PREMIUM Treasury rejects call for merger of two public servants' pension schemes Petitioners raised concerns over unequal benefits and delayed payments. Business Just now Listen

The Treasury Principal Secretary Chris Kiptoo said the Non-Contributory Defined Benefit (DB) pension scheme and the Public Service Superannuation Scheme (PSSS) are fundamentally different in legal character, benefit design, financing mechanism, actuarial treatment, and fiscal structure.

Photo credit: Dennis Onsongo | Nation Media Group “Notes that the coexistence of the legacy Defined Benefit pension arrangement and the Public Service Superannuation Scheme represents a statutory transition from an unfunded pay-as-you-go (PAYG) arrangement to a funded contributory retirement benefits framework and does not, in itself, constitute discriminatory treatment.

They claimed that the current pension framework governing the public service, said the government, through the PSSS Act, 2012, converted the previous Non-Contributory Defined Benefit (DB) pension scheme to a Defined Contributory (DC) scheme effective January 1, 2021.