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{
    "id": 862302,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/862302/?format=api",
    "text_counter": 332,
    "type": "speech",
    "speaker_name": "Sen. Sakaja",
    "speaker_title": "",
    "speaker": {
        "id": 13131,
        "legal_name": "Johnson Arthur Sakaja",
        "slug": "johnson-arthur-sakaja"
    },
    "content": "There are two types of pension schemes; that is, the Defined Benefits (DB) and the Defined Contributions (DC) schemes. You cannot mix a DB and DC scheme. However, what we have agreed to do is the two DC schemes will come together. The DB were actually closed by a circular of the Treasury a few years ago. In fact, the world over, the DB schemes are being phased out because of the complexity and actuarial evaluations you have to keep doing. The process is very complex. Therefore, we are moving away from that to a more stable and clear scheme where you know what you are going to get at the end of it. Mr. Deputy Speaker, Sir, the one DB scheme that exists will not have any new members. It will be phased out until the last member has received his contribution. There were concerns by some of the county government workers who are in these schemes on whether they are protected. Some allude to the fact that we are moving the money, but not the membership. That must be provided for clearly. I agree that some of these amendments that the Senate Majority Leader is talking about are things that we need to look at within the context of the process of legislation. Once we do that, then we have to go back to mediation and agree with the National Assembly. However, that should not hold us back from looking at what we must critically address. One of the issues the Senate Majority Leader talked about in the composition of the board, with respect to the representatives, is an error. When the velum was being processed in the National Assembly, we noted that error. If you look at the HANSARD, from the original Bill to the amendments, that was not amended. The Secretariat cannot amend what the House has not done. So, we will make sure that, that is corrected technically. Mr. Deputy Speaker, Sir, I will move on to wind up because this is a Bill whose content we have debated in this House, but not the Bill itself. Some of the concerns was that, we have said that the minimum amount that shall be sent in terms of contribution because this is a DC scheme, is 7.5 per cent from the workers contribution and 15 per cent from the employer. Some of the county government workers were concerned, that this goes against their Collective Bargaining Agreements (CBA’s) which talks about a higher contribution from themselves. I would like to assure them that this talks about a minimum amount. So, if you have a CBA where you have set the amount with your respective employers- and this is why I have kept insisting that county governments must recognize the unions that have the simple majority of the staff- once you have a CBA that has set an amount for that contribution, that is what is going to hold. I want to affirm it for avoidance of doubt and in the abundance of caution; we will make sure that it exists in the regulations that will accompany this Bill."
}