Pension Debt Hits Sh265b
Jul 25, 2003
PENSION arrears have hit sh265b and government has not made a budgetary provision to clear or reduce it this financial year,
PENSION arrears have hit sh265b and government has not made a budgetary provision to clear or reduce it this financial year, reports Henry Mukasa
The state minister for public service (pension), Begnina Mukiibi, told the parliamentary committee on public service and local government on Thursday that she was disappointed that the Ministry of Finance (MOF) had made no provision to pay the arrears.
“We are disturbed as ministers managing this sector. We haven’t been able to get something despite our advocacy and pleas. We only realised this at the reading of the budget,†Mukiibi said.
The commissioner in charge of compensation, Stephen Kiwanuka Kunsa, said the arrears were not a result of non-payment but rather a change in government policy.
He said the arrears accrued when the pension law was revised in 1995 after pensioners complained that the currency reform of 1988 affected them negatively. Kunsa said although the law was passed in 1995, it was backdated to 1988.
He said the arrears of traditional recipients and teachers now amounted to sh83b, for sh103b defence, while pensioners under local government are demanding sh17.1bn.
Arrears for the former East African Community workers are sh7.9b while gratuity arrears are sh11b.
Kunsa said by the time the arrears for the EAC pensioners were calculated, they came to sh45.5b and the finance ministry released the money promptly.
Ends
The state minister for public service (pension), Begnina Mukiibi, told the parliamentary committee on public service and local government on Thursday that she was disappointed that the Ministry of Finance (MOF) had made no provision to pay the arrears.
“We are disturbed as ministers managing this sector. We haven’t been able to get something despite our advocacy and pleas. We only realised this at the reading of the budget,†Mukiibi said.
The commissioner in charge of compensation, Stephen Kiwanuka Kunsa, said the arrears were not a result of non-payment but rather a change in government policy.
He said the arrears accrued when the pension law was revised in 1995 after pensioners complained that the currency reform of 1988 affected them negatively. Kunsa said although the law was passed in 1995, it was backdated to 1988.
He said the arrears of traditional recipients and teachers now amounted to sh83b, for sh103b defence, while pensioners under local government are demanding sh17.1bn.
Arrears for the former East African Community workers are sh7.9b while gratuity arrears are sh11b.
Kunsa said by the time the arrears for the EAC pensioners were calculated, they came to sh45.5b and the finance ministry released the money promptly.
Ends