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{
    "id": 132980,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/132980/?format=api",
    "text_counter": 351,
    "type": "speech",
    "speaker_name": "Dr. Oburu",
    "speaker_title": "The Assistant Minister for Finance",
    "speaker": {
        "id": 194,
        "legal_name": "Oburu Ngona Odinga",
        "slug": "oburu-odinga"
    },
    "content": "The advantages of retaining this money are as follows: It ensures that the original intent of the employer to provide a retirement pension is achieved even if a member transfers the money to another scheme. This point is important because there are Members who allege that members who retire are not allowed to transfer their benefits to other schemes. The current regulations allow members who leave employment before attaining retirement age to transfer their benefits to the next scheme. Madam Temporary Deputy Speaker, it also ensures that retirement benefits remain protected from creditors. It ensures a large benefit at retirement due to the power of compounding over a long period. It was alleged here that these benefits are not compounded. That is not true. It is compounded and members enjoy that. It also reduces old age poverty and caused pressures on the Government programmed for old age income. It also allows schemes to invest in long term assets due to the reduced demand for liquidity.That is true. In the last Budget, the Deputy Prime Minister and Minister for Finance introduced regulations to force the retirement benefits schemes which are funded by public institutions to invest in long-term Government bonds. So, some steps are being taken to that effect. That enhances the long-term mobilization of domestic savings in the economy. That is something which we cannot over-emphasize. I also want say that, in addition, it is worth to note that the rationale for re- introducing preservation of benefits vide Legal Notice No. 57 of 8th June, 2005, was informed by the findings by three consecutive pensioners surveys administered by the Retirement Benefits Authority (RBA). The survey findings showed that many retirees who are members of retirement schemes do not earn adequate benefits in return. The surveys further revealed that the primary cause of low benefits at retirement was frequent access and consumption of saved retirement benefits during working life, following the change of jobs. Madam Temporary Deputy Speaker, those were the finding of that survey, and it informed the changes which were, therefore, made by the Ministry. We are now supporting this Motion, as amended. I do not want to go into the details. What I had"
}