Pension reforms overdue

Dec 18, 2005

GOVERNEMENT owes over $170m (sh309b) in pensions to retired civil servants, a key indicator that reforms in the scheme are long overdue, a senior pension commissioner in the ministry of public service, said recently.

By Vision Reporter

GOVERNEMENT owes over $170m (sh309b) in pensions to retired civil servants, a key indicator that reforms in the scheme are long overdue, a senior pension commissioner in the ministry of public service, said recently.

Stephen Kiwanuka-Kunsa, said reforms in the public service pension scheme would move ahead of the proposed changes in the entire pension sector.

“There is a case to move on these pension scheme reforms before pension sector reforms, and we already have a draft bill. We have set July 1, 2007 as the implementation date,” he said.

Kiwanuka-Kunsa was addressing a seminar on “Pension sector reform: Its impact on capital markets development” organised by Capital Markets Authority in Kampala.

“The existing liabilities by the Government are a key driver of the reforms. The new fund should not be saddled with liabilities but they should remain a liability of the Government,” he said.

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