In Summary

• The retirees staged demos demanding  prompt remittance of their money to Lap Trust.
• Union claim County Government of Nairobi owe Lap Trust 27 billion shillings.

The Nairobi County Government retirees are grappling with pain of not getting their retirement benefits this is after their employer allegedly failed to remit about 27 billion shillings to employees retirement scheme managed by by Lap Trust.

Today the old men and women pitched camp at City Hall demanding prompt remittance of the funds so that they can access their benefits.

According to Nairobi County Government Workers Union Secretary Festus Ngari, the retirees  are distressed and their health is deteriorating day by day .

“This is hitting hard on retired, RETIRING and future retirees. The distress starts when you exit the payroll with legitimate expectations that all the money you have been paying in statutory deduction being 12% from your salary and 15% contribution by employer is waiting for you at your 60th birthday. Sadly, the record at LAPTRUST DB scheme indicates that the employer never remitted ksh 9 billion together with interest and penalties amounting to another 18 billion. Total 27 billion. Attempt by scheme trustees to collect the remittances have fallen on deaf ears 👂 with promises that are never honored. Retirement Benefits Authority went into slumber decades ago after it’s formation.’’ Ngari said.

Governor Must Act

Ngari  has called on governor Sakaja to remit the 27 billion shillings to Lap Trust as earlier promised.

They are adamant to take the matter to legal corridors saying many legal firms are paid much money in Cityhall more than the value of the cases.

“The union intends to stage a vigil at the Governor until he softens his heart noting that it’s not a favour these former employees are asking for…Employment Act provides for retention of employees in the payroll on temporary terms to await the processing of terminal dues…In this case employees are sent to the scheme where they are returned to the employer arguing that the scheme is in actuarial deficit for lack of funds to invest!The union is opposed to legal processes because county lawyers will be paid alot of money in legal fees more than the amount payable to retirees as that has been the trend. Lawyers consume a very big chunk of county revenues. The union is asking asking the president, deputy president, governor and all leaders of goodwill to come and rescue helpless, voiceless senior citizens from the tragedy.’’ Ngari added.