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MCAs to Be Mandated to Join Tier II NSSF Contributions in Revised Pension Bill

Members of County Assemblies will be compelled to make Tier II contributions to the National Social Security Fund under proposed changes to the NSSF Act.

The amendment, currently before the Senate, seeks to align MCAs’ pension contributions with that of other public officers in a move aimed at enhancing equity and ensuring broader coverage under the national retirement benefits framework.

The revised provision stipulates that MCAs, who have historically been exempted from some aspects of mandatory pension deductions due to the term-limited nature of their service, will now be included in the expanded Tier II contribution category.

This category is designed for employees earning above the Lower Earnings Limit and channels funds to privately managed pension schemes approved by the Retirement Benefits Authority.

Under the current system, public officers including civil servants, teachers, and members of Parliament are required to contribute both Tier I and Tier II deductions.

While MCAs have been contributing to pension schemes through other mechanisms, the proposed inclusion into Tier II formalizes their obligation under the NSSF Act and will require both employer and employee to make monthly contributions based on a set percentage of their salary.

The bill is part of wider efforts to streamline retirement benefits across all sectors of the public service and improve the long-term sustainability of pension systems.

Lawmakers backing the move argue that including MCAs in the mandatory contribution structure promotes fairness, ensures future income security for county legislators, and supports the broader goals of a comprehensive social protection framework.

However, some MCAs have expressed concern over the timing of the changes, citing ongoing debates over remuneration and term limits. Others have raised questions about the management of Tier II funds and the performance of fund managers tasked with handling the contributions.

If passed into law, the amended NSSF Act will create a uniform standard for pension contributions across all tiers of public representation, reinforcing the government’s push toward universal pension coverage and retirement savings.

Implementation will require close coordination between the County Assemblies Forum, the National Treasury, the NSSF, and the Salaries and Remuneration Commission.

Written By Ian Maleve

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