Uganda is a member of the East African Community (EAC), along with Kenya, Tanzania, Rwanda and Burundi. The long term objective was to create a customs union, a currency union and eventually a political federation.

In July 2009 it was agreed that the EAC, in collaboration with the member states including Uganda, would compile a draft strategy of pension sector reform and would undertake a study on the consolidation of financial sector regulation in the EAC.

Social pension benefits are provided by the National Social Security Fund (NSSF) in Uganda. Private pension plans are not covered under separate legislation. The Uganda Insurance Commission (UIC) supervises the insurance industry and although not specified in the insurance act, the UIC is the de facto authority in respect of insured pension funds.

On a local level, the main problems facing the development of the pensions sector in Uganda include: a lack of public confidence in investment products; perceived insecurity of the insurance/pensions industry; lack of personal or corporate income for private pension provision; limited tax advantages of pension plan contributions and benefits; and limited investment options.

In a recent review of the NSSF further issues were considered, including:

• NSSF governing law and operations
• not all formal sector employees are covered by the NSSF
• no provision is made for informal sector employees
• lack of a universal pensions regulator.
  

The review resulted in the Retirement Benefits Regulatory Authority Bill which will be presented to parliament for consideration in 2010.

The impact of EAC developments on the enactment of the draft Ugandan legislation remains to be seen, however, it seems inevitable that major pension sector reform on a regional level is likely to be mooted in the near future.