Concerns Raised Over Medical Coverage, Pension Distribution, and Inflation Adjustments
As the government works to improve the welfare of its senior citizens, retirees are raising a series of concerns they say require urgent attention. Their grievances range from inadequate medical coverage and outdated pension laws that deny some retirees their benefits, to unfair survivor benefits and pensions that fail to keep up with inflation.
Lack of Medical Coverage for Pre-RAMA Workers
One major concern raised is the exclusion of government and private sector employees who retired before the establishment of the Rwanda Medical Insurance Scheme (RAMA) in 2001. Although they served in public service, these retirees are not covered by this public medical insurance scheme. Dorothée Uwimana, Chairperson of the Rwanda Pensioners’ Association, proposed that these individuals be covered under RAMA, provided they make the required contributions to the scheme.
During a session aimed at evaluating efforts to improve the wellbeing of the elderly, Senator Adrie Umuhire, the Chairperson of the Senate’s Committee on Social Affairs and Human Rights, expressed concern over the situation, questioning why individuals who worked for the government are not covered by the same healthcare system as others. The Rwanda Pensioners’ Association is urging the government to collaborate with the Rwanda Social Security Board (RSSB) to find a solution that allows these retirees to access RAMA, possibly through contributions.
Questionable Distribution of Pension Benefits After Death
Retirees are also calling for a review of how pension benefits are distributed to surviving family members after a pensioner’s death. Currently, a spouse receives only 50 percent of the pension. For instance, if a pensioner was receiving Rwf200,000, their spouse only gets half of it (Rwf100,000) after their death. Pensioners believe that surviving family members, especially spouses who carry on family responsibilities alone, should receive 100 percent of the pension amount.
Senator Umuhire questioned why the full amount cannot be given to the surviving spouse or partner, especially considering they are left with the responsibility of caring for the family.
Medical Cover for Families Ends After Three Months
Another issue concerns medical coverage under RAMA, which currently ceases three months after a pensioner’s death. The Pensioners’ Association argues that this leaves families vulnerable, particularly if the deceased was the only source of medical insurance. Uwimana stressed the need to extend medical benefits for surviving family members, stating, “Family members should not be left without healthcare in a time of need.”
Pensions Not Adjusted for Inflation
Pensioners are also asking the government to regularly adjust pensions to reflect inflation and the rising cost of living, a process known as indexation. Faustin Minani, Second Vice-President of the Rwanda Pensioners’ Association, emphasized that pensions should be increased in line with changes in the value of the franc and market prices. He noted that pensions are calculated based on the year a worker retires, and the value of the franc varies depending on the retirement year.
A 2015 pension law mandates that a public entity in charge of the pension scheme shall conduct an actuarial study for the pension scheme at least once every five years. If the study indicates a possible negative impact on the economy, the amount of contributions shall be increased based on legal provisions, and pension benefits may also be adjusted accordingly.
Outdated Law Denies Some Retirees Their Pensions
Some retirees are being denied their pensions despite having made the minimum 15 years of contributions to the scheme due to a clause from a 1974 law. This outdated law required retirees to claim their pensions within 10 years after retirement or forfeit them. Although this clause was removed in the 2015 revised law, the change does not apply retroactively to those who retired before that law came into effect. Minani called for a legal amendment to resolve this urgent issue, stating, “People who are still alive should not be denied their pensions simply because they retired under an old law.”
Lack of Representation on the RSSB Board of Directors
The Rwanda Pensioners’ Association is demanding representation on the Board of Directors of RSSB, the institution responsible for managing pensions and other social security schemes. The association argues that having a voice on the board would ensure that the unique concerns of retirees are taken into account when decisions are made.
Key Points
- Retirees demand inclusion in RAMA for pre-2001 retirees.
- Surviving spouses receive only 50% of pensions after death.
- Medical coverage ends three months post-retirement death.
- Pensions not adjusted for inflation, affecting retirees' livelihoods.
- Outdated laws deny pensions to some retirees.
- Call for representation on the RSSB Board of Directors.
Sources: Retirees call for urgent reforms in pension, healthcare systems
