The Treasury had set aside Sh2.8 billion in the budget as gratuity cash, guaranteeing each MP Sh6.7 million at the end of term.
The SRC ruled that the lawmakers must decide whether they want gratuity or pension. Some members of the 10th Parliament that came to a close in 2013 walked away with both pension and gratuity, pushing their earnings above Sh10 million.
Lawmakers are deducted 12.75 per cent of salary monthly for their pension, which is matched by the State.
The law provides that those who have served for less than two terms get a refund of their contribution and annual interest of 15 per cent.
One-term MPs who lost their seats in the August 8 elections have taken a cut on their pensions after the Treasury opted to refund them their contribution of Sh4 million after tax deductions.
The Pensions Department Monday said it had processed the retirement dues for 208 ex-MPs with the majority being those who had served for one term.
The Salaries and Remuneration Commission (SRC) had asked MPs to choose either a Sh6.7 million end-of-term pay or a refund of their contributions.
The SRC ruled that the lawmakers must decide whether they want gratuity or pension, prompting the Parliamentary Service Commission (PSC) to opt for the smaller refund of their retirement contribution.
“The one term MPs were paid slightly above Sh4 million. Their total refunds that included their contributions and government contributions,” said the Pensions Department.
“About 209 former MPs applied for refunds and we have processed and paid 208 of them.”
The Treasury had set aside Sh2.8 billion in the budget as gratuity cash, guaranteeing each MP Sh6.7 million at the end of term.
The SRC ruled that the lawmakers must decide whether they want gratuity or pension. Some members of the 10th Parliament that came to a close in 2013 walked away with both pension and gratuity, pushing their earnings above Sh10 million.
Lawmakers are deducted 12.75 per cent of salary monthly for their pension, which is matched by the State.
The law provides that those who have served for less than two terms get a refund of their contribution and annual interest of 15 per cent.
