HOPS urges PSSF board for prudent, integrity-driven fund management to safeguard retirees' savings.
Mr. Felix K. Koskei, Chief of Staff and Head of the Public Service, presided over the second Annual General Meeting and launch of the strategic plan of the Public Service Superannuation Fund (PSSF) on 7th June 2024 at the Kenya School of Government. His impassioned speech to the managers of the fund that comprises civil servants, security personnel and teachers urged integrity and prudent investment to ensure that the retired workers benefit from their savings.
We have observed people timidly or unscrupulously invest public money in unstable banks, where it is inevitably lost", he cautioned the PSSF Board.
He focused on the recent transition from a "Pay-as-you-go" pension model to a contributory pension scheme, which he described as a new era for Kenya's senior citizens which he said is part of the broader Kenya Vision 2030 and aims to provide a dignified retirement for all public servants.
Mr. Koskei highlighted that this shift, which referred to as the “three-legged stool” after over a decade of anticipation, has balanced the three essential pillars of retirement: pensions, social security, and private savings. He stressed that these pillars are critical for ensuring that those who have served the nation can retire with dignity.
“Be united and sort out matters internally via laid down procedures and not in the public gallery. Do not be divided along membership lines, be one body. Be a model organisation that other institutions come and learn from”, he urged the board. He reiterated the need to exercise quality customer care, be service oriented, to invest in relevant technology and training for the PSSF to have the competency required to forge ahead into the future. “Stay divorced from the political arena and do not carry self-interest at the expense of your membership”, he emphasised.
He emphasised the government's commitment to social security and pensions, underlining that these are constitutional rights guaranteed by Article 43. This includes ensuring access to healthcare, freedom from hunger, education, clean water, and sanitation. He likened the nation's democratic construct to that of a family, where every member's well-being is paramount.
Mr. Koskei noted the significant financial implications of the previous pension model, with expenditures projected to exceed KShs. 200 billion in the fiscal year 2024/25. To address this, the new contributory scheme was introduced in 2021, marking a significant policy shift. This scheme now has over 429,000 contributing members, with both employees and the government contributing to a dedicated fund. This initiative has already grown the fund's value to KShs. 126 billion.
His presentation detailed governance improvements, including the appointment of a Board of Trustees and the involvement of unions such as KNUT, KUPPET, and UKCS in the scheme's administration. Mr. Koskei highlighted the scheme's alignment with the Bottom-Up Economic Transformation Agenda (BETA), which aims to enhance savings, investment, and economic security.
Mr. Koskei urged continued support for the scheme, emphasising its role in ensuring shared prosperity and intergenerational equity for all Kenyans. He expressed confidence in the scheme's strategic plan for 2023-2027 and its potential to deliver a prosperous future for the country.
