Mandate of the Department
The Department of Compensation was created in 1946 when the Pension Act was enacted. The department was originally known as the Pensions Department until 1998 when there was a restructuring of the Ministry and its name was changed to the Compensation Department.
The Department is a specialised section in the Ministry of Public Service that deals with the payments of terminal benefits.
It is mandated to ensure a fair, equitable, transparent and prompt system of computation and payment of pension and other terminal benefits to the senior citizens/pensioners.
It manages the Pensions Scheme for the Traditional Public Service Teaching Service and Defence and the compensation to the former employees of the defunct East African Community (EAC).
Aim of the Department
The department aims at promptly and accurately paying pension and other terminal benefits.
The Department pays the following terminal benefits
- Monthly pension,
- Commuted Pension Gratuities
- Contract Gratuities
- Death Gratuities
- Special compensation
- Repatriation expenses
- Paying in lieu of leave
The Major achievements of the Department
Computerisation of records which has quickened:-
- The process of records maintenance and retrieval Computation and assessment and also eases Information dissemination.
- Changing from Cash payments to paying through the Banks. This is very convenient for the clients.
- Compensation to the defunct E.A.C has been completed.
- Published pension management information guide to enhance communication with clients.
- The Pension Re-validation that started in 1999.
Sections of the Compensation Department
The department is divided into four sections namely Assessment, Accounts, Records, and Database information Management.
The Assessment Section
In this section all documents are initially processed and captured onto the Database. The Unit scrutinizes all submitted documents in the files of the beneficiaries and promptly works on them.These files are then forwarded to the Auditors for auditing and approval.
The Accounts Section
This section is concerned with the payments of the beneficiaries after the section above finishes work. Accounts section studies the files, computes what is due to each individual file and pays the computed dues.