Uganda Retirement Benefits Regulatory Authority (URBRA)
Tel: +256 417 302 500
Email: contact@urbra.go.ug | Web: www.urbra.go.ug
Location: 3rd-6th Floor Plot 1 Clement Hill Rd, Kampala, Uganda Postal Address: P.O.Box 7561, Kampala, Uganda  Mr David Nyakundi Bonyi, chief executive officer UBRA: 89 per cent of Uganda’s labour force get no pension Uganda continues to experience low levels of pension coverage as the majority of the labour force remains uncovered by the various schemes in the country.According to the Uganda Retirement Benefits Regulatory Authority (URBRA), at least 13 million people out of the total labour force of about 14 million do not have access to pension, which risks bringing poverty in old age. This amount accounts for 89 per cent of the 15.6m labour force in the country.With the majority of that labour force in the informal sector, access to money after retirement is highly unlikely.“We have a huge informal sector where a lot of money is generated. It is our interest to extend coverage to these informal sector workers because they also need to save for their old age income,” Mr David Nyakundi Bonyi, the chief executive officer UBRA, said at the release of the Pension Industry Performance. Read more ▪ URBRA: Uganda’s retirement benefits sector grows by 25% Uganda’s pension sector has registered growth in its asset base at a rate of 25% in assets from Ugsh 5.2 trillion to Ugsh 6.5 trillion. Total inflows include employers’ and members’ contributions, income from rents, interest, capital gains and dividends.The ratio of pension assets to GDP edged at 8.1% compared to 7.2%. Similarly, return on investment grew by 18.2% according to Uganda Retirements Benefits Regulatory Authority (URBRA).The sector performance report, at least 16 employers introduced retirement saving schemes. Of these, 6 were occupational pension schemes, 10 employers and an additional 2 informal sector schemes for workers who were registered.While briefing the media on the performance of last financial year, URBRA Executive Director David Nyakundi Bonyi attributed the growth in the sector to sensitization, good governance and increased realization of the importance of saving among Ugandans. Read more ▪ URBRA: Pension regulator reveals Shs92b plan The Uganda Retirement Benefits Authority (URBRA) has finally revealed its plan for Uganda’s pensions sector. The details of the plan are contained in the 61-page document released in Kampala. URBRA has been operating without a proper plan and only appointed its first chief executive officer, Mr David Nyakundi Bonyi. According to Mr Andrew Kasirye, the chairman URBRA, part of the reasons for the plan was to grow savings of Ugandans.“In particular, the pension sector is expected by the end of this strategic plan to contribute to an increase in domestic savings, which will in turn deepen financial markets in the country,” Mr Kasirye said.The strategic plan is specifically inclined to stronger regulation and supervision by URBRA in a sector that had been self-regulating. URBRA, in the plan, will do this by strengthening their capacity as an authority. That explains why 87 per cent of the Shs91.2b overall budget for the plan will be going into training staff, increasing the number of workers, retaining them and ridding the organisation of bureaucracies. Read more ▪ URBRA: Uganda told to quickly liberalise pension Sector The new Chief Executive Officer of the Uganda Retirement Benefits Regulatory Authority (URBRA) David Nyakundi Bonyi has advised Uganda not lose more time on endless debates about pension sector liberalization.He said a considerable amount of time and energy has already been lost.The 53 year old Kenyan, who took over office, said the parliament, having listened to a considerable amount of debate should now seize the opportunity and make a conclusive and informed decision about pension liberalization in Uganda.Nyakundi holds a Bachelor of Laws degree and a Master of Laws (International Trade and Investment Law) from the University of Nairobi. Before his appointment, he was the Corporation Secretary and Manager Legal Services at the Retirement Benefits Authority (RBA) of Kenya. Read more ▪ URBRA: Civil servants to pay for their retirement In their report to the House, the MPs said: "It's not only unconstitutional but also a gross violation of human rights of soldiers when they apply for retirement and they are denied the chance."But while speaking to the press recently, Chief of Defence Forces Katumba Wamala explained: "We don't want to retire our people when their retirement package is not ready. We feel constrained when we retire our people and they are not getting their pension."More than 2,000 soldiers want to retire but have not been granted their wish for one reason: there is no money to pay them. The problem cuts across the public service arena, where, besides inadequate funds, there is glaring rot in the general system, which requires immediate resuscitation, said Rita Nansasi, the legal services manager at the Uganda Retirement Benefits Regulatory Authority (URBRA). Read more ▪ URBRA: Pension liberalisation, a bag of mixed nuts Only about one million people out of a 13.4 million total labour force in Uganda are formally