SRC writes to MPs, objects to retirement package plan

By MWANIKI MUNUHE

Kenya: Parliament’s plans to pay out billions of shillings to retiring State officers are just seven amendments away from getting the nod from the salaries commission.

The real cost of the changes, projected at Sh11 billion over the next 25 years, could rise dramatically if another draft bill in the works succeeds in wrestling control of MPs, judges and magistrates’ pay from the salaries team.

The Salaries and Remuneration Commission has written to Parliament, listing its objections to plans to set new retirement benefits for eleven State officers.

In a report to the parliamentary committee on finance and planning, SRC says that the benefits proposed in a controversial draft bill cannot be sustained. The commission points out the House bill, submitted two weeks ago, would cost billions more than a competing Treasury proposal prepared in April.

SRC has suggested seven changes to the proposed law retirement benefits for the Deputy President and other designated state officers.

They include basing former Prime Minister Raila Odinga’s benefits on his pay as at the time of leaving office, not on the current Deputy President’s salary; excluding the deputy speakers of the National Assembly and Senate, the Deputy Chief Justice, Attorney-General and Chief of Defence Forces; computing benefits on the basis of basic pay, not consolidated salary, and providing for the benefits to be suspended if the officer gets a State job; and subjecting the benefits to taxation and limiting the number of support staff the designated state officers are entitled to in retirement.

Guide payment

The net effect of the changes will save in excess of Sh279 million annually.

“Given the costs associated and the high number of beneficiaries, it is not likely that the benefits can be supported,” SRC says in the report, a copy of which we obtained. “Besides, (paying more people) sets precedence and possible agitation for inclusion by other state officers.”

The commission says the retirement benefits for former Prime Minister Raila Odinga proposed in the House bill should be based on his pay at the time of leaving office, not on the current salary of Deputy President William Ruto.

“SRC’s position is that benefits should be pegged on salary obtaining by the member in the office the member served,” reads the report. Parliament has proposed to work out Raila’s house allowance based on Ruto’s salary.

The commission has also proposed introduction of a clause in the draft bill that would guide payment of retirements benefits to an officer who after retirement, has been appointed to another state office.