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Members of County Assembly (MCAs) will now enjoy a pension scheme once they resign or finish their term if a new Bill is passed.

County Assemblies Pensions Scheme Bill 2024, seeks to have the scheme offer lump sum payments as provident, periodic payments as pensions and income draw-downs.

Bill sponsored by Kericho Senator Aaron Cheruiyot proposes that the scheme will transition all Ward Reps 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 principal object of this Bill is to establish the County Assemblies Pensions Scheme for all Ward Reps,” the Bill.

If enacted, the scheme will provide for the payment of retirement benefits to members when they become due. It will also provide for the social security of members of the Scheme by ensuring that the members save to cater for their livelihood during their retirement.

In addition, it will establish a uniform set of rules, regulations and standards for the administration and payment of retirement benefits for members of the Scheme.

Cheruiyot, in his Bill, states that 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).

Bill provides that an MCA or staff shall contribute not less than 7.5 per cent of that member’s pensionable emoluments to the Scheme. Bill adds that the payment of retirement benefits shall commence from the end of the month immediately following the month of the member’s retirement.

Ward Reps’ employer – the County Assembly Service Board (CASB) – shall contribute to the Scheme not less than 15 percent of the pensionable emoluments of a member of the Scheme plus the amounts necessary to cover the premiums for insured benefit. “All members of the third county assemblies and staff shall, on the date of commencement of this Act, be deemed to have joined the Scheme,” reads part of the Bill.

“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 the member’s annual pensionable emoluments,”  Bill reads.

Basic salary

Currently, retired MCAs earn gratuity calculated at the rate of 31 per cent of their basic salary for the number of terms served.

The Pension Fund scheme shall consist of monies as may vest in or accrue to the Scheme in the performance of its functions under this Act or under any other written law, contributions from sponsors and members, grants, gifts, donations or other endowments given to the Scheme.

The fund will also consist of income from investments made by the Scheme that are approved by the Board, fees and charges authorised by the Board, monies earned by the Scheme from any other source; and monies from any other source provided or donated or lent to the Scheme.

Yesterday, the Ward Reps, through the County Assemblies Forum (CAF) signaled 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,” said CAF Secretary General Mwaura Chege.

The Ngara MCA said CAF’s legal team is currently scrutinising the Bill and shall submit its views to the Senate during public participation.

Bill provides that all MCAs and staff shall, on the date of commencement of this Act, be deemed to have joined the Scheme.

“Members and Assembly staff 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.

Management of the Scheme shall vest in a Board of Trustees. Board shall consist among others 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 in the country of whom at least two shall not be of the same gender.