Makerere salaries not from pension fund
Recent press reports have suggested that Makerere University has borrowed money from the pension fund to pay workers’ salaries. This is not true.<br>The University was saving its staff pensions with the National Insurance Corporation (NIC) from July 1996 to June 2005.
Gilbert Kadilo
Recent press reports have suggested that Makerere University has borrowed money from the pension fund to pay workers’ salaries. This is not true.
The University was saving its staff pensions with the National Insurance Corporation (NIC) from July 1996 to June 2005.
The decision by the University Council to withdraw from NIC was based on a report of the Deposit Administration Plan (DAP) experts, which revealed that the Council was getting a raw deal from NIC.
Council then resolved that effective July 1, 2005, staff savings of 5% and the Council’s 20% contribution be put on a fixed deposit account in Standard Chartered Bank until a new scheme is put in place. Standard Chartered Bank would pay annual interest of 7.6% on the deposits.
The Council constituted a six-member Board of Trustees comprising representatives of the academic staff (MUASA), the administrative staff, and support staff. It also has an Actuarial Science professional and a Financial Manager from ICPAU. The University Secretary, the University Bursar, the deputy University Secretary (pensions) and the University Legal Officer are ex-officio members. The Board is registered with the Registrar of Companies.
A trustee deed was signed and rules governing the scheme were developed and signed between the Council and the Board of Trustees.
The Board of Trustees through the University Procurement Unit and in line with the Public Procurement and Deposit Act (PPDA) procedures, solicited competent firms to carry out an actuarial audit of the DAP pension funds in NIC and Standard Chartered Bank and a review of the in-house pension scheme and advise the Board and the University Council on which pension scheme was most suitable for the staff and the University.
Alexander Forbes Services Limited of Kenya emerged the best. The firm will issue a report after the study.
The University has not borrowed money from the pension scheme. However, the remittances of the University’s 20% contribution to the scheme are in arrears from the month of June 2007, due to budgetary deficit.
The writer is the Senior Public Relations Officer of Makerere University
Recent press reports have suggested that Makerere University has borrowed money from the pension fund to pay workers’ salaries. This is not true.
The University was saving its staff pensions with the National Insurance Corporation (NIC) from July 1996 to June 2005.
The decision by the University Council to withdraw from NIC was based on a report of the Deposit Administration Plan (DAP) experts, which revealed that the Council was getting a raw deal from NIC.
Council then resolved that effective July 1, 2005, staff savings of 5% and the Council’s 20% contribution be put on a fixed deposit account in Standard Chartered Bank until a new scheme is put in place. Standard Chartered Bank would pay annual interest of 7.6% on the deposits.
The Council constituted a six-member Board of Trustees comprising representatives of the academic staff (MUASA), the administrative staff, and support staff. It also has an Actuarial Science professional and a Financial Manager from ICPAU. The University Secretary, the University Bursar, the deputy University Secretary (pensions) and the University Legal Officer are ex-officio members. The Board is registered with the Registrar of Companies.
A trustee deed was signed and rules governing the scheme were developed and signed between the Council and the Board of Trustees.
The Board of Trustees through the University Procurement Unit and in line with the Public Procurement and Deposit Act (PPDA) procedures, solicited competent firms to carry out an actuarial audit of the DAP pension funds in NIC and Standard Chartered Bank and a review of the in-house pension scheme and advise the Board and the University Council on which pension scheme was most suitable for the staff and the University.
Alexander Forbes Services Limited of Kenya emerged the best. The firm will issue a report after the study.
The University has not borrowed money from the pension scheme. However, the remittances of the University’s 20% contribution to the scheme are in arrears from the month of June 2007, due to budgetary deficit.
The writer is the Senior Public Relations Officer of Makerere University