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Social security funds to be penalised for delays

Social security funds to be penalised for delays

Each Fund will be charged two per cent of the total pensioner’s benefits as a penalty to be paid plus total amount due to the claimant for failure to pay in time.

Ms Kabaka said the penalties will soon be applicable to ensure retirees are paid their dues without inconveniences. “We will start with two per cent as a minimum penalty, but the percentage may be increased depending on circumstances,” she said.

The minister said there were many complaints from retirees who blame the system where the funds have been delaying to pay members benefits. She said another new development on the amended Act is for public servants to be eligible to receive their pensions as they reach voluntary retirement age of 55, even if they were sacked.

That will be different from the past practice when a public servant automatically lost his or her pension as soon as he or she was fired. “In the amendment, if a staff is fired at 45 he or she will be required to wait until 55 to claim his or her pension. Earlier, one was not entitled to claim anything after he or she was sacked,” she said.

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Author: PIUS RUGONZIBWA

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