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{
    "id": 568315,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/568315/?format=api",
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    "content": "rejecting things like medical insurance, for example, which takes the burden away from the immediate family when someone falls sick and has to contend with high medical expenses. We have seen the debate that has been going on with the teachers and civil servants with a proposal to do medical insurance. I urge everyone to look at issues rationally and dispassionately because insurance and savings is something that we need to go into if we will build funds that can grow this country, guarantee our people a prosperous future and liberate Senators and Members of the National Assembly from persistent fund raisers. For instance, someone retired from Government service and he is unable to educate their children; or he is a retired teacher and is unable to take his family to hospital. Mr. Temporary Speaker, Sir, the retirement space is well regulated. We have a fairly competent authority, the Retirement Benefits Authority (RBA). When we come up with this Bill, we already stand guided by the RBA Act. Therefore, I will not attempt to discuss the technical aspects of this Bill. I appreciate the communication that there will be further consultations before we get to the Third Reading or a level where we can make substantive amendments. I congratulate the RBA for the good work it has done in regulating this space. When it comes to retirement benefits, we are ahead of our neighbours and a number of other nations in the world. I spent a number of years in Uganda. I was there at a time when the country was trying to liberalise the pension sector. There were new requirements that were largely borrowed from Kenya. Some of the newly introduced requirements were that custodians, administrators and fund managers were now a mandatory component of all retirement benefit schemes. What transpired is that many Kenyans crossed borders to go to Uganda to take up jobs and set up companies as custodians, administrators and fund managers. So, the expertise we have built as a country is now becoming beneficial to our neighbours who are just getting to the point of liberalization of their pension sector. Mr. Temporary Speaker, Sir, I noticed that this Bill explicitly states that this will be a defined contribution rather than a defined benefit scheme. Theorists on this matter will tell you that a defined benefit scheme is more advantageous to the employee because the benefits are set and are guaranteed to you. However, it is a disadvantage to the employer. When you look at the circumstances of our Government, it therefore, makes sense that we go for a defined contribution scheme. However, if I was in private practice and was to choose the kind of scheme that I would want to be part of, I would rather choose a defined benefit scheme as an employee, but this being Government, I believe that we can work with a defined contribution scheme. The Bill also envisages a situation where Local Authorities Pension Trust (LAPTRUST) and Local Authorities Pension Fund (LAPFUND) will be merged. The transitional mechanisms need to be very clear. What has happened in the past is that LAPTRUST and LAPFUND have been led by individuals who are strong, good and experienced managers with also strong and powerful personalities. When you start The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}