A team from the National Treasury and Economic Planning Ministry led by Principal Administrative Secretary (PAS)Samson on Friday held a forum in Eldoret, Uasin Gishu County to sensitize government employees on the new Public Service Superannuation Scheme (PSSS) and Civil Servants Car Loan Scheme.
Speaking during the forum, Principal Pensions Officer, Carol Nyukuri explained that in 2010 the National Treasury introduced a reform that required all public institutions to convert defined benefit schemes (DB) to defined contribution schemes (DC) leading to a decision to kick start the Public Service Superannuation Scheme (PSSS) on 1st January 2021.
She noted that the government established a Contributory scheme for teachers, civil servants and the disciplined services personnel through enactment of the PSSS.
She added that the scheme operates as a trust managed by a board of trustees who have engaged the service of other professionals including (CFP) financial services, Gen Africa and NCBA bank.
‘Every month P
SSS members contribute 7.5% of their basic salary while the government contributes 15% of the basic salary of every member of the scheme,’ she disclosed.
Nyukuri revealed that members of the PSSS and their beneficiaries are entitled to their benefits upon exit from public service irrespective of the nature of exit and the benefits are payable in case of retirement, resignation, dismissal, retrenchment, sickness, emigration or death.
‘In case of the death of one of the members of the scheme, his or her benefits are paid to nominated beneficiaries. It is therefore critical that all members of the scheme nominate their beneficiaries in a prescribed form and ensure that the document is submitted to the scheme,’ added Nyukuri.
She emphasized that a member of the scheme will be given a third of his or her money as a lump sum while the balance is payable through a series of a regular payments through an annuity or income drawdown arrangement.
She further noted that the scheme had come up with a strategic plan ru
nning from 2024 to 2028 with the objective to achieve financial stability and profitability, improve customer experience and transform stakeholders’ engagement.
In his remarks Wangusi pointed out that the government rolled out the pension scheme to take good care of its employees after exit from service and also clarified that the motor vehicle loan scheme was established to ensure efficiency at work by enabling government employees to reach work on time.
‘We have around Sh 4 billion in the National Treasury and we need people to enroll and take these loans, to own a car right now is very beneficial because it will help in mobility,’ he said.
He said that there’s an ongoing process to amend the Traffic Act to allow government employees apply for a loan in the scheme for a personal car but not for commercial use.
‘The vehicle is there, you only need to make an application online and in 2 weeks you will be able to own a car,’ said Wangusi.
On his part, Uasin Gishu County Commissioner, Dr. Eddyson Nyale aff
irmed that the PSSS was established by the government to benefit civil servants thereby contributing to a successful employment environment.
‘This program is not for any Agency, department or stakeholder; it is personalized to every civil servant. You have been informed and it is now your responsibility to learn and teach others who are not present,’ he explained to the government officers who attended the forum.
He added that through working with the different stakeholders in the government the program is slowly growing into a success following the consistent increase in numbers of registered members.
He assured the officers that the PSSS is out to benefit all civil servants and encouraged eligible civil servants to apply for car loans and pay as they work through affordable interest rates.
Dr. Nyale divulged that the Central Provident Fund (CPF) works as fund administrators keeping records of people’s data and personal information safe until when it is required.
‘The government through the car loan sch
eme has come up with a fund to improve state officers and civil servants lives with a car loan Facility helping them to purchase a car at a reducing interest loan rate of 5%,’ added the CC.
To qualify for the car loan Scheme fund, one has to meet the written down eligibility requirements such as being a civil servant, submit duly filled application form downloaded online, pay non-refundable application fee of sh1,000, submit copy of national ID or passport and certified copies of pay slips for the last three months.
Once the proper documentation has been done and submitted to the national treasury and a civil servant meets the eligibility criteria, he or she will receive the loan within two weeks.
Additionally, the car loan scheme only issues the money to the car dealer and not directly into the account of a member. One is expected to repay the loan within 5 years of application and maintain the vehicle in a satisfactory state of repair.
In this regard, the loan interest is 5% of reducing balance as the l
oan is paid. For a car to be purchased the supplier of the motorcar must be a recognized car dealer and a signed sale agreement should be issued. The beneficiary should also ensure that the loan repayment is done not later than the 10th day of the following month to avoid penalty charges.
Wangusi further noted that the car loan scheme fund has an advisory board that plays the oversight role in the operations of the fund with the help of the CEO who is in charge of administration.
Source: Kenya News Agency