Workers, MPs demand review of pension Bill

Workers, employers and legislators have condemned the Retirement Benefits Authority Bill, 2010, forcing the government into withdrawing it to enable further consultations.

Leaders of workers’ unions in the country yesterday said the Bill does not cater for interests of workers, nor does it spell out duties of the different stakeholders in the social security sector.

The workers’ leaders and employers in separate interviews emphasised that there was need for workers, the intended beneficiaries of the new changes and the function of the Bill to be reflected in the title.

The Bill which seeks to break NSSF’s monopoly and create an authority as a social security sector regulator has been criticised by the different parties. The workers want the Bill to clearly state the responsibilities of the players rather than leave them to the regulator to determine.

“In this [proposed[ situation, workers will start to move from one scheme to another and backwards depending on satisfaction with the products offered by the different and competing providers. The workers’ benefits must therefore be calculatable with a short formula and at short notice and portable at all times,” the NOTU experts proposed.

“Roles of the stakeholders must be clearly spelt out to avoid confusion,” Mr Usher Owere, the Secretary General of NOTU said. The remarks come hardly a day after Prime Minister Apollo Nsibambi requested to defer the debate on the Bill following MPs’s rejection.

“The spirit in which the Bill is being brought is not better for workers. We are discontented because there are so many issues that have to be addressed before it is tabled,” said Mr Owere.

He added: “The word Authority in the title is not clear and appropriate as its wide purpose is. The name of the Act and what it does must be reflected in the title. The title should be ‘Pension Scheme Regulator Act’ to reflect the interests of the stakeholders who are mainly workers.”

He expressed dismay that almost a very similar document that was rejected in 2006 was the same being perpetuated by government. He said: “We want the regulator but we also want a law that addresses present concerns while looking at the future as well.”

The Chairman General of Central Organisation of Free Trade Unions (Coftu), Mr Christopher Kahirita said; “We have forwarded our discontent to the Speaker of Parliament seeking proper consultation in vain. In my opinion, the Bill is being rushed. We want it stayed.

Unlike other stakeholders, NOTU carried out an expert study on the Bill with support from the International Labour Organisation (ILO) and the experts recommended that; “… the Bill should be withdrawn for further consultations and improvements” because it suffers “several defects.”

The Chairman of the Federation of Uganda Employers (FUE), Mr Martin Kasekende said, “We will be happy if it is stayed to allow our views to be incorporated. Ministry of Finance should stand down on this”.

On Tuesday, the MPs attacked the Bill, saying passing it before the social security sector is liberalized would pose a risk. They said the monopoly of the NSSF should first be broken before the law that creates an Authority as a regulator is enacted.

The Uganda Retirement Benefits Regulatory Authority, 2010 Bill seeks to end NSSF’s monopoly and open up the sector to competition.

Additional reporting by Yasiin Mugerwa & Mercy Nalugo