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Proposed Contributory Pension Scheme:

The government proposes a public servants superannuation scheme.

  • This is a defined pension benefit scheme where both the employer and the employee contribute certain proportions towards pension benefits.
  • It is mandatory for those joining service and those below 45 years.
  • Those above 45 years can opt to join.

Benefits of the proposed contributory Pension scheme

An employee can transfer pension benefit credits from a former employer to another with a similar Pension scheme.

  • The scheme allows employees to access part of their benefits even before the mandatory retirement age.
  • Teachers joining the scheme from non-contributory pension scheme will have their past benefits transferred to the new scheme.
  • Widows and Children’s Pension Scheme (WCPS) and NSSF contribution will cease immediately an employee joins the scheme.
  • Those who remain in the free Pension Act will be bound by the provision of the Pensions Act cap 189.