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New Govt Payroll System Targets Missing Pension Contributions
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Kenyans.co.ke
The National Treasury has outlined fresh reforms aimed at ending delays in workers' pension contributions by introducing an automated system that deducts and remits retirement savings during payroll processing.
According to Mbadi, the reforms will integrate the Government's Human Resource Information System (HRIS-Ke) with the Integrated Financial Management Information System (IFMIS) to automate the deduction and remittance of pension contributions.
"The reforms will facilitate the automatic deduction and remittance of pension contributions during payroll processing, enhancing transparency, reinforcing compliance and significantly reducing the risk of delayed or non-remittance of employees' retirement savings," Mbadi told the committee.
PCSHe said the government remains committed to protecting workers' retirement savings through stronger policies, better governance and improved oversight of retirement benefits schemes.
The reforms follow years of complaints over delayed pension payments, late remittance of contributions and missing retirement records, with government audits revealing billions of shillings in unremitted pension savings across the public sector.