The bill aimed at liberalizing the Pension Sector in Uganda was tabled in the Parliament of Uganda in 2011 but still, since its tabling, it faced stiff resistance from the National Organization of Trade Unions (NOTU). “Firms collapsed with people’s pensions, Americans were not able to get back their money. was that the competition we are talking about? Look at Uganda Telecom, we are in trouble with it, look at Uganda Railways Co-operation, we are in trouble with it.” “And I want to warn Finance that they should stop playing with workers, all the money they are playing with comes from our sweat.”
The bill entitled the Retirement Benefits Sector Liberalization Bill 2011 would in effect end the monopoly of the National Social Security Fund. The bill also sought to amend the NSSF Act to allow workers Borrow from their savings as well as get their benefits early for specific cases. “You want mid-term access, you will get. Two, you want many benefits; employment, youth whatever, maternity leave, you are going to get from this amendment. You want to change your interest rate, you will be able to benefit. Not only that, those who want to borrow money from NSSF, you are going to borrow.” Said, Christopher Werikhe, Secretary General, NOTU. On Wednesday, NOTU revealed that they held a meeting with the Finance Minister Matia Kasaija and other Ministers on Monday and agreed to withdraw the controversial bill. “PS Gender and PS Finance have been directed to write a cabinet paper to be by Wednesday it must be in the cabinet to withdraw the bill in Parliament.”
They claimed the decision was arrived at following a directive by President Yoweri Museveni that Minister Matia Kasaija communicated during the Inter-Ministerial meeting at the Ministry of Finance. “Let me now reveal to you; the President call me personally and said Owere, am going to stop that nonsense and now he has stopped it. Take it from there, you can quote me a hundred times.” Said, Wilson Owere, Chairman General notu. When contacted, Minister of Finance Matia Kasaija distanced himself from the alleged directive. “...the President expressed his reservations about, has NSSF failed to do the job, that is what exactly I told them on Monday. He did not, he has never ordered me, I have never told him about the bill, and the time I talked to him we were supposed to be discussing the principles of the bill. We then have to go to cabinet first, we agreed that we shall secure a cabinet and go back to cabinet and discuss to cabinet. If the cabinet takes my own personal idea, of course, I would like to withdraw but I cannot say that now myself. I have to go to cabinet, the cabinet must agree first.” Said, Matia Kasaija.
More than a year ago, the government set up the Uganda Retirement Benefits Regulatory Authority to regulate the Pension Sector. “This nonsense called Liberalization has actually not worked anywhere even in developed countries like America, the thing has collapsed.” “And these moneys which are in NSSF, these unionized workers don’t even contribute 10%, they make a lot of noise but why don’t you listen to the voice of the other 90% who contribute like the institute of bankers, the Telecom companies, do they want to reform or not?” Said, Andrew Kasirye, Chairman URBRA.
Kasirye told NTV that Authority’s surprise Move to liberalize the Sector because of the economic benefits the country was likely to get. “Why we support as a regulator, the opening it up; it will lead to greater efficiencies in those who are participating today. To unlock the economy of Uganda you need to liberalize the Pension Sector, then, there are many uncertainties but you see you will never develop unless you take a reasonable risk, you must have a certain degree of risk you take. Because we all don’t know but we have seen these liberalized pension environments elsewhere.” Said, Andrew Kasirye. The workers have also accused the Authority of using the workers’ money to run the agency.
