UASU Warns Against PSC's Retirement Rules Affecting UoN Staff

• The University of Nairobi's pension scheme is on the brink of collapse due to the revised retirement policy introduced by the Public Service Commissions (PSC).
• The policy lowers the retirement age for professors from 74 to 70 years and for senior lecturers and other academic staff from 74 years to 65 years and below.
• UASU has criticized the PSC for introducing the policy without consulting universities, academic staff unions, or university councils.

The University of Nairobi cannot realistically survive such a drastic reduction in its teaching staff within a period of only five years, the union cautioned.

The University of Nairobi's pension scheme is on the brink of collapse due to the revised retirement policy introduced by the Public Service Commissions (PSC). The policy, which lowers the retirement age for professors from 74 to 70 years and for senior lecturers and other academic staff from 74 years to 65 years and below, has been criticized by the Universities Academic Staff Union (UASU) for its potential to deprive the scheme of critical contributions needed for its sustainability. According to UASU, the university's pension scheme is owed about Sh11 billion in outstanding pension contributions, which would be severely impacted if large numbers of lecturers are forced to retire simultaneously. This could lead to a collapse of the pension scheme, leaving thousands of academic staff without their retirement benefits.

The revised retirement policy has also been criticized for its potential impact on the university's teaching and research capabilities. With the reduction in retirement age, many senior academics who have decades of experience and internationally recognized research credentials will be forced to retire prematurely. This could lead to a loss of expertise and specialized training programs that depend on these professors. According to UASU, the university has already lost nearly 40% of its academic workforce through retirement, resignations, deaths, and other forms of attrition, leaving it with only about 60% of its previous staffing levels. If the revised retirement age is enforced, the remaining workforce would shrink by another 40%, translating into a cumulative loss of between 60 and 70 percent of the academic staff employed in 2020.

The introduction of the revised retirement policy has also raised concerns over institutional autonomy. The PSC introduced the policy without consulting universities, academic staff unions, or university councils, which has been criticized by UASU as undermining institutional autonomy. Furthermore, while there were initial conflicting decisions, the Employment and Labour Relations Court has since upheld the PSC's retirement-age provisions, providing legal clarity for universities and lecturers. This has led to calls for the PSC to withdraw the circular and engage stakeholders in fresh consultations.

Lawyers advising universities on compliance with the revised retirement policy should watch for potential pension scheme collapses and advise clients to engage in fresh consultations with the Public Service Commissions.

Source: Original reporting via The Star