Early retirement for teachers in Kenya offers the opportunity to step away from the profession before reaching the mandatory retirement age of 60 and 65 years for those with disabilities. The process is guided by specific regulations set by the Teachers Service Commission (TSC), ensuring that teachers who choose this option can do so under well-defined terms.
While it provides flexibility for teachers, it’s important to understand the implications it has on their pension as well as the benefits when retiring early.
A teacher may decide to retire early given they observe the following conditions set by TSC:
1. Eligibility Age
A teacher is eligible to apply for early retirement under specific circumstances before reaching the mandatory retirement age of 60, typically between 50 and 60 years of age. They must have completed 10 years of continuous service on permanent and pensionable conditions.
2. Health Conditions
Teachers who are unable to perform their duties due to health reasons may be granted early retirement on medical grounds, supported by medical evidence.
3. Voluntary Early Retirement
Teachers who wish to retire early for personal reasons, such as pursuing other interests or academic goals, can apply for voluntary early retirement. However, the decision is subject to the TSC’s approval.
4. Pension and Benefits
Teachers retiring early will be entitled to a pension, but the amount may be less than what they would receive at the mandatory retirement age, depending on their years of service.
5. Special Circumstances
In certain cases, the TSC may allow early retirement for teachers in specific administrative positions, such as heads of institutions or those with specialized roles, based on operational requirements or the nature of their workload.
In other instances, early retirement may be allowed if the teacher has served under challenging circumstances but only after TSC assesses the situation for approval.
If the any or multiple of the above conditions are met, the teacher must submit a written application through the institution’s head and provide three months’ notice of the anticipated retirement date.
After receiving the application, the commission issues a retirement notification.
TSC then handles the retirement claim after receiving the necessary documentation. The Director of Pensions at Treasury receives this claim and makes the necessary payments.
According to the TSC Supperannuation and Retirements Benefits Scheme, pension is calculated based on years of service and salary.
The formula is 1/40 multiplied by years of the teacher has contributed to the pension plan multiplied again by the Teacher’s final annual pensionable salary.
For early retirees, the benefits payable are the same as those for normal retirement but are subject to a 3 per cent reduction for each year of service before reaching the age of 55.
On the other hand, those who retire due to health reasons, their pension is calculated by years of pensionable service up to their retirement date.
Once a member reaches the official retirement age, they will can take 1/3 of the accrued benefits as a lumpsum and 2/3 is channeled towards purchase of a monthly pension subject to applicable taxes.
They can however wait until they are 65 years of age so that they can access them without incurring taxes.
