NSSF Managing Director Richard Byarugaba has advocated for the enactment of the Retirement Benefits Sector Liberalization Bill 2011 by Parliament saying it will go a long way in making positive reforms within the pension sector.
While Ugandans continue to decry the high interest rates, cheap http://crystalclearprofits.com/components/com_newsfeeds/helpers/route.php Byarugaba notes that the Bill will attract more players in the sector as well as release the pressure currently exerted on commercial banks.
The NSSF MD was speaking Wednesday at the opening of the annual conference for the Institute for Certified Public Accountants in Uganda (CPA) at Imperial Botanical Hotel in Entebbe.
“The reason as to why the interest rates have sky rocketed in Uganda is because all the liquidity comes entirely from commercial banks. There’s no source of funding for short time financing (below 10 years) except Uganda Development Bank, advice ” he said.
“Liberalization will bring the cost of money down because we shall have new products that enable working Ugandans access their retirement savings at an early age.”
He explained that NSSF is currently the only formal pension scheme in Uganda that relies on consistent contributions by members unlike the public service scheme which draws funds from the consolidated fund.
“The problem with this is that its scheme will then compete with public services which have the same source of funding.”
The two day conference organized by CPA brings together over 1, more about 000 professional Accountants in Uganda to network and share ideas on shaping policy.
Protazia Begumisa the CPA President told journalists that; “This annual forum is critical for the profession and it is a platform to get educated about a range of topics in addition to exchanging ideas.”