ULS backs liberalization of the pension sector

The President of the Uganda Law Society, Francis Gimara appearing before the Parliament Committee. Photo/File

Uganda Law Society wants government to  draft a comprehensive trusteeship law before passing the Retirement Pension Sector Liberalization Bill.

The Uganda Law Society president made the remarks on Tuesday while appearing before a House committee on finance to present the professional association's views on the Bill being scrutinized.

"This Bill proposes that new saving schemes will be managed by trustees. These trustees, just like the National Social Security Fund board, necessitate a strong law to regulate and hold trustees more accountable so that they manage people's savings carefully," Francis Gimara explained.

He told MPs that Uganda Law Society is ready to present a private member's Bill if government delays the Bill.

Uganda Law Society supports the idea of liberalization of the pension sector but to a limited extent where 10% will be reserved for NSSF and only 5% of a member's savings be open to competition from private schemes.