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An assessment of reform options for the public service pension fund in Uganda

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  • Bogomolova, Tatiana
  • Impavido, Gregorio
  • Pallares-Miralles, Montserrat

Abstract

This paper analyzes the future liabilities that the Ugandan Public Service Pensions Fund might accumulate under the provisions of the Pensions Act (CAP 286) unless it is reformed. It then discusses alternative reform options that can be used in designing an educated homegrown reform of the fund. The paper supports a hybrid (two-pillar) reform option composed of a small defined benefit scheme and a complementary defined contribution scheme, instead of a pure defined contribution (monopillar) reform option discussed by policymakers in the country. The main reason for this is related to the fact that hybrid and pure defined contribution reforms will have the same impact on reducing pension expenditure (for the same grandfathering rules and surplus in the first pillar). In addition, everything else being equal, the hybrid reform is likely to produce higher average replacement rates due to the redistributive and pooling properties of the small defined benefit pillar.

Suggested Citation

  • Bogomolova, Tatiana & Impavido, Gregorio & Pallares-Miralles, Montserrat, 2006. "An assessment of reform options for the public service pension fund in Uganda," Policy Research Working Paper Series 4091, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4091
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    References listed on IDEAS

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    1. palacios, Robert & Whitehouse, Edward, 2006. "Civil-service pension schemes around the world," Social Protection Discussion Papers and Notes 90340, The World Bank.
    2. Holzmann, Robert & Palacios, Robert & Zviniene, Asta, 2004. "Implicit pension debt: issues, measurement and scope in international perspective," Social Protection Discussion Papers and Notes 30153, The World Bank.
    3. Mr. Ian Lienert & Jitendra R. Modi, 1997. "A Decade of Civil Service Reform in Sub-Saharan Africa," IMF Working Papers 1997/179, International Monetary Fund.
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    Cited by:

    1. Elizabeth Lule & Markus Haacker, 2012. "The Fiscal Dimension of HIV/AIDS in Botswana, South Africa, Swaziland, and Uganda," World Bank Publications - Books, The World Bank Group, number 2382, April.

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