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Monday,July 13,2020 02:21 AM

Cabinet okays creation of NSSF competitor

By Moses Mulondo

Added 16th March 2017 04:23 PM

Government will contribute 10% and civil servants will contribute 5% to create 15% monthly savings

Cabinet okays creation of NSSF competitor

Government will contribute 10% and civil servants will contribute 5% to create 15% monthly savings

Minister of Public Service, Muruli Mukasa gestures while appearing before Parliament's committee on finance. Photo by Kennedy Oryema

The Public Service minister Muruli Mukasa has revealed that cabinet has approved his ministry's proposal to draft a Bill to provide for an autonomous and contributory pension scheme for civil servants.

It will be run like the National Social Security Fund (NSSF) which manages savings for employees in the private sector.

The minister said once the Public Service Pension Fund is created, civil servants will also earn interest on their benefits arising from investments as is the case for those under NSSF.

The minister said in the Pension Act Amendment Bill which they will soon present to Parliament, government will contribute 10% and civil servants will contribute 5% to create 15% monthly savings.

The minister opposed the Retirement Benefits Sector Liberalization Bill which has been drafted by the Finance Ministry, arguing it would risk putting funds of Ugandans into hands of individuals who can swindle the money.

Although the minister was supported by Kachumbala County MP Patrick Isiagi Opolot, other MPs who included Pecos Kutesa, Nandala Mafabi and the committee chairman Henry Musasizi said the Bill is necessary as a solution to inefficiencies in government and creation of competition which can enable employees to get better returns on their savings.

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