MCAs can now hope for a comfortable life in retirement as the government seeks to establish a dedicated pension scheme for them.
This came after the government fronted a Bill creating the County Assemblies Pension Scheme for the ward reps and staff of the members of the county assemblies.
The County Assemblies Pension Scheme Bill, 2024, has been introduced in the Senate for the first reading.
The proposed law is sponsored by Senate Majority leader Aaron Cheruiyot.
“The principal object of this Bill is to establish the County Assemblies Pensions Scheme for all members of county assemblies,” the Bill states.
According to the Bill, a retired or resigned MCA or county staff shall receive a lump sum payment as provident, periodic payments as pensions and income draw-downs.
For a deceased member, the family-spouse or children-shall enjoy the benefits.
“The proposed scheme will transition all members of county assemblies into one universal scheme for all the 47 county governments, besides being open to other public officers and any other person approved by the board,” the Bill reads.
Currently, retired MCAs earn gratuity calculated at the rate of 31 per cent of their basic salary for the number of terms served.
The Bill states that the payment of retirement benefits shall start from the end of the month immediately following the month of the retirement of the member.
The Bill provides that a member of a county assembly or staff shall contribute not less than 7.5 per cent of that member’s pensionable emoluments to the scheme.
The MCAs employer-the County Assembly Service Board-shall contribute to the scheme not less than 15 per cent of the pensionable emoluments of a member of the scheme plus the amounts necessary to cover the premiums for insured benefit.
“In addition to the contributions, the sponsor [employer] shall take out and maintain a life insurance policy that has disability benefits in favour of every member of the scheme, for a minimum of three times of the member's annual pensionable emoluments,” the Bill reads.
On Thursday, the MCAs, through the County Assemblies Forum (CAF), signalled their rejection of the Bill.
“What we want is a pension scheme that takes care of state officers from the point of devolution. We have elaborate scheme state officers at the national level,” CAF secretary general Mwaura Chege said.
Chege, the Ngara MCA in Nairobi, said CAF’s legal team is scrutinising the Bill and shall submit its views to the Senate during public participation.
The Bill provides that all members of the third county assemblies (current MCAs) and staff shall, on the date of commencement of the Act, be deemed to have joined the scheme.
“The members and staff of county assemblies who are members of the Local Authorities Provident Fund and the Laptrust (Umbrella) Retirement Fund shall be transitioned into the scheme within six months upon the commencement of this Act,” the Bill states.
It says sponsors (County Public Service Boards) and members of the scheme may be exempt from making Tier 11 contributions to the National Social Security Fund (NSSF).
In the Bill, all the MCAs and staff of county assemblies shall be members of the scheme.
The management of the scheme shall vest in a Board of Trustees of the scheme.
The board shall consist the chairperson, elected by the trustees from among the members, a county executive committee member for finance nominated by the County Council of Governors and two people nominated by County Assembly Service Boards.
Others are five persons nominated by the forum representing all the county assemblies.
“The board shall appoint a fund manager of the scheme who shall implement the investment policy of the scheme as approved by the board,” the Bill reads.