WEEKLY UPDATE - udnsite.files.wordpress.com...National Social Security Fund Act, Cap. 222. Uganda...
Transcript of WEEKLY UPDATE - udnsite.files.wordpress.com...National Social Security Fund Act, Cap. 222. Uganda...
A way from last week where we
remained concerned about
scandals in Pension Sector in
Uganda, in Part II we look at the viability
of liberalisation strategy towards cleaning
up the Pensions Sector . During the 9th
Parliament, the Retirement Benefits Sector
Liberalisation Bill , 2011 was tabled to
push the diversification agenda of having
many key players provide social security
services to all Ugandan Citizens. With the
coming into force of the 10th parliament,
this Bill is bound to bounce back on the
floor with proposed reforms that will
significantly alter the way retirement
income is secured for retired workers in
Uganda.
Specific objectives of the Bill are; to allow
private pension schemes to receive
mandatory retirement contributions;
provide for competition among licensed
retirement benefits schemes for mandatory
contributions; allow an employee to choose
a Retirement Benefits Scheme of his or her
choice; provide for annuity as an
alternative to lump sum payment of
retirement benefits; to provide for early or
mid-term access of up to 30 percent of an
employee’s retirement benefits; provide for
transfer of retirement savings from one
scheme to another in Uganda and EAC;
repeal the Pensions Act, Cap 286 and
convert the public service pension scheme
into a contributory scheme and repeal the
National Social Security Fund Act, Cap.
222.
Uganda Debt Network, alongside other
CSOs like Uganda National NGO Forum,
WEEKLY UPDATE V O L U M E 1 . I S S U E 5 0 29th February—4th March, 2016
EDITORIAL
Proponents of Liberalisation of the
Pensions Sector argue that this
strategy will be more inclusive with
more workers saving for retirement.
With NSSF securing less than half a
million workers savings, this
argument is valid. However this
should not be looked at in isolation of
other factors that make liberalisation
questionable like risk of workers’
savings. It is also argued that
diversification of the Pension Sector
will open window for developmental
pension reforms.
Liberalisation opens the operating
space to all commercial players for
purposes of profit maximisation and
this will involve risky investments that
could affect the workers’ savings in
the long run. We keep asking
rhetorically; Is liberalisation of the
Pension Sector viable in ensuring
proper accountability in the Pension
Sector in Uganda?
EDITORIAL TEAM
Julius Kapwepwe—Director of Programmes
Gilbert Musinguzi—Quality Assurance Manager
Adellah Agaba—Communications Officer
Umwiza Elizabeth—Intern
we remain convinced that good policy
reforms in retirement benefits sector
should aim at improving coverage,
reducing costs of administration,
improving benefits and enhancing
efficiency for the entire population and
advance equitable and gender responsive
economic growth and development. We
continue to ask ourselves as to whether the
proposed reforms under the Retirement
Benefits Sector Liberalization Bill, 2011
will expand coverage; improve the amount
or adequacy of benefits; reduce
management and administration costs and
above all reduce risk and improve
efficiency in social security management.
Private pension schemes risky: The
decisions and actions of private pension
firms and fund managers are motivated by
the goal of profit maximization and not
securing the retirement income of workers.
It will therefore be socially and
economically dangerous to put the
mandatory contribution of workers in the
hands of firms that will place them in
investments that might be legally
permissible but practically very risky.
Individual choice of an appropriate
retirement plan: The Bill provides that
every employee in the formal sector shall
register with a licensed retirement benefits
scheme of his or her choice and shall make
regular contributions to the retirement
benefits scheme. Although, the right to
contribute to scheme of one’s choice will
give workers control over where their
money is saved, it will also leave them
with a duty to take decisions with
potentially high risk outcomes. How many
Ugandans understand the concept of
Liberalisation?
So, which way for Uganda? Next week we
will explore more in Part III of the series.
Improving accountability in Pension sector in Uganda: Liberalisation strategy?
(PART II)
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UDN INTERNETWORKING ACTIVITIES
UDN’s Ms. Esther Mufumba taking part in the Non-
State working group involved in Agriculture
Extension Services advocacy, Imperial Royale Hotel,
February 2016.
UDN’s Ms. Maureen Agaba and Sandra
Coote in a Transparency International
Uganda (TIU) organised workshop on
“Opportunities and Threats to Civil
Society Space”, Hotel Africana,
February 2016.
UDN’s Ms. Peninah Mbabazi, Ms.
Umwiza Elizabeth and Ms. Sandra
Coote in a Review Meeting on CSO
Budget Matrix for 2016/17, organised by
CSBAG, February 2016.
READERS FEEDBACK CORNER - Increased Gov’t Admin Costs.
Uganda Debt Network @ugandadebtnet The
cost 4 public admn must be reduced& savings
invested in areas like infrastructure, agriculture to
enable the poor meet their basic needs.
Nick Wilson @WilsonNicholas @TBukumunhe
@ugandadebtnet That's the waste we have.
Why can't they buy these from wages like any
other employed person.
PLEASE JOIN UDN MEMBERSHIP
Uganda Debt Network @ugandadebtnet Each of
the MPs will be given money for a car and an
allowance wardrobe, among other benefits. Are all
these benefits necessary?
Sentamu Phillip @sentamups @ugandadebtnet
This is getting worse by the year. Who will help
us now?
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UDN PRESS CONFERENCE
Topic: Citizen Expectations of the 10th Parliament Date: 6th March 2016 Venue: UDN Secretariat, Ntinda
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