Boost for pensioners as Treasury puts in extra Sh5b budget request

NSSF building, Nairobi photo:courtesy

Treasury has given the State’s pensions scheme an additional Sh5 billion to pay retired workers in the supplementary budget submitted to the Parliamentary Budget Committee.

The money, which if approved will push spending on pensions and gratuities to Sh60.6 billion, will go into making payments for the current month.

COURT AWARD

Pensions Director Shem Nyakuti said the revision of spending was modest compared to last year when the pensions team got Sh11 billion in additional funding to meet the demands of retired Government workers.

“The funds are meant to clear backlogs of pensions and death for workers, including the Nakuru teachers, military officers, teachers, civil servants and the disciplined forces,” said Mr Nyakuti.

About 52,000 members who retired from between August 1997 and September 1998 have been demanding Sh42 billion.

Delays in disbursing an initial payment of S1.5 billion to the claimants landed Mr Nyakuti in trouble early this year, with a Nakuru court threatening to jail the pension’s boss for a month.

Mr Nyakuti said such reviews in budget estimates were meant to clear such surprises as the court award and when employees opt for early retirement between 50 and 60 year.

The cost of funding senior citizens leaving Government employment could rise steadily in the next few years, especially with estimates putting the percentage of civil servants set to leave office at 35 per cent.