MPs to get sh3b pension

Jan 04, 2006

Members of Parliament (MPs) are to get a pension amounting to over sh2.65b if the Parliamentary Pensions Bill, 2006 is passed.

By Joyce Namutebi and James Odong

Members of Parliament (MPs) are to get a pension amounting to over sh2.65b if the Parliamentary Pensions Bill, 2006 is passed.

Pensions state minister Benigna Mukiibi tabled the Bill in Parliament yesterday, with a certificate of financial implications as required by law.

The object of the Bill is to make provision for the establishment of a Contributory Pensions Scheme for MPs, which envisages the creation of a fund into which MPs will contribute 5% of their monthly basic salary.

A copy of the certificate, which The New Vision saw stated that basing on the government obligation to contribute 10% of the monthly salary per MP, arrears for each MP (of the Seventh Parliament) per year amount to over sh1.753m.

The certificate signed by the investment state minister, also holding the portfolio of Minister of Finance, Prof. Semakula Kiwanuka, further stated that arrears for five years for the 303 MPs amount to over sh2.656b.

“For financial year (FY) 2006/07, a total of sh3.239b will be required to cover the arrears for the 7th Parliament as well as the annual contribution for FY2006/07,” Kiwanuka said.

He said the estimated contribution for the 8th Parliament for 2006/07 for 333 members was over sh583.8m.

He said payment of gratuity would cease with the commencement of the Act in accordance with international practice.

“All members of the 7th Parliament shall, on date of commencement of this Act, be deemed to have joined the scheme,” the Bill states. It also says a member who is also the Vice-President shall not be part of the scheme.

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