President William Ruto has assented the Judges’ Retirement Benefits Bill into law, effectively introducing a cost-of-living-adjustment for pensions of all retired judges.
The new law seeks to establish a dedicated pension framework for judges of the superior courts and whose annual pension will be adjusted to a factor of inflation. It also seeks to give preferential treatment to retired judges over public servants who are not entitled to similar benefits.
It will see retired judges enjoy an increment on their pension capped at five percent. Currently, pension reviews are undertaken every two years in line with the Pensions Increase Act (Cap. 190); it provides for a three percent increment for all pensions, along with any previously granted increases.
It also stipulates that judges exiting service due to mental or physical incapacitation shall be entitled to at least 50 percent of what they would have received had they served for at least 10 years and left upon reaching the retirement age of 65 years.
During the signing at State Hous eon Monday, President Ruto said he was glad that judges would join other Kenyans in a pension scheme, which he noted will give judges the same benefits enjoyed by other Kenyans.
"Now we have a legal framework that will give the opportunity for our judges to serve in an environment where they know their future and retirement is guaranteed,” he said.
"The new law establishes a Judges’ Retirement Benefits Fund for judges appointed after the commencement of the Act, with judges contributing 7.5 percent of their basic salary and the government contributing 15 percent."
The Bill, which was sponsored by National Assembly Majority Leader Kimani Ichung’wah, protects the accrued pension rights of serving judges, ensuring that their benefits cannot be varied to their disadvantage.
Judges in office at the commencement of the Act will remain within the existing defined benefits pension regime administered under the Pensions Act.
The new law also establishes a contributory retirement scheme for future judges through the creation of a Judges’ Retirement Benefits Fund. The fund will be administered by a Board of Trustees and provides retirement benefits through a structured contributory scheme designed to ensure long term fiscal sustainability.
The Act also provides non-pension benefits for judges, including medical cover, diplomatic passports and access to government VIP airport lounges.
