Gov’t Cleans Up Pension Sector


buy more about sans-serif; color: #333333;”>This was revealed by Hon. Aston Kajara, the minister holding a portfolio of minister of Finance, Planning and Economic Development on April 15, 2014 at Uganda Media Centre.

According to the Minister, the objectives of these reforms include: “restoring trust and confidence in the retirement benefit sector to encourage savings by undertaking reforms. This is important for the promise to be realised and to change the negative perceptions”.

“They are also meant to ensure protection of workers’ savings and better returns to the savings in the form of benefit,” he said.

He added: “The reforms are also aimed at introducing competitive pressure in order to improve governance in the entire sector and bring about innovation in collection methods, products and new investment vehicles.”

Minister Kajara further observed that there is a need to increase coverage to all those in the formal sector employment by removing the current threshold of five or more employees for companies contributing to the NSSF – as a mandatory requirement.

“To those who are self- employed–on a voluntary basis and to the informal sector – on a voluntary basis.”

He said there is also a need to make the system fully funded for fiscal sustainability particularly the public sector pension scheme.

“Providing choice to savers, to be able to put their savings in schemes they have trust.”

“Over the medium to long term and as the economy grows towards a middle income status ensuring that those who save for their retirement have adequate income,” he continued.

The reforms also intend to restore a savings culture, and good investment returns to savers will boost domestic savings to GDP and create funds which can be investment long term for economic growth.

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