Pension regulator warns errant retirement schemes
Workers House building in Kampala that houses National Social Security Fund. UBRA is conducting an audit of NSSF, the only country’s mandatory provident scheme. FILE PHOTO
What you need to know:
Unregistered. Many private retirement benefit schemes are operating as provident funds and pension schemes but are not registered
Kampala. The Uganda Retirement Benefits Regulatory Authority (UBRA) has said it is considering ‘criminal action’ against any retirement benefit scheme that will be found operating outside the law once the registration period lapses.
The new UBRA chief executive officer, Mr David Nyakundi Bonyi, told journalists during a workshop on pensions recently, that there are a number of private retirement benefit schemes operated as provident funds and pension schemes that are not in books.
“These are many but we don’t know who they are, but have requested them to apply for licences which will help us to streamline our operations,” Mr Bonyi said. “Failure to apply for a licence leads to criminal prosecution but that is not the direction we want to pursue.”
He said UBRA has agreed with Uganda Bureau of Statistics to conduct a baseline survey on the number of retirement schemes in the country, which will help to establish those registered and those not yet.
The purpose of registration, he noted, is to audit their operations. Part of his next three-year strategy is to “procure and install an integrated risk-based supervision” structure to monitor operations of the retirement benefits schemes, notably those licensed.
Mr Bonyi said they are conducting an audit inspection of the National Social Security Fund (NSSF), the only country’s mandatory provident scheme.
“... We want to establish if there any risks regarding governance or management that pose bigger risks to the Fund [NSSF],” Mr Bonyi noted.
Mr Bonyi took over management of UBRA from the interim CEO Moses Bekabye.
The debate on pension liberalisation awaits the passing of the Pension Liberalisation Bill [2012]that aims at opening up the pensions sector to other players and also breaking up the NSSF monopoly by repealing the NSSF Act.
WORKERS SAVING
Labourforce. Uganda has a labour force of at least 13.5 million Ugandans. However, only 450,000 save with NSSF and another 30,000 with other schemes in their workplaces.
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