The Parliamentary Pensions (Amendment) Bill, 2022
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New Pension or Gratuity Election at Term Start
Under the newly inserted Section 3A, a Member of Parliament must elect at the beginning of their term whether they wish to be paid a pension or a gratuity under the provisions of the Act.
Gratuity Set at 31% of Basic Salary
Under Section 7, members who serve for five years or less, or who elect for a gratuity in lieu of a pension, will receive a gratuity calculated at the rate of 31% (thirty-one percent) of their basic salary for the period served.
Pension Contribution Deduction Rate of 12.6%
For members who elect to receive a pension, Section 4 mandates that a sum calculated at the rate of 12.6% (twelve and three-fifths percent) of their basic salary be deducted monthly and paid into the Consolidated Fund.
Equal Pension Rights for Widows and Widowers
Section 13 is amended to ensure gender-neutral application of survivor benefits, granting widowers of deceased female MPs pension rights equivalent to those previously reserved for widows of male MPs.
Voluntary Post-Retirement Medical Scheme
Under the newly introduced Section 18B, the Parliamentary Service Commission is authorized to establish a voluntary post-retirement medical scheme for Members of Parliament, funded by their voluntary contributions.
Bill No.
No. 48 of 2022
Gazette No.
Supplement No. 173 of 2022
Sponsor
Abdul Rahim Dawood
Background
The Parliamentary Pensions (Amendment) Bill, 2022 seeks to amend the Parliamentary Pensions Act (Cap. 196) to bring it into conformity with the Constitution of Kenya, 2010. The principal Act's current framework largely dates back to a unicameral system; this Bill expands the definitions and structures to systematically include members of both the National Assembly and the Senate. Additionally, it adjusts retirement benefits and aligns scheme administration with the Salaries and Remuneration Commission's recommendations.
Key Amendments
- Scheme Eligibility and Definitions (Section 3): The definition of "child" is amended to raise the eligible age from 16 to 18 years and deletes rules that disqualified married or cohabiting female children. The definition of "member of Parliament" is updated to encompass members of both the National Assembly and the Senate.
- Pension Contribution (Section 4): If an MP elects to receive a pension, a monthly contribution of 12.6% (twelve and three-fifths percent) of their basic salary will be deducted and paid into the Consolidated Fund.
- Gratuity Options (Section 7): Members serving five years or less, or those opting out of the pension scheme, are entitled to a gratuity equal to 31% of their basic salary for the period served. If a member later switches from a gratuity to a pension scheme, they must repay the received gratuity plus interest at 3% per month for 15 months.
- Retirement on Medical Grounds (Section 9): Members who retire on medical grounds can be granted a pension or gratuity before attaining the age of 45, subject to medical board review.
- Death Benefits (Section 11): If an MP dies with less than 12 months of reckonable service, the scheme must pay their legal personal representative an amount equal to their annual salary.
- Administration and Management (Section 19): Administration of the Act is transferred to a Management Committee consisting of the Speaker of the National Assembly (Chairperson), the Speaker of the Senate, four members of the National Assembly, two members of the Senate, the Clerk of the Senate, and the Clerk of the National Assembly (Secretary).
- Appeals Tribunal (Section 20): A reconstituted Appeals Tribunal will hear grievances from the Management Committee's decisions. The Tribunal will consist of the Chief Executive Officer of the Retirement Benefits Authority (Chairperson), the Attorney General, two members appointed by the National Assembly, and one member appointed by the Senate.
New Obligations
- Parliamentary Service Commission Obligations: Under Sections 18A and 23, the Commission takes over the administration of the Act and is empowered to formulate regulations governing pensions, gratuities, and the management of a post-retirement medical fund.
- Audit Requirements: Section 21 requires that all accounts under the Act must be audited by the Auditor-General at least once per calendar year.
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