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Pension arrears hit a record sh1.2 trillion

By Henry Sekanjako, Mary Karugaba, Moses Walubiri

Added 28th May 2017 08:05 PM

We have seen people who have worked for this country and died without getting their pension money, this money should be availed, to avoid such scenarios

Parliament 703x422

We have seen people who have worked for this country and died without getting their pension money, this money should be availed, to avoid such scenarios

The government is lacking Sh1.2 trillion to pay off its ex-workers, who have since retired from Public service over the years.

Out of the Sh1.2 trillion that is required to  clear the arrears, which have been accumulating over the years, only Sh121b, has been provided to settle the arrears, during the  coming 2017/18 financial year.

“It was learnt that after the recent verification exercise, the arrears of pension, stood at Sh1.2trillion and according to the final budget call circular issued by the ministry of finance for the financial year 2017/18, only sh121b, has been provided by finance to clear some of the arrears, leaving a huge amount of money as outstanding payment,” Raphael Magyezi (Igara West) said.

Magyezi who is the chairperson Parliament’s committee on public service and local government, made the remarks on Thursday, as he presented the committee’s report on ministerial policy statement, for the ministry of public service, to parliament, for consideration.

Recently, the ministry of public service embarked on a validation exercise for all retired civil servants, who include doctors, teachers, and local government ex-workers, among others, where over 60,000 ex-civil servants were registered.

In its report, the committee recommended that the government provides all the required money, to clear the arrears.

Debating the report, the MPs expressed concern that the delay to clear the arrears, may deny the senior citizens, opportunity, to enjoy their retirement benefits.

“We have seen people who have worked for this country and died without getting their pension money, this money should be availed, to avoid such scenarios,” said Hamson Obua, the AJuri county MP.

Bugangaizi county MP Onsemus Twinamatsiko added that; “Sh1.2 arrears for pension?  Why these people, who have worked for this government for a long time, they need their money.” 

However in response, Mukasa Muruli, the minister for public service, told the House, chaired by deputy speaker Jacob Oulanyah, that the ministry was working closely with the ministry of finance, to ensure that the arrears are cleared.

“There is still a funding gap, but we are working closely with the ministry of finance, to make sure that everybody gets their pension,” Muruli assured.

The MPs demanded that the ministry of finance submits to parliament, a breakdown, showing the schedule on how the government is going to clear all pension arrears beginning with the financial year 2017/18

 

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