Parliament on Wednesday passed the Parliamentary Pensions (Amendment) Bill, 2022, allowing legislators and staff mid-term access to their savings.
The mid-term access clause is new to the Private Member’s Bill tabled by Workers’ MP, Arinaitwe Rwakajara. Once assented to by President Yoweri Kaguta Museveni, the pension scheme members who have saved for 10 years and reached the age of 45 years will be allowed 20 percent mid-term access to their savings.
The approval comes just after months since Parliament approved the same mid-term access under the National Social Security Fund (Amendment) Bill, 2021 in November 2021. NSSF is a provident Fund covering all employees in the private sector including Non-Government Organizations (NGOs) that are not covered by the government’s pension scheme.
The vote on the MPs and Parliamentary Staff mid-access to their savings was taken in a Sitting chaired by Speaker, Anita Among after a section of legislators argued that the decision was to enable them to utilize part of their pension before retirement.
This was after Robinah Rwakoojo, the Legal and Parliamentary Affairs Committee Chairperson presented a report on the Bill and proposed a new clause for mid-term access, which the mover of the Bill agreed to.
Sarah Opendi, the Tororo Woman MP said that there is no need for MPs to seek loans with high-interest rates yet they can access part of their pension.
Aisha Kabanda, the Butambala Woman MP also said that it was important that they get and utilize their funds while still energetic and able to work.
However, her colleague from Butambala County MP, Muhammad Muwanga Kivumbi said that mid-term access defeats the standard of the social support system. He argued that the NSSF access had been approved because workers in the nation were in a crisis due to the COVID-19 pandemic.
Prossy Akampulira, the Rubanda Woman MP also opposed the mid-term access saying that the scheme was small and that mid-term access will affect the investment returns in a long run.
Nathan Nandala Mafabi, the Budadiri West MP also argued that legislators will regret the move to accept mid-term access.
But Henry Musasizi, the Minister of State for Finance, said that the mid-term access proposal was premised on a good principle and that it caused no risk to the scheme.
Besides mid-term access, MPs also approved a clause increasing the rate of the contribution made by the government to 10 percent and members’ contributions from 15 to 20 percent.
The approved Bill also allows members to make voluntary monthly contributions to the Parliamentary Post-Retirement Medical Fund not exceeding 2 percent of total contributions to the scheme.
MP Rwakoojo said that post-retirement medical cover is one of the critical requirements of a retiree since after retirement when the medical cover granted by the Commission is terminated, it leaves retirees destitute and unable to obtain medical treatment due to a reduction in income.
Another clause was also approved requiring the Parliamentary Commission to provide retirement benefits to previous Speakers and Deputy Speakers of Parliament and their dependents.
It was observed that Speakers and Deputy Speakers do not contribute to the pension scheme and that most former Speakers and their dependents were living in deplorable conditions.
“We have former Speakers and Deputy Speakers who are moving as destitute, whose children cannot afford anything, yet they are very few people, dignified people who have contributed to building this Parliament,” said Geoffrey Ekanya the Tororo North County.
The mover of the Bill, MP Rwakajara also supported the move.
“From the experience we had recently when we lost our own Speaker Jacob Oulanyah, we found out that dependents have no benefits at all, this does not affect the contribution of members, Speakers are catered for by the Parliamentary Commission, it is a matter of putting it into the law and Parliamentary Commission budgets for it,” said Rwakajara.
According to the Bill, a dependent can be a spouse, parent, and biological child and the provision is applicable to Speakers and Deputy Speakers of Parliament who have served since 1980.
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