The Local Authorities Provident Fund (Amendment) Bill, 2026

7 Sep 2026 domainNational Assembly No. 61 of 2026 Gazette: Supplement No. 220 of 2026
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Proposed

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Public Review

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Debate

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Executive

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Final

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1

Minimum Employee Contribution Fixed at 7.5%

Every contributor must contribute a sum of not less than 7.5% of their pensionable emoluments to the renamed County Governments Retirement Fund.

2

Fund Administration Expenses Capped at 2.5%

The administrative and management expenses of the Fund are strictly capped at a maximum rate of 2.5% of the total value of the Fund, subject to rates prescribed by the Board.

3

Sponsor Contributions Capped at 20%

Sponsoring employers are required to make monthly contributions that do not exceed either twice the employee's contribution rate or 20% of the employee's pensionable emoluments, whichever is lower.

4

Broadened Retirement Benefit Options

The newly introduced Section 4A specifies that benefits under the Act include:

  • Periodic payments through the purchase of an annuity
  • Lump-sum commutations of pension or trivial pension
  • Income drawdowns
  • Gratuities
  • Other benefits approved by the Board in concurrence with the Retirement Benefits Authority

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