- Tens of millions of pensioners in Uganda will proceed decrying delayed cost of their month-to-month dues.
- A brand new Invoice in search of to streamline the pension system in Uganda was withdrawn for additional scrutiny by the Govt.
- The target of the brand new Invoice was to offer for the institution of a public service pension fund and a public service pension scheme.
Pensioners in Uganda might need to proceed decrying delayed cost of their month-to-month dues whereas the federal government continues to battle ghost claims on the payroll following the withdrawal of a brand new Invoice.
The Public Service Pensions Fund Invoice, 2023, launched on March 14, and aimed toward implementing a compulsory contribution system for public servants’ pensions has been withdrawn.
Uganda pensioners cost shall be immediate
That is regardless of the proposed regulation present process important modifications throughout the committee evaluate. The withdrawal aggravates the ache for pensioners who had been banking on the brand new regulation to get their dues. In response to article 254 of Uganda’s Structure, a public officer shall, on retirement, obtain pension. The supreme regulation say the pension shall be commensurate with their rank, wage and size of service. Moreover, it says the cost of pension shall be immediate and common and simply accessible to pensioners.
The Invoice desires each public servant to contribute 5 % of their gross wage to a pension fund every month. Below the brand new regulation, the federal government’s contribution might be lower to 10 % of worker’s gross pay. This is able to mark a departure from the present system the place the federal government contributes one hundred pc to the pension fund.
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The Deputy Speaker, Thomas Tayebwa whereas presiding over plenary on Tuesday, Could 23, 2023 stated that over 60 % of the Invoice had been modified by the Committee on Public Service and Native Authorities.
“I’ve famous that the proposed amendments are quite a few and considerably change the content material and subject material of the Invoice thereby altering the Invoice that was revealed and launched by the federal government for first studying,” Tayebwa stated.
Uganda owes pensioners $119 million
In response to the Auditor-Common John Muwanga, the federal government owes pensioners $119 million. In June 2022 audit, Muwanga stated pension liabilities elevated by 173 % to $119 million from $43.5 million in 2021. However with the brand new Invoice, these liabilities can be lower by nearly 90 %.
The Invoice seeks to ascertain a public service pension fund and a public service pension scheme. It additionally sought to offer for the gathering of contributions to the fund and cost of retirement advantages to pensioners and their survivors in a means much like the Nationwide Social Safety Fund (NSSF). The Invoice additional sought to offer for the funding of the monies of the fund to generate revenues.
Lawyer-Common Kiryowa Kiwanuka, upon request, formally withdrew the Invoice, expressing no objections. He acknowledged the monetary implications of the amendments and counseled the committee’s work. He stated the Govt will scrutinise the Invoice totally and promised its reintroduction at an applicable time. Tayebwa emphasised the significance of the Invoice and urged the Govt to expedite its evaluate.
Public Service Pension Fund
The Home committee outlined a number of suggestions, together with the prohibition of borrowing by the pension fund’s board. This, the lawmakers stated, would assist keep away from excessive rates of interest and borrowing dangers.
MPs additionally sought to alter the date for month-to-month contributions to fifteenth of the next month to stop delays in wage disbursement.
The proposed Public Service Pension Fund would function equally to the non-public sector’s NSSF.
Public service minister Wilson Muruli Mukasa stated the general public service pension scheme has offered a number of challenges. For example, its governance accountability and sustainability owing to its non-contributory character by public servants. MPs consider the proposed regulation is a well timed authorized reform of the pension sector.