SRC chair opposes plan to lower retirement age to 55

The Chairperson of the Salaries and Remunerations Committee (SRC), Lyn Mengich, has opposed the plan by parliament to reduce the retirement age for civil servants.

Her stance comes amidst proposals to lower the retirement age to 55, aimed at creating vacancies and integrating Kenya's youth into the civil service.

In an exclusive interview with Spice FM on Tuesday, Mengich emphasized the importance of retaining the current retirement age, citing concerns over increased pensionable liabilities and the premature disposal of experienced employees.

"If you say people retire at 55, it means they are pensionable at 55, yet they are people who are still productive and can contribute effectively to the country," stated Mengich.

Mengich underscored the need to evaluate global trends in retirement policies to inform decisions that best suit Kenya's context.

She argued against prematurely retiring individuals who possess valuable experience and capabilities that can benefit the workforce and the nation as a whole.

Pension systems

However, Mengich expressed reservations about lowering the retirement age, highlighting the potential adverse effects on both pension systems and workforce productivity.

"If you say people retire at 55, these are people who are still productive; they can still contribute effectively to the country. Why do you want to retire them early yet these are people who can contribute?" posed Mengich.

Trade unions have also voiced opposition to the proposed reduction in the retirement age, citing breaches of contractual agreements with the government.

They argue that prematurely retiring workers would not only impact individuals' livelihoods but also disrupt the stability of labour relations in the country.

In 2009, the mandatory retirement age was increased from 55 to 60 years due to the government's struggle to manage a growing pension bill.

Recently, the National Treasury paid out a significant amount of Sh69.22 billion in pension and gratuity for the six months ending December 2021.

An audit in 2016 revealed that 35 per cent of national government employees were aged between 51 and 60 years.

According to the Public Service Commission's 2021–2022 annual report, a total of 3,958 officers retired from 47 ministries, departments, and agencies, highlighting the need for a sustainable retirement age policy.