The government of Rwanda is set to launch a long term saving scheme where the money contributed by a member and the generated interest will be used as pension at a time he/she will no longer be able to work.
The draft law was approved by the cabinet meeting of September 13th 2016.
The Minister of Finance and Economic Planning, Amb. Gatete Claver has said that the government has been putting many efforts in citizens’ development programs including Mituelle de santé.
“These are not enough. There should be a saving scheme for old age (pension). Like other developing countries, all people are not employed but only such people with jobs can reserve part of their salary to save for their old age” he said.
“We have realized that only 10% of salaried employees saved in Rwanda Social Security Board (RSSB) but we want all Rwandans, farmers, private investors, among others, to save for the future,” he added.
“People already saving for old age are accustomed to regularly contribute and know the amount they will be given in pension. This saving scheme is different. All contributed money and its interest rate belong to you,” he said.
He said that the government will draft guidelines of this saving scheme while the Prime Minister’s order will delegate an institution in charge of managing contributed funds using ICT to ensure efficiency and security of the fund.
The minister said that a study about the saving scheme was done by the government assisted by US institution in 2014 while an Indian company demonstrated, in 2015 how the scheme will be implemented.
He explained that a member will start receiving pension at the age of 55.
It is expected that the saving scheme will be applied to salaried people, private investors, cooperatives and children above 16 years.