fund
Jonah Aiyabei, Public Service Superannuation Fund CEO.
In just three years since its launch, Kenya’s Public Service Superannuation Fund (PSSF) has demonstrated remarkable growth in membership.
The scheme currently serves 443,639 members, made up of 262,043 teachers, 116,010 disciplined service personnel, and 65,586 civil servants. This is an increase from 331,000 members at inception in 2021.
The shift from a non-contributory to a contributory pension scheme in 2021 marked a new era for public servants, offering them greater control over their retirement savings. Contributions are set at 7.5 percent of a member’s basic salary, with the Government matching this with a 15 percent contribution, further boosting the retirement benefits.
Chief Executive Officer, Dr Jonah Aiyabei, says the fund’s success is rooted in a diversified portfolio that prioritises member value.
“Our strategy ensures we maximise returns while minimising risk, ultimately benefiting our members. We are exploring additional investment opportunities, such as Real Estate Investment Trusts (REITs), to further diversify and tap into new growth sectors,” he says.
Since independence, the Government operated a non-contributory Defined Benefit Pension Scheme fully financed through the Consolidated Fund. The contributory scheme was established under the Pensions Act (Cap 189A).
All employees of stated categories of public service who had not attained the age of 45 years as of January 1, 2021 were automatically enrolled in the scheme.
The benefits payable to the members after exit from Government service consist of accumulated savings and investment income less expenses (and taxes) incurred in the administration of the funds.
A maximum of one-third of a member’s savings is payable as a lump sum, while the balance is payable through a series of regular payments (monthly, quarterly or annually), through an annuity or income drawdown arrangement.
Members can gain instant access to their statements through the Scheme’s web or via USSD code *378#.
