The National Assembly’s Social Protection Committee chaired by Hon. Alice Ng’ang’a of Thika Town has received submissions from CPF Financial Services and the National Social Security Fund on the County Assemblies Pension Scheme Bill and the Public Service Superannuation Scheme Amendment Bill.
CPF Financial Services proposed that Parliament adopt the already registered County State Officers Umbrella Pension Fund instead of establishing a new structure. The institution warned that creating another scheme risks reducing member benefits and increasing administrative costs through duplication. CPF urged the committee to retain the existing 31 percent contribution rate on basic salary as a protection for converted gratuities. The firm noted that the proposed 7 percent employee and 15 percent employer split would significantly cut retirement payouts.
NSSF opposed suggestions to exempt some public servants from Tier 1 contributions. The Fund stated that such exemptions would weaken the unified national social security system and reduce collective savings. NSSF pointed to recent growth, double digit investment returns and infrastructure investments as evidence of its contribution to economic development.
During the session, lawmakers were also advised to strengthen governance by refining the appointment process for pension trustees. It was submitted that the County Assemblies Forum should select representatives to ensure the protection of member interests. The committee heard that the schemes should operate as trusts regulated by the Retirement Benefits Authority and not as state social security agencies.
CPF recommended that trustees have the flexibility to select internal or external administrators to avoid high overhead costs for a scheme with roughly 3,000 members. Additional benefits were proposed including post retirement medical cover, group life insurance and a modest car maintenance allowance to support former county officials after completing their terms.
The Social Protection Committee will review the submissions with legal teams to ensure the legislation aligns with constitutional, tax and pension law requirements. Further expert input has been invited before the final report is prepared.
