Finance ministry insists on liberalizing pension sector

The finance ministry has insisted that the Retirement Benefits Bill which seeks to liberalize the pension sector is necessary to allow new players in the sector

The State Minister for Finance David Bahati told the parliament finance committee that the Bill will help government to bring the 11million Uganda employees who are not under anypension scheme to join pension  schemes.

Clause 12 of the Bill also provides for mandatory contributions and benefits for all employees and employers in both formal and informal employment to licensed retirement benefits schemes.

Last week the Parliament Finance Committee was left perplexed when the Minister for Public Service, Muruli Mukasa, passionately opposed the Bill and called for its withdrawal warning that if passed it would risk savings of Ugandans into the hands of private investors who can easily run away with their money.

Find views from various stakeholders on the Bill story in Wednesday's New Vision or subscribe to our E-Paper