Workers' unions disagree over new Pension Bill

The Central Organisation of Free Trade Unions Chairman Christopher Kahirita (left) talks to Worker's MP Sam Lyomoki , while appearing before the Parliament Committee on Finance, at Parliament on March 23, 2017. Photo by Kennedy Oryema

Workers' leaders under Central Organization of Free Trade Unions (COFTU) have supported a proposal in the Retirement Benefits Sector Liberalization Bill which creates mid-term acquisition of some of savings for members who are 45 years and above.

Appearing before the Parliament finance committee on Thursday led by workers' MP Sam Lyomoki, the group argued that the provision will allow members to use part of their savings for viable investments before they reach their retirement age.

However, the National Organization of Trade Union (NOTU) leaders opposed the clause arguing that it undermines the cardinal objective of saving money for old age.

The two groups that represent workers' interests however agreed on rejecting a clause in the Bill which seeks to stop the arrangement of members getting all their savings in lumpsum upon retirement and introduce monthly payments which are technically called annuity.

"The proposal for annuity is not good because it would subject pensioners to continuous begging. We want members to have the freedom on whether to get their money in lumpsum or as annuity," Lyomoki argued.