Parliamentary Pensions Act

The Act applies to any person who, on the date the Act commences, was a member of Parliament (whether elected or ex officio) or is a member of staff of Parliament.

Provides definitions of terms used in the Act.

Establishes a fund called the Parliamentary Pensions Fund for the purposes of the Parliamentary Pension Scheme referred to in section 3.

States the Fund's objectives: collect contributions for members; ensure reasonable retirement benefits; optimise investment returns on those contributions; and maintain the Scheme's long-term solvency and sustainability.

The Government must contribute the Fund's initial liability for any pensionable service, in addition to the contribution under section 5.

The following payments shall be made from the Fund: pension; refund of contributions; expenses incurred in the management and administration of the Scheme; and trivial pension.

Establishes the Parliamentary Pension Scheme and requires members and the Government to make contributions to the Fund in accordance with section 5; declares the Scheme a body corporate.

The Scheme includes Members of Parliament and certain Parliamentary Commission staff, excludes members who are Vice President, Prime Minister, Speaker or Deputy Speaker, requires withdrawal if a member later takes those offices, deems 7th Parliament members and staff to have joined on commencement, and deems those who cease membership due to dissolution or court order to continue until they fail to be re-elected.

Monthly deductions and government contributions: members have a deduction equal to twenty percent of pensionable emolument; the Government must contribute thirty percent of each member's monthly pensionable emolument (or a rate to guarantee solvency); the Board must maintain a member account for each member; deductions are not refundable except as expressly provided.

Members may make voluntary contributions to the Scheme; a member may authorise the Parliamentary Commission in writing to deduct an amount from the member’s wage and remit it; the Parliamentary Commission must remit that voluntary contribution every month or at other times authorised by the member.

Deductions made under this Act must not be assignable, transferable, or liable to be attached, sequestered or levied for any debt or claim, subject to this Act; however, Subsection (1) does not apply to court orders for maintenance payments to a spouse, former spouse or child of the member.

If a person receiving a pension under this Act is adjudicated insolvent, that person continues to receive the pension and the pension is not subject to attachment under the insolvency laws.

The funds of the Scheme are restricted in use (prohibited from certain investments and lending), and the Board may determine terms for sending funds to members, securing mortgages/loans, and approving specialist medical recommendations for payment.

The Parliamentary Commission must decide whether a member’s service has been continuous.

Members who cease membership on or after age 45 with sufficient continuous service are entitled to a pension; members entitled to pension may opt for a commuted lump sum of up to 33 1/3% of their scheme credit.

A member who leaves membership and is under forty-five years old or has under ten years of pensionable service is entitled to a refund of their scheme credit.

Members who have contributed may access accrued benefits midterm; members aged 45+ with at least ten years' contributions may withdraw up to 20% of accrued benefits; the Board must prescribe terms and procedures by statutory instrument which must be laid before Parliament for approval.

Members who leave before age 45 with at least ten years' pensionable service may leave their contribution in the Scheme as deferred benefits until they reach age 45; on attaining age 45 they shall be paid their scheme credit as pension (subject to section 15(4)).

A member who retires or ceases to be a member because of ill health is entitled to payment: if they have ten years or more of pensionable service they are entitled to a pension under section 15; if they have less than ten years they are entitled to a refund of contributions plus the Government contribution with interest determined by the Board.

Members and pensioners must nominate a beneficiary in the prescribed form; the Board must distribute death benefits according to that nomination and may, in exceptional circumstances, determine distribution where no nomination exists.

Persons receiving pensions who are elected MPs or appointed on permanent and pensionable terms to the Parliamentary Commission must contribute to the Fund; pension payments are suspended while they hold those positions and no pension is paid to a serving Member of Parliament.

Establishes the Parliamentary Post‑Retirement Medical Fund; the Board shall deduct up to two percent of the contribution made under section 5 and remit that amount to the Fund, the Fund must be kept separate and the Board will make regulations under section 50.

Establishes a Parliamentary Pension Scheme Board of Trustees, sets its composition and duties, requires at least one-third of members be women, prescribes election of the Chairperson, makes the Clerk to Parliament the secretary and principal signatory (ex‑officio without vote), allows the Board to function despite vacancies, requires appointment of professional officers, sets board member term to five years with one possible re‑term, and lists grounds on which a trustee ceases to hold office.

