Public Workers May Soon Access Pension Savings Before Retirement
Public servants who resign or leave before retirement age will soon be able to access their pension savings if this new bill goes through Parliament.
The Public Service Superannuation Scheme (Amendment) Bill, 2025, sponsored by National Assembly Majority Leader Kimani Ichung’wah, seeks to remove barriers that have for years locked out employees from accessing their contributions.
Currently, you can only access your pension savings when you are 50 or upon retirement. But the proposed changes will allow you to access both your personal and employer contributions immediately you leave public service, so you have full control of your money.
“All retirement savings shall vest immediately in a member,” reads part of the bill, a big shift in pension fund ownership and accessibility.
If passed, the bill will also give you the option to withdraw the full amount as a lump sum or transfer your savings to another registered retirement scheme.
Additionally, the bill will tighten compliance by requiring government employers – including TSC, NPS and PSC – to remit deductions within 10 working days after each month. Any delays will attract penalties equivalent to the previous year’s fund return rate.
Management of the scheme will also be overhauled with the board of trustees reconstituted to include representatives from unions like KNUT and UCU, making management more accountable to members.
Beyond accessibility and accountability, the bill also introduces flexible payout options to give you more financial freedom.
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