An Assessment of Reform Options For The Public Service Pension Fund In Uganda

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...

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Bibliographic Details
Main Author: Bogomolova, Tatiana
Other Authors: Impavido, Gregorio, Pallares-Miralles, Montserrat
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2006
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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653 |a Financial Literacy 
653 |a Finance 
653 |a Pensions and Retirement Systems 
653 |a Social Protections and Labor 
653 |a Emerging Markets 
653 |a Contribution 
653 |a Capital Market 
653 |a Pension Fund 
653 |a Contribution Scheme 
653 |a Economic Development 
653 |a Pension Reform 
653 |a Debt Markets 
653 |a Private Sector Development 
653 |a Financial Economist 
653 |a Finance and Financial Sector Development 
653 |a Pension 
653 |a Liabilities 
653 |a Insurance 
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700 1 |a Pallares-Miralles, Montserrat 
700 1 |a Bogomolova, Tatiana 
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520 |a 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