Management of public sector retirement benefits scheme in Uganda: A case of Public Service Pension Scheme

Abstract

The purpose of the study was to examine the problems in the management of Public Sector Retirement Benefits Scheme in Uganda. The objectives of the study were to ascertain the time taken to process retirement benefits, identify reasons for the delay in benefit payments and its effect to members and Pension scheme, and strategies to improve the efficiency in payment of retirement benefits. A cross sectional research design was adopted based on a population comprising of Ministry of Finance Planning and Economic Development, Uganda Retirement Benefits Regulatory Authority, Ministry of Public Services, Ministry of Gender Labor and Social Development and Chief Accounting Officers. The sample size of 127 was selected using purposive and simple random sampling methods. Interview guide and Checklist were used to collect data in addition to observation of files in the Pension Management System. The study revealed that it takes on average 16.2 months for a retiree to receive retirement benefits. The delay is mainly due to errors and omissions of personal data in the Integrated Personnel and Payroll System, bureaucratic procedures, prohibitive benefits application requirements and limited human resource capacity, The delays had several effects including retirees’ wasting a lot of their economic resources following up on benefits, and many fail to cater for their basic needs and financial obligations such as school fees for children and payment of loans. In view of the findings, there is a need to reduce on the number of steps involved in the benefits processing, increase the number of staff in the registries and department of compensation, prioritize retirement benefits and timely release of funds appropriated by parliament, and continuous mentoring and coaching in the use of Integrated Personnel and Payroll System.