Uganda Retirement Benefits Regulatory Authority Act, 2011

This section provides definitions of terms used in the Act.

The Authority's funds are listed and the Authority may apply those funds to pay expenses, obligations or remuneration connected to its functions under the Act.

Establishes the Retirement Benefits Regulatory Authority Fund and requires the Authority to manage and control the Fund to defray the Authority's expenses.

The Board must open and maintain bank accounts needed for the Authority's functions and must pay into them monies received from Government and other monies received in the exercise of the Authority's functions.

The Board may, with the approval of the Minister, borrow money from any source to meet the Authority's obligations or discharge its functions under this Act.

Funds of the Authority not immediately required may be invested in secure investments in consultation with the Minister and in accordance with the Public Finance and Accountability Act, 2003.

The Chief Executive Officer must prepare and submit the Authority's next-year estimates and operating plan to the Board within three months before the end of each financial year; the Board must then submit those estimates to the Minister for approval within two months of receipt.

The Authority's financial year must be the same as the Government's financial year.

The Auditor General (or an auditor he appoints) must audit the Authority's accounts; the Board must submit the Authority's accounts and income/expenditure estimates to the Auditor General (or an auditor he appoints) within three months after each financial year ends.

The Board must, within one month of receiving the audited accounts referred to in section 26, submit to the Minister an annual report on the Authority's operations for the preceding year (including an audited financial statement); the Minister must submit bi-annual reports to Parliament on the Authority's operations.

A person must not establish or operate a retirement benefits scheme except under a licence issued by the Authority; existing schemes established by written law must obtain such a licence.

Applications to establish a retirement benefits scheme must be in the prescribed form, accompanied by the prescribed fee, and must state specified details; establishing or operating a retirement benefits scheme without a licence is an offence punishable by a fine not exceeding one thousand five hundred currency points or imprisonment not exceeding twelve years, or both.

The Authority may grant or refuse licences to operate retirement benefits schemes subject to specified conditions; it must publish an annual list of licensed schemes and must notify applicants in writing when refusing a licence with reasons.

A licence issued to a retirement benefits scheme is valid from the date it is issued and remains in force until the scheme is wound up in accordance with scheme rules or the law, or until the licence is revoked under this Act.

The Authority may revoke or, in specified cases, shall revoke the licence of a retirement benefits scheme; it must give the trustee at least thirty days written notice, consider written representations by the sponsor, and may (with Board approval in consultation with the Minister) take over distribution of assets or appoint an interim administrator; members' and beneficiaries' rights are protected.

Members aggrieved by scheme decision may appeal to the Authority; persons aggrieved by an Authority decision may appeal to the Tribunal; where a dispute arises between any person and the Authority about its powers either party may appeal to the Tribunal in the manner prescribed by regulations.

Establishes the Retirement Benefits Appeals Tribunal and sets membership, appointment and qualification rules.

On appeals, the Tribunal has the powers of the High Court to summon persons, take evidence on oath, proceed in the absence of a party, adjourn hearings, order costs enforceable like High Court orders, issue commissions to examine witnesses abroad, and compel evidence or production of documents; the Tribunal may accept affidavit evidence and administer interrogations when desirable to avoid expense or delay; documents signed by the chairperson are deemed to be issued by the Tribunal.

A party to Tribunal proceedings may, within thirty days (or longer if allowed by the High Court), lodge a notice of appeal with the High Court registrar; a party intending to appeal must serve a copy of the notice on the other party.

The Minister must make rules for the effective operation and management of the Tribunal.

Every retirement benefits scheme must have a licensed custodian, trustee, administrator and fund manager.

A trustee of a retirement benefits scheme must open and maintain bank accounts for scheme functions, pay into them member contributions and other monies received in the exercise of functions, and keep monies from subsections (1)(a) and (b) in separate accounts.

Trustees must submit audited accounts to the Authority within four months after the end of each financial year; certain scheme insiders may not be appointed as auditors; contravening trustees face fines up to five thousand currency points or up to three years imprisonment, or both.

Trustees must display audited annual financial statements at their office year-round; schemes open to the public must publish audited annual financial statements and the auditor's report in widely circulated mass media within four months after each financial year, in a form the Authority may prescribe by notice in writing.

Trustees must keep proper accounting records for at least ten years and must submit an annual report to the Authority within four months after each financial year-end that includes an audited financial statement and other information the Authority may require.

Every retirement benefits scheme must have a prudent investment policy for the scheme's funds; the Minister may make regulations (in consultation with the Board) to implement that investment policy.

The funds of a retirement benefits scheme must not be used for specified purposes; a prescribed proportion of a member's benefits may be used for a mortgage to buy a home or to pay medical treatment (subject to prescribed terms and recommendation); the Authority may suspend or disqualify scheme managers who contravene this section.

Employers must pay employee retirement contributions into a licensed retirement benefits scheme and remit them before the 15th of the following month; failure is an offence attracting payment of the remittance and a fine of not less than 10% per month or part-month on unpaid contributions.

If a judgment or order is made against a member of a retirement benefits scheme, no execution, attachment or other process may be issued against that member’s contributions or funds.

Trustees must appoint an accredited actuary at least once every three years to value scheme resources and liabilities and evaluate financial consequences of risks; trustees must submit the actuarial valuation report to the Authority within three months; the Authority may, in exceptional circumstances, require trustees to have such an evaluation done by an actuary approved by the Authority at the scheme's expense.

Defines 'fiduciary' as any person responsible for control, administration or management of a retirement benefits scheme; applying or interpreting scheme rules to determine members' benefits; or managing assets or investments of such a scheme.

A fiduciary must act with care, skill, diligence, good faith and prudence; avoid misleading or deceptive acts; act in the best interests of scheme members and beneficiaries; ensure decisions comply with scheme rules; act impartially; perform functions according to the Act and regulations; and may obtain expert advice.

If the Authority considers a retirement scheme fiduciary has engaged in unsafe or unsound practice, the Authority must in writing direct the trustee/custodian/administrator/fund manager/fiduciary to refrain from the act; contravention is an offence punishable by up to five hundred currency points or up to three years' imprisonment, or both.

It is an offence for a person (including an employee of the Authority) to obstruct, refuse to comply with orders, refuse access to records, present false documents, misuse information, or collude causing loss; on conviction the offender faces a fine up to five hundred currency points or imprisonment up to three years, or both.

Any person who contravenes a provision of this Act expressly stated to be an offence without a prescribed penalty, or who fails to comply with a direction given by the Authority under this Act, is covered by this general penalty provision.

Certain officials and employees acting in good faith while carrying out the Authority's functions are not personally liable for acts or omissions.

A notice or document may be served on the Authority by delivery at its office or by registered post to its office.

The Minister must, in consultation with the Board and by statutory instrument, make regulations to implement and administer this Act.

The Minister may amend Schedules 2 and 3 of this Act, but only with the approval of Parliament and by statutory instrument.

The Authority may issue guidelines to better carry out its object and functions under this Act.

People who already have a pension or other retirement benefit under earlier written law keep their entitlement and shall continue to receive it after this Act comes into force.

The Act takes precedence over other written laws (except the Constitution) on retirement benefits schemes and shall prevail where there is a conflict.

Existing retirement benefits schemes and persons who immediately before commencement are custodians, trustees, administrators or fund managers must apply to the Authority for a licence within twelve months after the coming into force of this Act.