Pension calculations for Kenyan Teachers. How much pension do Kenyan Teachers get?
TSC retired teachers pensions
In Kenya, teaching is regarded as a secure profession, with teachers receiving benefits such as health insurance and a pension.
Teachers receive a substantial stipend at the end of their careers and are guaranteed a monthly stipend as a pension in exchange for their service. Everything you need to know about the new TSC pension scheme is right here.
So, how much do Kenyan teachers get in terms of pension? Previously, teachers were not required to contribute to their pensions, and their benefits were paid directly from taxes.
Traditional pensions were based on the teacher’s years of experience as well as a measure of the final average salary, which is usually the average of the teacher’s salary in the three to five years preceding retirement.
There was no set pension amount for retired teachers. Typically, the amount of a teacher’s pension was determined by the number of years of service.
The pension was then calculated by multiplying the number of years of service by the average salary of the teacher.
When the result was multiplied by 80, it yielded a lump sum equal to three times the pension. In the 2021 unexpected turn of events, teachers’ take-home pay was reduced by 7.5 percent as they began contributing to their pension savings plan.
A portion of their salaries is deducted for remittance to the Public Service Superannuation Scheme (PSSS).
All new teachers employees below the age of forty-five years are subjected to PSSS membership. Those who exceed forty-five years will only be able to join the scheme if they opt to but through filling in the PSSS forms.
How TSC Pension Works
How does the TSC pension work? To figure out my teachers’ pension, specifically the service pension plus commuted pension;
Take one-fourth of the final pensionable emoluments for each completed month of pensionable service, up to a maximum of the highest pensionable salary drawn during service, i.e.
– (Completed month x annual salary) / 480
This means that if you have 10 years of pensionable service and a final salary of Ksh. 420,000 per annum, you would be eligible for; 10 years x 12 months x Ksh 420,000 per annum/480 = Ksh. 105,000 per annum.
Retirement Benefits
Teachers are also entitled to other benefits upon retirement under the provisions of the Pensions Act.
The benefits are typically provided at no cost, and they are not required to contribute a portion of their salary in order to receive these rights.
Also Read:
Teachers receive one or more of the following benefits upon leaving the service.
– Service pension plus commuted pension
– Marriage gratuity
– Injury gratuity
– Death gratuity
– Dependants pension
– Compassionate gratuity
– Annual allowance.
Pension calculations for Kenyan Teachers
