Teachers’ Common TSC Pension Lump Sum Calculation Formula.
Teachers Service Teachers Commission (TSC) normally pays teachers a lum sum pension earnings which is is calculated through a specific formula .
The teachers’ details are normally forwarded to the financial security agency during their retirement years.
According to the commission,teacher lump sum pay is is a one-time cumulative payment which the retirees receive upon retirement .
In addition to this , there is TSC monthly pension payments which is also also paid to teachers inorder to provide them with a steady income throughout their retirement period.
Teachers’ Lump sum payment , is also meant to help teacher retirees with a substantial sum of money immediately once they are out of service.
TSC guidelines on how teachers’ pension lump sum is calculated .
These details provide a clear understanding of the process.
Before the calculation of the teacher lump sum amount, it is important to grasp the basics of the TSC pension scheme.
Note that TSC pension scheme is a designed to help in provision of financial support to teachers once they retire.
The above calculations are made which also includes the lump sum as well as the monthly pension payments of the teacher.
TSC Current Pension Calculation Method
The formula that TSC uses inorder to calculate teacher lump sum amount for the teachers is as follows;
Teacher’s Total Lump Sum = (the Total Pensionable Emoluments / the 720 months ) x Pensionable Service
Understanding Pensionable Emoluments.
It refers to the total salary and allowances, then divided by 720 months.
TSC normally uses the division by 720 inorder to calculate the average monthly pensionable teacher emoluments.
Understanding the Pensionable Service
This is the number of years plus the months that the teacher has served under TSC as a teacher employee.
Normally TSC uses a given duration to express in years as well as any remaining months that are then converted into years.
Once the calculation a retiree benefits is complete, the teacher is entitled to receive this lump sum amount forming part of their retirement benefits.
TSC pension Calculation example
For purposes of illustration, the calculation works are as follows ;
For instance incase a teacher’s pensionable emoluments amount to Ksh 10, 000,000, and then this teacher has served for a period of 25 years and some 6 months , then calculation is as follows
The TSC Lump Sum is =to (10,000,000 / 720) x the 25.5 months = Ksh 354166.7
This means that this teacher would be eligible to receive a lump sum of roughly sh 354166.7 upon retirement.
Teachers’ Common TSC Pension Lump Sum Calculation Formula.
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