The National Assembly has approved the Pensions (Amendment) Bill, which introduces a new requirement for processing retirement benefits within 90 days of when they become due.
This bill, sponsored by Kimilili MP Didmus Barasa, aims to speed up the pension payment process by setting a clear deadline for disbursements.
Under the new legislation, government ministries and departments must submit all necessary documentation to the Pensions Department within 30 days of an employee’s retirement.
The Pensions Department will then have up to 60 days to process and disburse the pension payments.
This change is designed to address the longstanding delays that retirees have faced in receiving their pension funds.
According to the National Assembly, the bill does not grant any additional legislative powers nor does it restrict fundamental rights and freedoms.
It is primarily concerned with the operations of county governments as specified in Article 110(1) (a) of the Constitution.
Importantly, the bill is not classified as a money Bill under Article 114 of the Constitution, which means its implementation will not require additional public funds.
The current system lacks specific deadlines for pension payments, leading to a significant backlog.
The situation has been worsened by the recent reduction in the retirement age from 60 to 55 years, leaving many retirees waiting for over five years to access their pension funds.
The new bill is expected to alleviate these delays and provide retirees with more timely access to their benefits.
By setting a clear 90-day timeline for pension processing, the amendment seeks to improve efficiency and ensure that retirees receive their funds promptly after their retirement.
This legislative change reflects a commitment to addressing the issues that have plagued pension payments and improving the overall experience for retirees.
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