Fix county pension woes
Public service retirees are staring at a bleak future with no financial security after they leave employment. They will be off the payrolls in the 47 counties and will struggle to make ends meet as it is highly unlikely that they will receive any pension soon. This, sadly, is the case despite statutory deductions from their monthly salaries.
Unremitted county pension dues have hit Sh90 billion and continue to mount, with fines and interest on delayed remittances. Contributions have not been made to the Local Authorities Pension Trust (Laptrust), the Local Authorities Provident Fund (Lapfund), National Social Security (NSSF) and the County Pension Fund.
Lapfund is the retirement benefits scheme for county government staff, including members of the county assembly. It takes a 12 per cent contribution from the members and 15 per cent from the counties. The NSSF debt comprises Sh2.7 billion from the counties and Sh18 billion from the defunct local authorities.
Other funds are owed Sh70 billion by the counties. Lapfund has not received Sh50 billion, Laptrust Sh33 billion and the CPF, Sh3.68 billion.
This spells doom for workers, who, ideally, should be looking forward to a well-earned rest after working so hard for years. The Kenya County Government Workers Union is alarmed.
The unremitted pension dues are a part of the pending bills the counties are grappling with. This mess has been gradually building up as laws governing pension schemes are not being followed. It is, therefore, up to the national government to ensure compliance and solve this crisis.
It is unfair since the workers’ pension contributions are deducted from their salaries. Ideally, these are savings that the workers should rely on in old age.
To cushion workers from the corruption and mismanagement in the counties, it would be sensible to require the county governments to deduct and deposit pension funds with a reliable entity such as the Central Bank of Kenya. That way, workers’ future will be secured.
