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{
    "id": 568296,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/568296/?format=api",
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    "content": "managed in accordance with the provisions of this Act as well as those of the Retirement Benefits Act and any other law. The Board must also take reasonable care to ensure that the management and safe keeping of the assets of the Scheme is carried out in the best interest of the members, among other requirements. These are usual provisions. When you have a trusteeship as is in this case, the Board of trustees are maintaining and providing policy guidelines on the assets and funds of this Scheme on behalf of the members. When you have an arrangement like that, it is important that those trustees be governed by some duty of care to ensure that the assets are not mismanaged and also to ensure that the funds of this Fund are invested wisely. We have in the past seen how some of the retirement arrangements that there have been, including the national retirement under the NSSF, issues of mismanagement or unwise spending or investment of workers pension money. Mr. Temporary Speaker, Sir, clauses 50 and 51 downwards provide for the protection from personal liability on the part of the trustees so that a member of the board of trustees or employee of the scheme, if they act in good faith for the purposes of carrying out the provisions of this Act or any other law cannot incur personal liability. That is a common provision you will find within the law creating such institutions, including independent commissions. They must have functional immunity when they are exercising their functions so that you do not visit a decision of the Board. The consequences of a decision of the Board cannot be visited against a trustee. Of course, that does not cover criminal activities. I can go on and on, but I think the most important thing is to say that there are also some transitional provisions which include repealing the current Cap.272 – The Local Authorities Provident Fund which establishes the LAPFUND, but also repealing the Legal Notice of 2007, No.10, that establishes LAPTRUST. The whole idea here is to close the existing schemes to new members, so that going forward, the new scheme will be able to recruit new members and the old schemes can wind up their activities through a transition period to ensure that old members get their pensions. Until they pay the last member that is the time they can be wound up. In the meantime, you have a new scheme which all the employees of county governments can subscribe to and save their retirement benefits and have them secured by a board, a fund manager, a custodian, a fund administrator and so on, and so forth. Without much ado as I promised, I want to end there and pray that the last stakeholder meeting that I am informed the Committee will be holding soon will go on as scheduled so that we can continue with the finalization and Third Reading of this Bill. With those few remarks, I beg to move and request the Chairman of the Committee on Labour and Social Welfare who is also the Senator for Kilifi County to second. Thank you."
}