saving for their old age.Of this, only about 350,000 (3.5%) employed in civil service are covered by public pension schemes, while just over 500,000 (or 3.5%) are contributors to the National Social Security Fund (NSSF), according to the Uganda Retirements Benefits Regulatory Authority (URBRA).Together with the public sector pension schemes, the NSSF and occupational schemes, total social security coverage is only about 7%, leaving out 12.4 million people, according to URBRA. The situation presents the enormous opportunity available to grow the savings base, expand the social security net and spark businesses to engage in social security services. Most of those without social security are in informal employment.The statistics, which were partly revealed in the preliminary population census report, form the basis for the liberalisation of the pensions sector.“It will pave way for increasing coverage of social protection to an increasing number of the working population and also ensure improvement in the governance of funds,” notes Moses Bekabye, the interim chief executive officer of URBRA. Read more ▪ The planned liberalised pension sector continues to attract players despite the withdrawal of the Retirement Benefits Sector Liberalisation Bill, from Parliament.Figures from the Uganda Retirement Benefits Regulatory Authority (URBRA) indicate the number of licensed players has increased from 351 to 385.This includes 11 administrators, five corporate trustees from three, 306 individual trustees from 300, five custodians, six fund managers and 52 Retirement Benefits Schemes.The Bill, which had been read for the first time in Parliament and later referred to the Finance Committee for further scrutiny, was withdrawn from Parliament early this month. This was after it emerged that Ministry of Finance officials had taken two different draft bills on pension reforms. Read more ▪ URBRA: Schemes to pay tax to pension authority Pension schemes will pay tax to help fund the Uganda Retirement Benefits Regulatory Authority (URBRA) in a move set to give the agency an independent budget.The tax will also be used to conduct capacity building trainings for the players so as to develop a strong and stable retirement benefits sector.Schemes receiving mandatory contributions will pay 0.05 per cent of the total assets to the Authority while those getting voluntary contributions will be required to contribute 0.025 per cent of their total assets. URBRA is still fully funded by government. Mr Moses Bekabye, the Authority’s interim chief executive officer said the levy will provide a more sustainable financing stream for the agency in the long term to enable it attain independence which is key in boosting trust and confidence in pension administration. Read more ▪ URBRA: Retirements regulator licenses 45 schemes Forty five firms have been licensed to operate as retirement benefits schemes by the regulator.Moses Bekabye, the acting chief executive of the regulator Uganda Retirement Benefits Regulatory Authority (URBRA), said the regulator is in the process of procuring a firm to undertake a survey that will determine how many retirement savings schemes exist in total.“We do not know how many retirement schemes exist but we know they are many. The survey will show what resources they have and where they have invested,” said Bekabye, urging private schemes that have not submitted their applications to do so.Among the 42 licensed schemes is the National Social Security Fund (NSSF), which is the only mandatory scheme in the country. NSSF will also compete with all the other firms for workers’ contributions once the liberalisation law is passed. Read more ▪ URBRA: Pension Trustees must have professional insurance Entities seeking to undertake trustee services in the liberalised pension sector must have professional indemnity insurance covers to guard them against huge financial losses, the Uganda Retirement Benefits Regulatory Authority (URBRA) interim chief executive officer has said. Speaking at a business reporters’ retreat in Entebbe recently, Mr Moses Bekabye said the cover help trustees, who will be responsible for making investment decision on behalf of pension schemes under a liberalised pension environment, not to pay huge sums of money as a result of unintentional financial loss.Trustees will be charged with ensuring the safety of savers’ money by investing it in investment vehicles that guarantee high returns. Read more ▪ URBRA: 351 players interested in open pensions sector bout 351 players have so far expressed interest to provide services in the pensions sector, of which 45 are pension schemes, 10 administrators, eight fund managers, four custodians, five corporate trustees and 211 individual trusts.However, two fund managers; a custodian, an administrator and 65 individual trustees, who applied for licences are yet to be licensed.Speaking in Kampala , Mr Moses Bekabye, the Uganda Retirement Benefits Regulatory Authority (URBRA) interim chief executive officer, said although players are eagerly waiting to compete in a liberalised pension environment and some rules and regulations have been drafted, the process is still constrained by lack of law to institute the reforms. Read more |