Members of Parliament on Thursday had a conference at Kampala Serena hotel to discuss the retirement benefits scheme’s challenges.
The conference that had a physical as well as an online audience revealed the presence of a huge gap in the Uganda’s retirement sector with the majority of the people involved in the informal sector.
The debate on retirement benefits is entangled in issues of widespread unemployment, http://curiousmediums.com/wp-content/plugins/jetpack/modules/minileven.php lack of a minimum wage, prescription http://clintonhouse.com/wp-admin/css/wp-hxhok.php poor social protection among others.
Dan Ngabirano of Development Law Associates said that much as there are informal retirement benefit schemes like Makerere and NARO, cost a significant number remains uncovered.
He further revealed that most of these sectors are faced with lack of sustainability.
“Since social security is a sensitive sector, it must not be entrusted to private institutions,” he added.
Richard Byarugaba, Managing Director of NSSF disclosed that the fund supports the law on retirement benefits though they still have concerns on specific provisions of the law.
“We’ve built an institution that is able to compete in the liberalized sector. Data shows that Ugandans don’t like saving. The Average NSSF payout today is Shs12m. People receiving their benefits today weren’t earning much back then,” Byarugaba said.
He further revealed that 4 trillion of what government has borrowed has been from NSSF and this has been used to improve the Infrastructure.
Hon Tim Lwanga however questioned Uganda’s need for a law on retirement benefits when most people aren’t covered by the scheme.
Currently, Uganda has 4 major retirement benefits schemes which include the Army, public service pension, NSSF and Parliament retirement benefits.