STG For Public Pension Reform

Jan 20, 2004

THE public service pensions scheme will be turned into a contributory scheme, its head John Mitala said yesterday.

By Stephen Ilungole
THE public service pensions scheme will be turned into a contributory scheme, its head John Mitala said yesterday.
Mitala was responding to a query whether the public service was ready for the task of becoming the core of the second national social security provider as recommended in the Social Security Stakeholders Group (STG) report. The report was yesterday handed over to labour minister, Zoe Bakoko Bakoru at Workers House in Kampala.
Bakoko appointed the STG last year to make recommendations on how to reform the social protection sector to make it universal, vibrant, competitive, mobilise domestic resources and contribute more to national development through socio-economic transformation.
“We carried our own pensions reforms study and it was agreed that we go for a contributory system. We have been waiting for the STG to come up with a comprehensive cover for the civil servants and other workers,” Mitala said.
Public service owes retired servants sh265b in arrears. STG coordinator, Aloysius Ssemmanda said the report provided a new framework for social protection.
STG chairman Onegi-Obel said the group identified a new engine for domestic capital formation. Bakoko said the report would help in the introduction of a mandatory and participatory social security system.
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