Moses Omusolo
Governors have picked a fight with the Local Authorities Provident Fund
(Lapfund) over its decision to take over the management of retirement
benefits of county employees.
In a statement published in the dailies yesterday, the Council of
Governors accused the fund of violating the Constitution by
presenting
Lapfund as the new manager of county retirement schemes under the banner
of “County Government Retirement Scheme (CGRS)”.
“The Council of Governors (CoG) notes with utmost concern of the
publication…on October 23, 2019 to the effect that Lapfund is now County
Government Retirement Scheme (CGRS).
We wish to notify all county governments, their employees and the
general public that the advertisement is mischievous and is calculated
to misrepresent facts…,” said CoG chairman Wycliffe Oparanya.
Existing schemes
Oparanya further said the disputed advertisement is “misleading” to the
extent that “it purports that County Government Retirement Scheme’ is
the successor of Lapfund”.
On the contrary, the CoG chair said the CGRS, as per County Governments
Retirement Scheme Act (2019), is set to be the new entity managing both
Laptrust and Lapfund, adding that CGRS is not a continuation of Lapfund.
“[The Act] provides for the closure of Lapfund and Laptrust scheme while
establishing a new entity to which these existing schemes currently
serving county employees will eventually merge,” said Oparanya.
“Lapfund is a national government State corporation domiciled at the
National Treasury. County Governments have their own pension fund—the
County Pension Fund—where over 50,000 county employees have joined thus
far.”
Oparanya also maintained that the decision by county governments to
adopt and jointly own the County Pension Fund “still stands and has not
been that varied.”
momusolo@standardmedia.co.ke
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