The Government has approved the the Ministry of Public Service proposal to draft a bill for creation of an autonomous and contributory pension scheme for civil servants.
This was revealed by the Public Service minister Muruli Mukasa why while appearing before Parliament’s committee on finance
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.