𝐍𝐞𝐰 𝐏𝐮𝐛𝐥𝐢𝐜 𝐒𝐞𝐫𝐯𝐢𝐜𝐞 𝐏𝐞𝐧𝐬𝐢𝐨𝐧 𝐒𝐜𝐡𝐞𝐦𝐞 𝐭𝐨 𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐞 𝟓% 𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐞 𝐚𝐧𝐝 𝟏𝟎% 𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐫 𝐂𝐨𝐧𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧𝐬
Government is preparing to transition public servants to a new Public Service Pension Scheme, with employees expected to contribute 5% of their basic salary and Government contributing 10%, beginning 1 July 2027.
The new scheme, established under the Public Service Pension Fund law, will operate as a hybrid defined-benefit scheme, retaining the pension formula used to determine retirement benefits while introducing regular contributions and investment of members’ savings.
The reform will cover public servants in traditional government service, local governments, the teaching service, Uganda Prisons and government agencies that do not belong to another pension scheme.
Employees below 55 years will be eligible to join the new scheme, while those aged 55 and above will have the option to join or remain under the existing arrangements.
Government said the reform is intended to address longstanding challenges under the non-contributory pension system, including delays in pension payments and the need to ensure that retirement benefits are adequately funded.
Under the new arrangement, members will build up contributions during their working years, with the funds invested in accordance with the law to support the payment of retirement benefits.
The Ministry also clarified that existing pension rights will be protected. Public servants who are already in service before 1 July 2027 will have their past service accounted for, with Government taking responsibility for obligations arising from their service before the new scheme takes effect.
The reform will also provide a contribution-based benefit for members who leave public service before qualifying for retirement.
Members who have made contributions but do not qualify for a pension, including those who resign, will be able to access their qualifying contributions in accordance with the scheme’s provisions.
The Ministry further clarified that the current retirement age of 60 years remains unchanged, as do the existing modes of retirement and the pension formula used to calculate retirement benefits.
Pension payments will also continue for the lifetime of a qualifying retiree. Where a pensioner dies after retirement, eligible beneficiaries will continue to receive benefits in accordance with the law.
Responsible officers have been urged to prepare for the transition by updating and transferring employee records, undertaking data clean-up and ensuring that budgets provide for the required 5% employee and 10% employer contributions.
The Ministry also called for continued sensitisation of public servants on the reforms and encouraged institutions to provide staff with opportunities 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 Public Service Pension Scheme is expected to strengthen retirement security, improve the sustainability of pension financing and ensure that public servants receive their benefits when they qualify.
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