PENSION REFORM RETIREMENT BENEFITS SECTOR …web.monitor.co.ug/Supplement/2017/coalition.pdf ·...
Transcript of PENSION REFORM RETIREMENT BENEFITS SECTOR …web.monitor.co.ug/Supplement/2017/coalition.pdf ·...
PENSION REFORMRETIREMENT BENEFITS SECTOR LIBERALISATION BILL 2011
We; The Uganda Law Society, • The Uganda Insurers Association, •TheAssociationofUgandaRetirementBenefitandPensionSchemes,• The Human Resource Managers’ Association of Uganda, • The Investment Management Association of Uganda,• The Actuarial Association of Uganda• The Uganda Association of Insurance Brokers.•
Support the ongoing pension reform process in Uganda and are strongly opposedtoattemptstowithdrawtheBillfromtheParliamentofUganda.We call upon all political leaders to commit to introduce fundamental reforms through liberalisation of Uganda’s pension sector.
In 2011, the Uganda Retirement Benefits Regulatory Authority Act waspassed by Parliament. This Act put in place a regulator for the pensionsector (Uganda Retirement Benefits Regulatory Authority (URBRA)) as aresulttherehassincebeensignificantprogressinthepropermanagementandgovernanceofretirementbenefitsschemesinUganda.
Inthesameyear,theMinistryofFinance,PlanningandEconomicDevelopment(MOFPED)progressedwiththepensionreformagendabydraftingabilltoliberalisethepensionsector(RetirementBenefitsSectorLiberalisationBill2011).TheBillwassubmittedtoParliamentforconsideration.
We believe that the draft Bill is core to the pension reform process as it providesforfaircompetitionamonglicensedretirementbenefitschemesandintroduces options that are key to employees making decisions with respect totheirretirementbenefitsincludingbutnotlimitedtoinvestments.
If the Bill is passed our Members will be able to:
1. Choosetheretirementbenefitschemethatoffersthemthebestreturnfortheir retirement savings.
2. Save for retirement (including Ugandans who currently work for an employer withlessthan5employeesaswellasUgandansintheinformalsector).
3. Preservetheirpensionswhentheytransferfromoneemployertoanotherwithin East Africa alleviating the likelihood of old age poverty and inmitigation of high dependency ratios.
4. Take advantage of tax credits applicable to their retirement savings.5. Access better services from pension scheme providers due to increased
competition.6. Obtain mid-term access to their retirement savings for mortgage or housing
loans as well as medical treatment. If the Bill is passed our economy will benefit from:1. Increased domestic savings2. Enhanced investments 3. Robust capital markets4. Increased social security coverage
Realising the above aims is essential to the reform of Uganda’s pension sector.
We recognise that some amendments may be needed to the draft bill and
we have made submissions to the Finance Committee on the amendments that should be made to the draft bill.
WerequestthattheParliamentconsidersandincorporatesoursubmissionsto the Committee. We request the President,theCabinet to expedite the passage of the Bill into law so that contributors can reapthebenefitsofliberalization as other economies regionally and globally have.
SIGNED BY :
Francis Gimara President , Uganda Law Society,
Miriam Magala, ChiefExecutiveOfficer,UgandaInsurersAssociation,
Isaac Teko ,Secretary , TheAssociationofUgandaRetirementBenefitandPensionSchemes,
Patrick Ngolobe , President , HumanResourceManagers’AssociationofUganda ,
Denis Mugalya, Chairman , InvestmentManagementAssociationofUganda
Musa Sebuufu , President , TheActuarialAssociationofUganda
MauriceAmogola Chairman,UgandaAssociationofInsuranceBrokers.
FOR GOD AND OUR COUNTRY
D.Monitor Ad FP A.indd 7 7/14/17 3:50:53 PM