Former and current employees of the BoU are facing a lawsuit from the bank for allegedly reducing their ages in order to extend their contracts and receive continued pension and other benefits.
The bank alleges that some employees reduced their ages by over four years while registering for national identity cards under the Registration of Persons Act No. 4 of 2015.
The bank contends that this was done to delay retirement dates or accrue more pension or NSSF contributions, as the obligation to pay the 10 percent employer’s contribution to NSSF ceases when an employee reaches the age of 55.
The bank is also in a dispute with NSSF over contributions and penalties, with NSSF arguing that the National Identification and Registration Authority’s declared ages have retrospective effect in law and are binding on the Bank of Uganda.
Retirement benefits are provided by pension systems based on several variables, including years of service and age at retirement, and lying about one’s age to earn a greater pension benefit is against the law and can result in serious repercussions, such as the loss of pension payments and possible criminal prosecution.
A new automated system has been introduced to prevent public sector employees from changing their age by focusing on the age stated at the time of entry into the public service.
Notu, the General National Organisation of Trade Unions, has called for a union with a collective bargaining agreement to represent the workers at Bank of Uganda.
The bank has filed a lawsuit to obtain a declaratory judgement from courts of law to conclusively resolve the matter.
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