The Supreme Court has struck down a law subjecting pension schemes sponsored by public entities and State corporations to the strict public procurement system, ruling that workers’ retirement savings are private trust funds and not public money despite being linked to State employers.
In a landmark ruling expected to reshape governance, investment operations and oversight across the country’s retirement benefits sector, the court held that pension schemes handling funds from government workers are not public entities subject to procurement laws.
The divided five-judge bench led by Chief Justice Martha Koome ruled that pension funds linked to public entities are not public money subject to the Public Procurement and Asset Disposal Act (PPADA).
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