The Board may exercise, perform and discharge specified powers to manage the Scheme, including control and administration of assets, issuing guidelines, delegating powers, forming sub‑committees, determining trivial pensions on actuary advice, and taking other expedient actions to preserve the Scheme and members' rights.

The Scheme must have a Chief Operations Manager appointed by the Board for a term of four years renewable once; the Chief Operations Manager must be the accounting officer, be answerable to the Board, and (subject to the Board's supervision) manage day-to-day operations and perform functions assigned by the Board.

The Board may appoint necessary staff on the Chief Operations Manager's advice; staff shall hold office on terms specified in their instruments of appointment.

The Fund must pay the expenses for management and administration of the Scheme and the Fund; the Parliamentary Commission must pay the set‑up costs of managing the Scheme and the Fund.

The Board must meet at least once every four months or when at least three members request it in writing; the quorum is five members; the Board may regulate its own procedure subject to the Act; decisions are by simple majority.

Interest on each member's scheme credit must be calculated at the rate specified in Schedule 3 to this Act.

Establishes a reserve account of the Fund and specifies types of income to be deposited, and allows the Board to determine income from investments.

The Board must keep proper financial books and prepare annual accounts; accounts must be audited within three months of year-end by the Auditor General or an auditor the Auditor General appoints; the Board must submit audited accounts and the auditor's report to the Annual General Meeting within two months of receiving the audited statement.

The Scheme must have an investment policy approved by the Board.

The Fund and any person acting for it are exempt from stamp duty on instruments, benefit payments, or contribution refunds under this Act.

Pensions, benefits or refunds paid under this Act are exempt from income tax.

This Part applies to (1) a person who ceases to hold the office of Speaker or Deputy Speaker after 17 March 2023, and (2) a person who held that office on or after 1 January 1980.

Defines terms used in this Part: 'daughter' and 'son' include adopted children recognised under Ugandan law; 'dependent' includes spouse, parent, son or daughter; and 'retirement' means ceasing to hold office as Speaker or Deputy Speaker except as in section 37(3).

Rules on retirement benefits for persons who cease to hold the offices of Speaker or Deputy Speaker: entitlement to schedules' benefits, exceptions where removed for misconduct or disqualification, right to rejoin the Scheme in limited cases, administration and funding arrangements, and special treatment for infirmity.

The funeral of a person who dies while holding the office of Speaker or Deputy Speaker must be conducted in accordance with Part E of Schedule 4 to this Act.

Spouses of a Speaker or Deputy Speaker who die in office are entitled to specified benefits (Speaker: Part C of Schedule 4; Deputy Speaker: Part C of Schedule 5), granted collectively to the spouse(s) until their death.

If a Speaker or Deputy Speaker dies in office without a spouse, a dependent is entitled to benefits set out in Part D of Schedule 4 or 5, guaranteed for twenty years and to be granted collectively if there are multiple dependents.

If a former Speaker or Deputy Speaker dies in retirement, their surviving spouse(s) and dependents are entitled to monthly allowances for the unexpired period of twenty years from the date of retirement.

A person who stops being Speaker or Deputy Speaker can get a refund of their contributions (and Government contributions) with interest; the Speaker or Deputy Speaker may defer contributions; if a member becomes Speaker or Deputy Speaker the member and Government must not contribute during that period.

Allowances and benefits under this Part must be reviewed every five years.

The Government must guarantee the solvency of the Scheme during the short and medium term for any payment that may be required under it.

The Board of Trustees must submit to Parliament, at least once every six months, a report on the performance of its functions; Parliament must consider that report.

All accounts of the Scheme must be audited by the Auditor General or an auditor appointed by the Auditor General at least once in a financial year.

The Board must, at least once every three years, appoint an accredited actuary to review the Scheme and Fund and report with recommendations to the Board.

A member (or if deceased, their spouse, dependent, beneficiary or nominee) may, within ninety days of being informed of a Board decision, apply in writing to the Board to refer the case to the Authority.

Specifies who may or must amend particular Schedules: the Minister must amend Schedule 1; the Board may amend Schedules 2 and 3 by statutory instrument in consultation with the Parliamentary Commission and after actuarial processes; Parliament may amend Schedules 4 and 5 by resolution.

The Board may, in consultation with the Parliamentary Commission and by statutory instrument, make regulations to implement this Act.

The Board must submit to the AGM an annual report within four months after the end of each financial year containing the audited accounts of the Fund, the status of the Scheme and a statement of the Fund's investments, and any other information the AGM may require.