A proposal to introduce a pension scheme for Ward Representatives is encountering resistance in Parliament, with lawmakers questioning the financial burden it may impose on county budgets.

The County Assemblies Pensions Scheme Bill, 2024, seeks to establish a contributory social security plan for Members of County Assembly (MCAs), but concerns have been raised over its impact on development funding at the county level.

The Bill outlines a pension arrangement where an MCA would contribute not less than 7.5 per cent of their pensionable salary, while the county government, as the sponsor, would contribute at least 15 per cent.

These contributions are to be deducted monthly from the member’s salary and remitted to the scheme. If the sponsor delays the remittance, interest will be applied, and any outstanding amounts, including interest, would be treated as civil debt recoverable by the board.

Payments from the scheme would be made through annuities, income drawdowns, gratuity, or a one-time lump sum, in line with the Retirement Benefits Authority regulations. MCAs currently in other schemes, including the Local Authorities Provident Fund and the Local Authorities Pension Trust, will be transitioned into the new scheme within a year once the Act takes effect.

However, a review by National Assembly analysts questions the practicality of implementing the proposed scheme.

They argue that county assemblies would be forced to allocate a significant portion of their budgets to meet the required contributions.

As a result, this would compel counties to reduce funds meant for development to accommodate the pension obligations.

“The Bill is likely to hinder development in counties, considering the quantum of the mandatory statutory obligations, hence necessitating reallocation of resources,” reads the analysis.

The experts also pointed out that the required contribution from county governments—no less than 15 per cent of each MCA’s pensionable earnings—is higher than what most other public service employers are mandated to contribute, further raising equity and sustainability concerns.