The government will introduce a new pension scheme for public servants on July 1, 2027, requiring workers to contribute 5 per cent of their basic salary.
The government will contribute another 10 per cent for each employee under the Public Service Pension Scheme.
The scheme, established under the Public Service Pension Fund law, will combine guaranteed retirement benefits with regular contributions from employees and the government.
It will retain the existing formula for calculating pensions. However, the fund will invest members’ contributions to finance their retirement benefits.
The scheme will cover civil servants in traditional government service, local governments and the teaching service. Uganda Prisons staff and employees of government agencies without separate pension schemes will also join.
Public servants below 55 years will qualify to join the scheme. Those aged 55 and above may join it or remain under the current pension arrangement.
The government introduced the reform to address weaknesses in the non-contributory pension system. These include delayed payments and inadequate funding for retirement benefits.
Members will make contributions throughout their years of service. The fund will invest the money according to the law and use it to pay benefits after retirement.
The Ministry of Public Service said the reform would protect benefits earned before the new scheme begins.
The government will take responsibility for pension obligations arising from service completed before July 1, 2027. This protection will apply to public servants already employed before that date.
Workers who leave public service before qualifying for a pension will also receive a contribution-based benefit.
Those who resign or leave without meeting pension requirements will access qualifying contributions according to the scheme’s rules.
The retirement age will remain at 60 years. The existing retirement options and formula for calculating pension benefits will also remain unchanged.
Qualifying retirees will continue receiving pension payments for life. When a pensioner dies, eligible beneficiaries will receive benefits as provided by law.
The Ministry has instructed accounting officers to prepare for the transition. They must update and transfer staff records, clean up employee data and budget for the contributions.
Institutions must provide for the 5 per cent employee contribution and the government’s 10 per cent contribution.
The Ministry also asked government institutions to educate workers about the changes and allow them to attend information sessions.
“It is your pension, it is your gratuity, and you are the beneficiary,” the Ministry told public servants, emphasising the importance of understanding and preparing for the new pension arrangements.
The government expects the scheme to strengthen retirement security, improve pension financing and ensure prompt payment of benefits.
