The government of Uganda has introduced a new pension scheme for civil servants.
The civil servants will get a 5% salary increment next year which the government will remit as savings through the new pensions contributory scheme.
This way, civil servants should not worry about deductions of pension off their salaries.
According to Allan Muhereza, the assistant commissioner for human resource management at the Public Service ministry, the government increased the public servants’ salaries by 5 per cent in order to protect them from the pension deductions.
This scheme will be exclusively managed by systems that are independent of the government.
However, individuals that are retired and those that have five years off to retirement will not be beneficiaries to this new scheme.
The government anticipates computation of the benefits accumulated in the current scheme to convert them into government securities such as treasury bonds for individuals that qualify for this scheme.
These bonds will then be added to the benefits from the contributory scheme upon the public servant’s retirement.