pension reform retirement benefits sector …web.monitor.co.ug/supplement/2017/coalition.pdf ·...

PENSION REFORM RETIREMENT BENEFITS SECTOR LIBERALISATION BILL 2011 We; The Uganda Law Society, • The Uganda Insurers Association, • The Association of Uganda Retirement Benefit and Pension Schemes, • 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 opposed to attempts to withdraw the Bill from the Parliament of Uganda. 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 was passed by Parliament. This Act put in place a regulator for the pension sector (Uganda Retirement Benefits Regulatory Authority (URBRA)) as a result there has since been significant progress in the proper management and governance of retirement benefits schemes in Uganda. In the same year, the Ministry of Finance, Planning and Economic Development (MOFPED) progressed with the pension reform agenda by drafting a bill to liberalise the pension sector (Retirement Benefits Sector Liberalisation Bill 2011). The Bill was submitted to Parliament for consideration. We believe that the draft Bill is core to the pension reform process as it provides for fair competition among licensed retirement benefit schemes and introduces options that are key to employees making decisions with respect to their retirement benefits including but not limited to investments. If the Bill is passed our Members will be able to: 1. Choose the retirement benefit scheme that offers them the best return for their retirement savings. 2. Save for retirement (including Ugandans who currently work for an employer with less than 5 employees as well as Ugandans in the informal sector). 3. Preserve their pensions when they transfer from one employer to another within East Africa alleviating the likelihood of old age poverty and in mitigation 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 savings 2. Enhanced investments 3. Robust capital markets 4. 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. We request that the Parliament considers and incorporates our submissions to the Committee. We request the President, the Cabinet to expedite the passage of the Bill into law so that contributors can reap the benefits of liberalization as other economies regionally and globally have. SIGNED BY : Francis Gimara President , Uganda Law Society, Miriam Magala, Chief Executive Officer, Uganda Insurers Association, Isaac Teko ,Secretary , The Association of Uganda Retirement Benefit and Pension Schemes, Patrick Ngolobe , President , Human Resource Managers’ Association of Uganda , Denis Mugalya, Chairman , Investment Management Association of Uganda Musa Sebuufu , President , The Actuarial Association of Uganda Maurice Amogola Chairman, Uganda Association of Insurance Brokers. FOR GOD AND OUR COUNTRY D.Monitor Ad FP A.indd 7 7/14/17 3:50:53 PM

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Page 1: PENSION REFORM RETIREMENT BENEFITS SECTOR …web.monitor.co.ug/Supplement/2017/coalition.pdf · Support the ongoing pension reform process in Uganda and are strongly opposed to attempts

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

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