No hope in sight for retired teachers’ Sh16.7 billion pension money

Attorney General Githu Muigai.

NAIROBI: A major clash is looming Wednesday between MPs and Attorney General Githu Muigai over payment of Sh16.7billionthe Government owes 31,000 retired teachers in pension.

In what may be a major setback for the former Teachers Service Commission (TSC) employees, Githu revealed that the matter had been referred to the Supreme Court for arbitration.

He also distanced himself from claims levelled against him by legislators that he was the stumbling block to teachers ‘dues.

At the centre of the controversy is whether the retired teachers’ pension should be processed based on their last pay at the time they exited service or on what they should have earned after a teachers union successfully negotiated their new pay.

“The question of what salary is to be taken into account in computing the pension due to the teachers is pending before the Supreme Court as both High Court and the Court of Appeal did not resolve this critical issue. The AG is acting for TSC and is not a party per se,” the AG said Tuesday.

This statement effectively suspends the much-anticipated payment even as the National Treasury said the pension money is available.

The fate of Sh6.6 billion for retired teachers’ salary arrears also remains unknown until the Supreme Court’s verdict is known.

Members of the Education House committee have threatened to recommend the sacking of Githu if he fails to ‘appear in person’ today to pave way for the release of the funds to the retired teachers before Christmas.

The AG Tuesday said he is attending an international arbitration conference in Mauritius. This means he would miss today’s meeting.

“I am the head of delegation of the Nairobi International Arbitration Centre team,” he told The Standard on phone.

Committee chairperson Julius Melly said failure by the AG to appear today shall lead to “a serious reprimand and he shall be debated on the floor of the House” for sabotaging teachers’ rights.

The payment controversy follows a successful negotiation for pay rise between the Kenya National Union of Teachers (Knut) and TSC in 1997.

DISPUTE DETAILS

Details of the dispute seen by The Standard show the agreement was gazetted under Legal Notice No 534 and was to benefit all teachers, including those on leave pending retirement and those in the process of being retired, but who were in the service of TSC by July 1, 1997.

The memorandum of agreement reads: “The recommendations embodied in the remuneration order will be implemented over a period of five years with effect from July 1, 1997.”

The total salary reward was to be paid in five phases based on a 150 to 200 per cent for the various job groups. Only the first phase was effected that year and the remaining parts suspended until 2003.

It emerged yesterday that only the first phase was fully paid in 1997 and that the second to fifth phases were not fulfilled immediately.

President Mwai Kibaki’s administration honoured the remaining phases between 2003 and 2007.

However, some of the teachers who had exited service when the balance was paid moved to court claiming the salary deal was struck when they were still in service.

In 2006, some 20 teachers moved to the High Court in Nakuru to push for the payment of their pension money.

The retired teachers argued that TSC declined to add to their retirement benefits the increments, a result of which they are said to have suffered loss.

Also being disputed is which ‘last salary’ paid to the retired teachers should be used to calculate pension payments.

Githu yesterday said the High Court and Court of Appeal did not clarify which last salary should be used and noted that the Supreme Court now holds the key to teachers’ pension. “The problem arose because the agreement gazetted by the Education minister between TSC and Knut had not been implemented by the time most of the teachers retired and the director of pensions can only use the last paid salary in computing pension,” he said.

Melly yesterday said Treasury had confirmed the money to pay teachers’ pension was available.

He said Treasury did not commit to pay the salary arrears until the AG makes ‘certain clarifications in law’.

Last week, the furious MPs asked TSC Secretary Gabriel Lengoiboni to prepare and produce the complete list of all retired teachers affected during today’s meeting.

Controller of Budget Agnes Odhiambo said payment of the money shall be easy once the AG makes the sought clarifications.

“We need him (AG) to help us understand the ‘last salary’ and after that we shall unbundle the stalemate,” she said.

But speaking yesterday, Muigai said: “The AG has no personal interest. He is only the custodian of the law to ensure the legal question is dealt with. And if the Supreme Court say so be it. When the teachers will be paid, I don’t know,” he said.

Melly said: “We want this money paid immediately before Christmas holidays. Many of these teachers have died and we do not want many others to die without enjoying their money.”

Also summoned to appear in person today are National Treasury Cabinet Secretary Henry Rotich and Lengoiboni.