This document discusses steps for establishing a national pension program and rightsizing the public sector workforce in 3 stages: pre-requisites for pension, rightsizing, and next steps. It outlines collecting employee data, developing an HR system, determining mandatory and voluntary retirements, calculating severance packages, and analyzing costs and savings of rightsizing. It also addresses pension policy issues like benefit structures and financing pensions. The World Bank offers support for an interim pension plan, long-term policy design, and institutional arrangements.

1. Pension & Rightsizing

2. Pre-Requisites for Pension
• Mandatory requirement that all public service
employees secure a national ID card
• Completion of collection of public service
employee data  protective forces
• Functioning HRMIS to continually update
employee data

3. Rightsizing
• Determine target group for mandatory and voluntary
retirement
– Employees above pensionable age
– Died in service
– Unable to fulfill their duties
– Post abolished or does not serve mandate
• Develop formula to calculate cash handshake (one-
time payment, monthly payment, land?)
• Financial analysis (cost – savings)
• Financing of interim pension
• Scope of rightsizing  link with re-organisation?

4. Pension Policy Issues
• Defined benefit vs defined contribution
scheme
• Pension scheme rules for different groups of
employees
• Pension Structure: Independent Pension Fund
& Pension Board
• Financing of Pension payments

5. Next steps
• Completion of Employee Data collection (or
pay roll audit)
• Financial Analysis
• Development of Interim Pension Policy &
Pension Policy
• Approval by SC and Cabinet

6. World Bank Support
• Support for design of interim pension
arrangements
• Support for design to pension policy and law
based on strategy
• Advice on institutional arrangements for
pension fund and institutional arrangements