This archive report was first published on 2 November 2019.
On October 23, 2019, the Local Authorities Provident Fund (Lapfund) announced its decision to take over the management of retirement benefits for county employees, sparking a heated debate between the Council of Governors and the Treasury.
According to a statement by the Council of Governors, Lapfund's decision violates the Constitution by presenting itself as the new manager of county retirement schemes under the banner of 'County Government Retirement Scheme (CGRS)'. The Council of Governors, led by Chairman Wycliffe Oparanya, has come out strongly against the move, terming it 'mischievous' and 'calculated to misrepresent facts'.
'The advertisement is misleading to the extent that it purports that County Government Retirement Scheme is the successor of Lapfund,' Oparanya said. 'On the contrary, the CGRS, as per the County Governments Retirement Scheme Act (2019), is set to be the new entity managing both Laptrust and Lapfund, adding that CGRS is not a continuation of Lapfund.'
Furthermore, Oparanya clarified that Lapfund is a national government State corporation domiciled at the National Treasury, and that county governments have their own pension fund—the County Pension Fund—where over 50,000 county employees have joined thus far.
He also maintained that the decision by county governments to adopt and jointly own the County Pension Fund 'still stands and has not been varied.'
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