TSC Introduces Retirement Scheme for Teachers Aged 50 Years
TSC Introduces Retirement Scheme for Teachers Aged 50 Years. The Teachers Service Commission (TSC) has introduced a pension scheme aimed at teachers aged fifty and above. In a communication addressed to regional and sub-regional directors, the commission ordered the identification of sites for teacher retirement education. These teachers will gather at designated locations within their respective counties this week and next to participate in a retirement awareness program.
The initiative comes as MPs prepare legislation for teachers and civil servants aged 55 and over to retire. About 85,000 teachers and civil servants are expected to retire in the next three financial years, putting significant pressure on taxpayers, with pension costs estimated at nearly Sh210 billion annually in this review period.
The provisions of § 80 paragraph 1 letter (a) and (b) of the Public Service Commission Act 2017 stipulates that a civil servant must retire from service on reaching the mandatory retirement age, which is currently 60 years and 65 years for persons with disabilities. However, a parliamentary committee is still considering lowering the mandatory retirement age from 60 to 55 in order to create more job opportunities for young people.
On a specific date, Thursday, August 3, the National Assembly working committee, while deliberating on the Public Service Commission (Amendment) Bill 2023, expressed its intention to introduce an amendment to cap the retirement age at 55 years. Various Members of Parliament have expressed their support for this change, emphasizing the need to accommodate the growth of the younger generations in the workforce.
If approved, these proposed changes would lead to the early retirement of a significant number of civil servants, which could have financial implications for a government already struggling with a significant pension burden. In 2009, the mandatory retirement age was raised from 55 to 60 in response to rising pension spending. The National Treasury paid out Sh69.22 billion in pensions and gratuities as of December 2021, and a 2016 audit revealed that 35% of national government employees were in the 51 to 60 age group.
In addition, the Public Service Commission Act 2023 introduces provisions to enable appointments to public office. These appointments are subject to individuals meeting all the necessary qualifications for the respective roles and appointments made without meeting these criteria will be canceled by the Public Service Commission.