Parastatals that fail to remit pension will be penalised, RBA boss says
Zachary Ochuodho @zachuodho
Heads of State corporations have up to June 30 to remit pension arrears failure to which they will be penalised.
Retirement Benefits Authority chief executive Mutuku Nzomo said Treasury Cabinet secretary Ukur Yatani last week summoned heads of State corporations to address the matter.
Nzomo said parastatals, that have not been remitting their employees’ pension deductions include universities, counties, sugar firms and retail sector.
Counties failed to remit pension deduction especially during the period when there was a tussle between the National Assembly and Senate over the Division of Revenue Bill.
Speaking yesterday while launching the partnership between Octagon and Alexander Forbes, Nzomo said the low contribution to the pension fund was due to a small workforce in the formal sector.
The strategic partnership comes after Alexander Forbes’ review of its strategic business and operating model in March 2019, and its quest to exit emerging markets and strategically reposition itself with credible partners to deliver and support their clients.
“Through this partnership, we have a platform to work with a network of partners while maintaining the ability to deliver excellent services and solutions to our clients throughout the continent leveraging a single point of contact and efficient and cost-effective solutions,” said Craig Bentley, head of multinational consulting at Alexander Forbes.
