Makerere University has been taken to court for alleged breach of trust deed in regard to remitting employees’ monthly contributions to the National Social Security Fund (NSSF) instead of sending it to the staff retirement scheme.
In September 2009, Makerere University and the Registered Trustees of Makerere University Retirement Benefits Scheme signed a trust deed requiring the former to remit 10 percent of the employers’ contribution to the scheme.
In the case filed before the High Court, the Registered Trustees of Makerere University Retirement Benefits Scheme allege that the university administration only remitted 5 percent for the months of March, April and May this year to the scheme and did not remit the 10 percent which is the employer’s contribution.
Through their lawyers of Arcadia Advocates, the Registered Trustees of Makerere University Retirement Benefits Scheme allege that despite the demand for the unremitted contributions to be paid, the university is yet to pay to the contributions.
“On June 15, the plaintiff’s attention was drawn to a letter dated June 14, in which the University secretary of the defendant (Makerere University) directed the director of human resources and Bursar to remit to the NSSF the unremitted contributions for the months of March, April and May 2021,” reads the complaint in part.
The Trustees allege that under the terms of the Trust Deed, the University has a mandatory obligation to remit at the end of each month contributions on behalf of its employee’s equivalent to the 15 percent of the salary of each employee without fail.
It is alleged the failure to remit 10 percent of the monthly contributions for the three months is in breach of Trust Deed and is wrongful.
“The plaintiffs aver and contend that the decisions of the defendant to remit to the NSSF the 10 percent of the monthly contributions for the months of March, April and May 2021 payable to the plaintiff is in breach of the Trust Deed and is wrongful,” the complaint states.
It is alleged that the actions of Makerere University amount to breach of contract and are wrongful and have greatly inconvenienced the plaintiffs and the rights of the beneficiaries for which the university is liable in general damages.
Orders sought
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They are also seeking for a court declarations that the actions of the university in failing to remit the 10 per cent monthly contributions to the scheme as stipulated in the Trust Deed and Scheme rules is in a breach of trust.
“An order directing the defendant to comply with the terms of the Trust Deed as amended and the scheme rules and to remit all contributions for the months of March, April and May 20121 as stipulated in the Trust Deed and Scheme rules,” reads the complaint.
They trustees of the scheme are seeking for a permanent injunction restraining the university from remitting the employee contributions payable to the complainants to the NSSF or any other third party in breach of the trust deed as well as legal costs incurred.
Court summons
The court has now summoned Makerere University to defend itself against the case within 15 days failure of which judgement shall be given in its absence.
“Whereas the above-mentioned plaintiff has instituted a suit against you upon the particulars of which are set out in the copy of the plaint. You are hereby required to file a defence within 15 days from the date of service of this summons on you in the manner prescribed by the Civil Procedure Rules,” reads the court documents.
Makerere University Retirement Benefits Scheme was established by Makerere University under an irrevocable trust for providing pensions and other benefits for those of its employees who are admitted to membership under the provision of the rules of the Scheme
It brings together all permanent service staff of Makerere University who were in University Service by March 2009 and they contribute 5% of your gross monthly salary.
