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Pension sector liberalisation bill faces more opposition

The Pension sector liberalisation bill which has spent time in parliament is now facing another hurdle- from the Minister of Public Service, Mukasa Muruli. He argued that it was risky for a country to put its pensioners’ savings in the hands of investors who could flee with the money in case their businesses fail. He said countries which had liberalised their pensions sectors are now going back to the government managed pension sector model. However supporters of the bill say they are tired of NSSF managing savings over government inefficiency which puts at risk workers savings. The other issue of contention has been a clause in the bill which suggests that pensioners’ savings should be taxed. Critics say taxing pensioners’ savings defeats the purpose of saving in the first place.

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