A group of savvy county assembly members
have pocketed Sh300 million in pension savings after they opted to
enroll in a self-contributory scheme to cushion themselves from
financial shocks.
County workers’ pension fund manager,
CPF Financial Services says it has already paid 600 ward
representatives dues, with the average payout being a lump sum of Sh1.06
million.
The payments come as a relief to county
assembly members who have faced a bruising and cash intensive campaign.
More than 1,000 MCAs out of the 1,450 elected members losing seats in
the General Election.
The pension earnings will also
offer a lifeline to the regional assembly legislators as they wait for
their gratuity, calculated at 31 per cent of annual basic pay, which is
likely to delay as the new county bosses settle into office.
“These members (MCAs) have since claimed and received their payments,” CPF chief executive officer Hosea Kili told Business Daily.
CPF, formerly known as the Local Authority Pension
Trust (Laptrust), disclosed the average saving per member was Sh20,000
monthly, about a fifth of ward representatives’ basic pay of Sh105,600 a
month.
“It also protects the member from the
disadvantage of having to chase payments from new office holders, whose
first priority may not be to pay outgoing members,” said Mr Kili.
The
counties pension fund is wooing incoming assembly members to enroll in
the CPF individual scheme, saying such savings benefit from tax relief,
earns interest and prompt payment.
Unlike occupational
pension schemes, individual plans are flexible and allow members full
access to their entire cash at the end of the term, according to
guidelines issued by the Retirement Benefits Authority.
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