Munya cautions counties on slow remittance of workers' pension deductions
Governors Peter Munya of Meru (right), Wycliffe Oparanya (Kakamega), Ukur Yattani (Marsabit) and Salim Mvurya of Kwale (left) at a past event. A proposed Bill seeks to have governors sworn in on the first Tuesday, 21 days after winning elections. PHOTO | JOSEPH KANYI | NATION MEDIA GROUP
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County workers' union boss singled out Bomet County as one of the counties delaying remittances.
Meru County boss said there is an important need to safeguard workers’ future especially in retirement.
Council of Governors chairman Peter Munya on Friday cautioned counties to safeguard county workers' future especially in retirement by remitting statutory deductions to pension managers without fail.
Responding to concerns by Kenya County Government Workers Union general-secretary Roba Duba that some counties have been slow to disburse the funds, Mr Munya said the devolved units are bound by law to remit all statutory deductions to pension managers.
Mr Duba singled out Bomet County as one of the devolved units delaying remittances.
The Meru County boss said it was important to safeguard workers’ future especially in retirement.
Mr Munya was speaking on Friday during the Annual General Meeting for the CPF Group retirement benefit schemes at the Kenya Methodist University in Meru.
Vihiga Governor Moses Akaranga and his Kakamega counterpart Wycliffe Oparanya also attended the meeting.
“Counties should remit the monies so that the employees can be assured of a secure future. A situation where there is no remittance is not acceptable,” Mr Munya said.
He noted member funds for the Umbrella Retirement Fund (County Pension Fund) rose to Sh726 million in 2015 from Sh324 million in 2013.
“This is indeed an outstanding achievement. With the direction that we have taken as counties to enrol all employees into the scheme starting June 2016, we anticipate an even more rapid growth of the scheme and consequently more benefits for our employees,” Mr Munya said.
Mr Munya said the counties will soon take over the administration services of the existing schemes to avoid duplication and wastage of public resources in competition by LapFund and Laptrust.
“The schemes will continue to exist, with Laptrust and LapFund operating only as closed schemes and County Pension Fund as the active scheme where all new employees will be enrolled going forward.
“Uniform norms and standards across counties will allow for portability of benefits and smooth movement of employees across counties,” he said.
He added: “As counties and more so, the pioneer governments, we are extremely cautious not to be in contravention of the law; Section 132 of the County Governments Act and Section 49 of Urban Areas and Cities Act are very clear on the matter of retirement benefits for county employees and that forms the backbone of our decision to adopt the County Pension Fund."
(Editing by Joel Muinde)
