Transition Authority chairman Kinuthia Wamwangi at a past event. A
letter from him says the decision to turn Laptrust into an umbrella
pension scheme for county workers was a departure from the
recommendations of the technical committee. PHOTO | PHOEBE OKALL | FILE
NATION MEDIA GROUP
A row has erupted between government
agencies and the Council of Governors over the latter’s decision to turn
a former local authorities’ workers scheme into a pension fund for
public servants in counties.
The council formed a technical committee, which recommended that Laptrust be converted into a county workers’ pension scheme.
But the council went ahead and changed it and is in the process of changing its name to the County Pension Scheme.
This
development has sparked protests from stakeholders, including the
Retirements Benefits Authority (RBA), Transition Authority and the State
Law Office among other agencies.
A letter from the
Transition Authority chairman Kinuthia Wamwangi, says the decision to
turn Laptrust into an umbrella pension scheme for county workers was a
departure from the recommendations of the technical committee.
Mr
Wamwangi’s letter, addressed to Deputy President William Ruto, says the
technical committee made elaborate proposals on the modalities of
establishing a retirement scheme that would meet the requirements of all
staff employed by county governments.
PUBLIC ENTITY
However,
it has emerged that Laptrust has since been changed to County Pension
Scheme Financial Services, a development that has been questioned by
Attorney-General Githu Muigai.
In a letter to the RBA
secretary, Prof Muigai seeks opinion on whether Laptrust is a government
institution or a private entity and also whether Laptrust
Administration Services Ltd, wholly owned by the Laptrust Retirement
Services Ltd, is a government ministry or a purely private enterprise.
The
AG in his advisory says Laptrust is a public entity as it was
established under the Local Authorities Pension Trust Rules, 2007.
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