• No_Ads
Business
Pension firms asked to create tangible benefitsPublish Date: Dec 29, 2013
Pension firms asked to create tangible benefits
  • mail
  • img
NSSF building
newvision

By Vision Reporter

As the complete liberalisation of the pensions sector approaches, the Uganda Retirement Benefits Regulatory Authority (URBRA) has urged licensed firms to create products with tangible benefi ts to lure Ugandans to the sector.


Rose Musonye Kwena, the Retirement Benefits Authority Kenya publicist noted during a recent URBRA media training that the players should be able to offer products such as mortgages.

“There must be tangible benefi ts for savers to enjoy. In the past it used to be just tax exemptions but that cannot be touched,” she explained.

“With benefits like mortgages, even the youth will consider pension schemes to be trendy,” she added.

Currently, the government National Social Security Fund (NSSF) operates as the mandatory pension scheme with assets worth over sh3trillion. The fund has half a million contributing members close to 7% of the working population.

Occupational schemes hold close to sh430b in savings which is mostly managed by international fund managers such as the South African based Stanlib and American based Pine bridge. Insurance companies run parallel umbrella pension schemes.

Moses Bekabye, the acting URBRA boss noted that some of the existing occupational schemes do not follow proper corporate governance rules.

There are over 30,000 private sector fi rms that qualify to remit pension contributions to the NSSF, but only 30% or 9,000 firms currently do, this indicates a compliance problem in the sector. He urged firms to form umbrella schemes where possible to enjoy economies of scale through lower costs of operation.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Africa’s economy resilient - World Bank
Economic activity in Sub- Saharan Africa remained robust in 2013, highlighting a significant increase in capital inflows and net direct foreign investment (FDI) inflows...
Uganda woos American, Canadian tourists
Tourism promoters are on a charm offensive wooing travel agents and tourists from North America to enable them get the actual on-ground reality about Uganda as a peaceful and beautiful travel destination....
ISO to recall certificates over decline in standards
The international organisation for standardisation (ISO) is to recall certificates of organisations and companies in Uganda that fail to sustain international standards....
What the 2014/2015 budget offers to farmers
The Government has demarcated the country into various agricultural zones to promote particular agricultural products for commercial purposes to boost household incomes....
The raging war for EAC air space
A five minutes visit of Entebbe International Airport is a revelation of a raging war for the airspace between Kenya Airways (KQ ), Ethiopian Airlines, Air Uganda and the Gulf giants comprising Emirates, Qatar, Air Arabia and Fly Dubai, which enjoy unlimited market access from African governments....
Slow infrastructure development frustrates Namanve investors
Investors are agitated by the lack of coordination between government agencies and the slow progress of fixing the wanting infrastructure in gazetted industrial parks....
WIll the national ID registration process be completed in the scheduled 4 months timeframe?
Yes
No
Can't Say
follow us
subscribe to our news letter