The High Court has ruled against a proposal by governors and deputy governors in a petition filed by the Council of Governors (COG) against the Salaries and Remuneration Commission (SRC).
A ruling by Judge L. N. Mugambi indicated that retiring governors and deputy governors at the county level are not entitled to a Defined Benefit Pension Scheme.
The governors petitioned for a pension and benefit scheme similar to one enjoyed by State officers at the national government level.
However, the SRC argued that although governors and deputy governors are state officers, it is not automatic that each State officer has to be treated the same way regarding retirement benefits.
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Court Gives Reasons for Denying Governors Benefits
According to the court, the proposed Defined Benefit Pension Scheme for governors and deputy governors is neither affordable nor fiscally sustainable.
“If implemented, the proposed scheme would have had a ripple effect on all State officers at both the national and county government levels, leaving little resources for development and service delivery,” ruled the court.
According to the ruling, the proposed scheme for governors and deputy governors would impose a significant burden on future administrations and generations, as they would be responsible for funding a lifetime benefit.
Moreover, SRC stated that the existing gratuity already provides sufficient social security.
“Additionally, this would also have meant that each turnover of a governor and deputy governor during each election period would have added to the pool of freshly elected individuals eligible for lifetime pension benefits, hence, straining the public finances,” added SRC.
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Alternatives Offered by SCR
On the other hand, the Salaries and Remuneration Commission has indicated that the governors and their deputies be paid a service gratuity at the end of their terms.
The payment will be at the rate of 31 per cent of annual basic pay for every year served.
“Therefore, SRC avers that governors and deputy governors are paid a service gratuity at the end of their terms at the rate of 31 per cent of annual basic pay for every year served.
“Should they desire, an additional option also exists for governors and deputy governors to opt to join a direct contributory benefit scheme,” noted SRC.
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