The Supreme Court, by a majority decision, declared that pension schemes of public entities are not public bodies subject to the Public Procurement and Asset Disposal Act. The Court’s finding was based on, among other reasons, that pension funds are not public money but private property of the contributors.
While for most pension schemes sponsored by public agencies it may be business as usual with the potential of improved efficiencies, it exposes gaps for the two State sponsored pension schemes being National Social Security Fund (NSSF) and the Public Service Superannuation Scheme (PSSS).
The decision highlights the need to review their existing policies, frameworks procedures and systems as well as financial reporting and oversight frameworks to align with the position that their respective Board of Trustees, established as state corporations, are separate from the pension scheme. It signals a change in the way they conduct their business.
In our article below, our Partner Doreen Onwong’a and Associate Celestine Chweya examine the Supreme Court’s reasoning and practical implications of the Judgement on the running of the two state sponsored pension schemes.
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Thank you
The G&A Team