Proposed Contributory Pension Scheme
The government proposed 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.