County Assemblies Forum Calls for Urgent Amendments to Pension Bill to Safeguard MCAs’ Retirement Security
In a pressing appeal to lawmakers, the County Assemblies Forum has urged the National Assembly's Committee on Social Protection to revise critical elements of the County Assemblies Pension Scheme Bill, 2024. The forum contends that the proposed legislation falls short in providing robust long-term financial safeguards for Members of County Assemblies and their staff, potentially leaving many vulnerable after their terms end.
The bill aims to establish a defined contribution pension plan tailored specifically for county assembly members and employees. However, stakeholders have raised alarms about its effectiveness when measured against the current gratuity arrangements, which they view as offering more dependable support for retirees. During a recent session chaired by Kipkelion West MP Hillary Kosgei, representatives from the forum, under the leadership of Seth Kamanza, presented a detailed critique. They emphasized that the draft, as it stands, risks undermining the financial stability that MCAs deserve after years of public service.
Central to the forum's concerns is the comparison with existing retirement frameworks, which provide greater certainty and reliability. Forum members argued that shifting to the new plan without enhancements could expose MCAs to unnecessary hardships in their post-service years. Drawing from past experiences, they pointed to a 2019 pension law introduced for county government workers, portions of which were later struck down as unconstitutional in a landmark court ruling involving Okoiti and several others against the County Governments Retirement Scheme and numerous counties. This precedent underscores the need to preempt similar legal challenges by fortifying the bill's foundations.
To bridge these identified shortcomings, the forum proposed a series of targeted amendments. First, they called for explicit measures to rectify the vulnerabilities highlighted in the Okoiti judgment, ensuring the scheme's durability against future court tests. On contributions, they advocated raising the employee's share from the current 7.5 percent to 12 percent, while boosting the employer's portion from 15 percent to 31 percent. This adjustment, they believe, would build a stronger funding base for sustainable payouts.
Additional recommendations include exempting MCAs from mandatory National Social Security Fund Tier II payments during their enrollment in the pension scheme, thereby avoiding overlapping deductions that could strain personal finances. The forum also pushed for the incorporation of comprehensive medical coverage extending into retirement, a benefit they see as essential for aging former assembly members facing health challenges. Furthermore, they suggested lowering the retirement eligibility age from 55 to 45 years, allowing earlier access to benefits for those who exit office sooner.
These changes, the forum stressed, must be prioritized and expedited, particularly to assist MCAs whose terms conclude in the coming months. Without swift action, many could transition into retirement without the protections they have earned. The group underscored the principle of fairness, insisting that MCAs warrant treatment on par with other public officials. This includes equitable access to full post-service medical insurance, mirroring the provisions extended to Members of Parliament and former national government employees.
In response, MP Kosgei validated the forum's apprehensions, describing them as well-founded and deserving of attention. He observed that county assemblies essentially parallel the National Assembly in function, which logically extends to aligning retirement perks as closely as possible with those enjoyed by national parliamentarians. His comments signal potential openness to incorporating the proposed tweaks during the committee's deliberations.
The push for these reforms arrives at a pivotal moment for devolved governance, as Kenya's county structures continue to mature. With MCAs playing a vital role in local legislation and oversight, securing their retirement futures not only honors their contributions but also bolsters the overall appeal of public service at the grassroots level. As the bill advances through Parliament, the forum's input could prove instrumental in crafting a more inclusive and resilient framework, one that truly shields assembly members from the uncertainties of later life.