RETRED civil servants whose payments are delayed by the social security funds need to be paid an interest on the delayed funds, a top legislator has declared.

Dr Tulia Ackson, the Speaker of the National Assembly, issued this advice in the debating chamber yesterday during the question and answer session to cabinet ministers, underlining the need to push the government to come up with plan to improve laws on the payment of benefits to retirees.

There ought to be no delays put up by social security funds, she said, citing the need to put interest charges on social security funds that are repeatedly failing to fulfil their responsibilities.

Husna Sekiboko (Special Seats) had in a question sought for explanation why a good number of retired civil servants enrolled in parastatal and government service funds merged into the Public Service Social Security Fund (PSSSF) or shifted to the National Social Security Fund (NSSF) haven’t been paid their overdue retirement benefits.

Patrobas Katambi, the Labour, Youth, Employment and People with Disabilities deputy state minister in the Prime Minister’s Office (PMO) responded that the government recognises the importance of paying retirees their benefits on time.

He cited reports showing that entitlements inherited by NSSF and PSSSF in 2018 had been paid by 78 percent and other payments were on-going, whereupon the Speaker asserted that civil servants often retire and then start grappling to obtain their benefits, for anything from six months to one year.

Underlining that this is not fair.

The government had already improved the information database on retired servants and it is currently prepared six months before they retire, she stated, noting that it is important for civil servants to be paid early to support their living.

“My general advice is that if employers delay to submit contribution, the law requires them to pay interest, so the same should be applied to social security funds that if it happens they delay paying the retirees, they should also be charged an interest. So we expect them to improve the current law to make this a legal order,” the top legislator intoned.

Earlier, in his basic question, Ngara MP Ndaisaba Ruhoro queried on government plans to review and change the formula for computing retirement benefits as the 33 percent lump sum has negative effect on their retirement arrangements and capacity.

The deputy minister said the government recognises the importance of improving benefits, including lump sum payments for retirees, pointing out that the law wants social security schemes to conduct assessment to measure endurance every three years.

This helps to provide advice and recommendations, including improvements to members’ benefits in relation to the new regulations that came into force in July 2022, he said, insisting that it is important to consider the advice of experts regarding operations, management and sustainability of social security funds on the basis of actuarial science.

The new formula for computing retirement benefits of 33 percent lump sum has been a thorn for many public employees inching to retirement for its effects on their resettling in the community after ceasing to obtain salaries, observers noted.