Social Protection Committee engages KARO on bill that seeks to peg civil servant’s pension on inflation

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Social Protection Committee engages KARO on bill that seeks to peg civil servant’s pension on inflation

The National Assembly Committee on Social Protection on Tuesday, November 12 met with the Kenya Association of Retired Officers (KARO) to discuss their submissions on the Pensions (Amendment) Bill, 2024.

The Bill, sponsored by Matuga MP Kassim Sawa Tandaza, seeks to amend the Pensions Act (CAP 189).

The goal of the Pensions (Amendment) Bill, 2024 is to introduce an automatic cost of living adjustment to pensions for public servants and update pension calculations based on the latest salary applicable to a retiree’s job group. The focus is on achieving more sustainable support.

The Bill sponsored by Matuga MP Kassim Sawa Tandaza states that any Government officer entitled to pensions, gratuities, or other allowances shall receive an automatic cost-of-living adjustment increase when inflation rates justify such an adjustment.

KARO raised critical issues facing retirees, highlighting the difficulties many elderly individuals encounter due to low pension payouts. They provided an example of an 80-year-old retiree receiving KSh4,000 monthly, emphasizing how insufficient pensions compromise access to healthcare and increase dependency on family members.

KARO expressed concern about Section 1E of the Pensions Act, which currently applies only to officers retiring after the section’s commencement.

KARO urged the Committee to amend this provision to ensure it covers all retirees, safeguarding against discrimination and ensuring equitable access to pension benefits.

The Committee is scheduled to meet National Treasury and other stakeholders next week to further explore the proposed amendments.

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