WITHDRAW OF THE PENSION SECTOR LIBERALIZATION BILL IS ILL ADVISED
The former privatization state minister Aston Kajara says a move by the government to withdraw the pension sector liberalization bill is ill advised. Last week Cabinet instead approved to amend the NSSF act which will see the fund maintain its monopoly as the basic national scheme and continue to collect mandatory collections from formal workers.
Making the announcement on Tuesday the minister for Gender Labour and social development Janat Mukwaya said that opening up mandatory contributions would complete the surrender of both the banking and non-banking financial sector to foreign capital.
However Kajara who is also the Mwenge South MP says the NSSF currently does not have the capacity to capture all the pensionable employees in the country.
Kajara also argues that opening up the sector would allow for the creation of countless pension schemes that would boost the accumulation of investment capital for the financial sector. He argues that this would also provide better returns for members due to the competitive nature of the sector.