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Makerere staff own fourth largest pension scheme

By Taddeo Bwambale, Abbey Ramadhan

Added 17th October 2018 08:03 AM

The university’s pension scheme started operations in 2010 after the institution severed ties with the National Insurance Corporation (NIC).

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The university’s pension scheme started operations in 2010 after the institution severed ties with the National Insurance Corporation (NIC).

Makerere University Retirement Benefits Scheme (MURBS) is now the fourth largest pension scheme by asset value having grown from sh49b in 2011 to sh142b by the end of the last financial year.

The university’s pension scheme started operations in 2010 after the institution severed ties with the National Insurance Corporation (NIC) which handled its workers’ savings for nearly a decade.

Between 1996 and 2005, NIC operated a Deposit Administration Plan (DAP) for Makerere University staff. However, the university withdrew from the scheme and demanded over sh27b from NIC.

Government undertook to guarantee payment of the sum in instalments to the university, which in turn agreed to remit it to the MURBS account.

Presenting a report on performance of the fund at Makerere University Tuesday, MURBS chairperson, Wilbur Grace Naigambi said the growth of the scheme was a result of both policy and market conditions.

Under the retirement scheme, 10% of contributions comes from Makerere University while 5% comes from employees. Some employees are saving above the 5% and sh149m was raised from them last year.

At retirement, university employees are able to access their benefits within one week of submitting their applications, guaranteeing that they transition easily into retirement.

MURBS is ranked fourth largest in terms of assets in Uganda, only behind the National Social Security Fund, Bank of Uganda Staff Retirement Benefits Scheme and the Parliamentary Pension Scheme

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