Friday, August 6, 2021 – Members of Parliament (MPs) have done it yet again, after taking full control of their pension payments from the Treasury.
The move gives them a perfect avenue to determine what they will take home when their term expires on August 9, 2022.
The MPs unanimously approved changes to the Parliamentary Pension (Amendment) Bill yesterday, transferring the management of their retirement perks to the Parliamentary Service Commission (PSC) and stripping off the National Treasury of the powers.
The Bill vests the MPs with total power to choose between making monthly contributions and the gratuity payable at the end of each term.
The new gratuity scheme will allow MPs to enjoy an equivalent of 31 per cent of their basic salary for a 60-month term without remitting even a cent to the kitty.
“The payment of pension, gratuity, refund of contributions and other allowances payable shall be provided for in the estimates of the commission (PSC) pursuant to Article 127 of the Constitution,” the changes, moved by Finance committee chair Gladys Wanga, states.
Legislators who opt to remain in the monthly pension scheme will not get the gratuity but will remain in line for a lifelong monthly payout of at least Ksh125,000.
This is under the condition that the lawmaker exits after serving for a minimum of two terms.
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