Civil Servants To Pay PensionP

CIVIL servants will soon start contributing to their pensions, writes Richard Komakech.
In a proposed social services reform programme, the Social Security Transition Group (STG) states that the current pension arrangement is a financial burden to the Government.

Under the funded pension structure, the Government owes former civil servants up-to sh260b in pension arrears.

The Minister of Labour last year instituted the STG to reform the social security sector.
The sector is chaired by Presidential Adviser Onegi-Obel and co-ordinated by the Federation of Uganda Employees chairman, Aloysius Ssemanda.

The STG recommended an overhaul of all government funded pension schemes to be replaced by a defined contributory social security arrangement.

This will help to reduce the bureaucracy and allow pensioners to have more say over their money.

New entrants into the civil service and all existing officials under the public service may start contributing to the new scheme in the next financial year if the President endorses the new reforms.

The STG also proposes that the Government contributes a top-up amount on the contributory scheme as its appreciation for their service.

The STG will present its report to the President next month.

Among the proposals collected from several stakeholders is the recommendation that the public service ministry compensation department be scrapped to create a commission which will oversee the whole social services sector