Civil servants and TSC teachers, unlike workers in the private sector, do not contribute to their pension and their benefits are paid straight from taxes.
The Teachers Service Commission (TSC) two months ago completed a review of the pensions of the 23,811 teachers who retired in 1997.
TSC chief executive Nancy Macharia told the National Assembly’s Education Committee that they had submitted 16,523 revised claims to the Director of Pensions at the Treasury.
“More than 7,358 claims are ready for submission,” she told the committee chaired by Mr Julius Melly (Tinderet MP).
“TSC only processes the payments while the Director of Pensions pays and, therefore, any delay cannot be blamed on us,” she told the committee at County Hall, Nairobi, in a meeting that was also attended by Education Cabinet Secretary Amina Mohamed.
Mr Yatani had earlier in the year pledged to gazette May 1 as the commencement date for the contributory Public Service Superannuation Scheme by enforcing the Public Service Superannuation Scheme (PSSS) Act 2012.
This meant that teachers are now likely to get their pension arrears estimated to be more than Sh17 billion.
Under the retirement scheme, teachers and civil servants will contribute 7.5 percent of their salary, with the government matching every worker’s monthly contribution at the rate of 15 percent of the pensionable salary.
“A member may also make voluntary addition to their contributions towards their retirement benefits in the PSSS,” Mr Yatani said in Budget Policy Statement.
“The government is also mandated to take out and maintain a life insurance policy that has disability benefits in favour of every member of the scheme. The policies must be worth a minimum of five times the member’s annual pensionable emoluments.”