Uganda Moves To Operationalize Contributory Pension Scheme
The Ugandan government is making significant progress toward operationalizing the Public Service Pension Fund, marking a shift from the current non-contributory pension system to a contributory scheme. Under the new arrangement, public servants will contribute 5% of their gross salaries, while the government will provide a 10% top-up.
The goal is to establish a sustainable and reliable funding source for pension payouts and to tackle the long-standing challenge of pension arrears.
The Ministry of Public Service has kick-started plans to operationalize the Public Service Pension Fund, following the passage of the relevant bill by Parliament.
The new law introduces a contributory pension scheme under which public servants will contribute 5% of their gross salaries, while the government will add a 10% top-up based on each employee’s gross salary.
The Ministry of Public Service has already begun laying the groundwork for the fund, following the passing of the Public Service Pension Fund Bill by Parliament.
However, Permanent Secretary Catherine Bitarakwate Musingwiire acknowledged that the implementation process has not been without its challenges.
- To ensure the scheme’s success, the minister emphasized the need for greater investment and resource mobilization.
Public servants with at least 10 years of continuous service, or those meeting specific alternative criteria, will be eligible for the scheme.
