Aloys Kanyabitaro retired in 2017 after contributing to the pension scheme – managed by the Rwanda Social Security Board (RSSB) – for 40 years. But, he told The New Times, his employer did not pay contributions to the social security fund for 10 years, and he was not informed about the underlying reasons for that.
Kanyabitaro, 67, worked for Rwanda Tea Authority (OCIR THE, at the Rubavu-based Pfunda tea factory that it managed). This is one of three institutions merged to form the current National Agricultural Exports Development Board (NAEB) in 2011. The other entities are Rwanda Coffee Authority (OCIR CAFÉ) and Rwanda Horticulture Authority (RHODA).
He is one of the affected former workers of the entities in question who are claiming their right to pension.
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Kanyabitaro told The New Times that he receives Rwf90,000 in pension per month which corresponds to 30 years of contributions to the social security fund. If the 10 years in question were covered, he would be earning about Rwf26,000 more monthly benefits, equivalent to 20 per cent of his gross salary. His gross salary, which pension calculation is based on, was Rwf130,000 upon his retirement age, and pension benefits shall be increased by 2 per cent per cent for every additional year of contributing to the retirement fund for the minimum 15 years required by law.
Indeed, the 2015 law governing the organisation of pension schemes provides that for a member to access monthly old-age benefits, he or she shall meet requirements, including being at least 60 years old or of the age provided for by legally recognised specific statutes; to have contributed to the pension scheme for at least 15 years; and to have ceased to perform any remunerated activity.
The monthly old-age pension benefits shall be equal to 30 per cent of the average monthly earnings of the insured. The pension benefits shall be increased by 2 per cent percent for every 12 months (or every year) of contribution exceeding 15 years.
"I am getting smaller pension benefits than what I am entitled to, which negatively affects my living conditions,” Kanyabitaro said, calling for the adjustment of his pension, including the possibility of giving him the due unpaid benefits amount for the last six years which elapsed since his retirement.
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Speaking to The New Times, Jean de Dieu Bagirihirwe, the head of the Organising Department at the Central Organisation of Trade Unions in Rwanda (CESTRAR), said that on March 23, 2023, the labour union received requests for pension rights advocacy from 225 former employees representing some 1,207 workers of OCIR-THE. They include those still in employment and others who retired but found that the recorded period for which they contributed to the social security fund is less than the actual period, Bagirihirwe said, pointing out that they wanted their pension benefits to be adjusted after payment of due contributions to the scheme.
He indicated that for some of the affected people, pension contributions were not paid to the social security fund for more than 10 years.
He said that CESTRAR presented the case to NAEB, which surveyed to know the exact state of affairs.
On April 1, NAEB started meeting former employees of OCIR THE, OCIR CAFÉ, and RHODA who have issues related to pension contributions in RSSB, in line with finding a solution. According to a communique that NAEB posted on X, on March 26, the activity will run through April 5.
Gratien Musheruzi, who worked for OCIR THE at the Mulindi tea factory located in Gicumbi District, and is still an employee at the current Mulindi Factory Company, told The New Times that the former employer did not pay his contributions to the pension scheme from 2000 to 2009.
"The impact is that the non-payment of my pension contributions can affect me and my family — I might not get all the pension benefits I deserve if some of the years are not considered,” he said, pointing out that the longer one contributes to the pension scheme, the more pension benefits he or she gets.
Musheruzi voiced concern that some former employees retired but were given a lump sum (an amount of money paid once) as they were not entitled to a pension because the period for which they contributed to the pension scheme was less than the mandatory 15 years – because some years were not covered by the employer.
According to the pension law, if the member of the scheme reaches the retirement age without qualifying for entitlement to monthly old-age benefits – before having contributed to it for at least 15 years – he or she shall receive a lump-sum allowance equal to the average of his or her monthly earnings multiplied by the number of 12 months' period contained in the total months of contributions to the retirement fund.
Meanwhile, some of the affected people expressed optimism about eventually accessing their full pension benefits. As noted, NAEB gave them forms to fill in their claims which it will later verify and make the payments accordingly.