By Our Reporters.
The Ministry of Gender, Labour and Social development (GLSD) has said savers will get their midterm access to NSSF savings in two months’ time after finalizing with the statutory instrument that allows the payments.
President Museveni last month assented to the amended National Social Security Fund Bill 2021 to allow workers who have saved for over 10 years and have reached 45 years of age, allowed 20% midterm access to their savings with NSSF.
Many savers had been excited and upbeat with the developments though some were disappointed that they could not get the money early to allow them pay school fees as schools opened January 10, 2022.
Labour Minister Hon Betty Amongi said the amended act would only come into force upon its publication in the Ugandan Gazette, an action she said will soon be implemented.
“The provision regarding midterm access to benefits by qualifying members of the Fund shall come into effect after I have issued a statutory instrument that will guide on the terms and conditions, and procedures for accessing benefits,” she said.
The Minister said the instruments are in the offing but added that all modalities would be finalized within 60 days after publication of the Act in the Uganda Gazette.
The minister stated that as part of the efforts to publish the act in the Uganda Gazette, the Gender Ministry has started drafting of regulations to ensure the statutory instrument is prepared to allow midterm access for NSSF savers.
“The law provides that the minister puts in place a statutory instrument to guide the midterm access and must be laid before parliament. The time frame provided for is 60 days but we might not reach this time.”
Hon Amongi said although there are over two million people saving with the National Social Security Fund (NSSF) only 90000 members qualify for midterm access.
“Only a member who is 45 years of age and above and has made contributions to the fund for at least ten years, is eligible to mid-term access to his or her benefits, of a sum not exceeding 20% of his or her accrued benefits,” the Minister said.
She said: “A member who is a person with disability, is 40 years of age and above and has made contributions to the fund for at least ten years, is eligible to mid-term access, of a sum of 50% of his or her accrued benefits,” She said.
She noted that the members who are eligible for the midterm access will share a sum of Ushs 902.5 billion.
NSSF Managing Director Mr Richard Byarugaba, said the fund would pay between Ushs 950b and Ushs 1 trillion if all eligible beneficiaries turned up, adding that they have set aside up to Ushs 1 trillion.
He dispelled uncertainty among the savers that the Fund lacks money to pay eligible beneficiaries.
” The Fund has enough money required to pay all savers who are eligible for 20% mid – term including 50 % for people with disabilities”, he said.
Mr Byarugaba told participants at the annual seminar for the Institute of Certified Public Accountants that records indicate that 113,000 savers are eligible for midterm access, up from 93,000 over three months ago.
He said NSSF will have to pay Sh1 trillion if all those who are eligible for midterm access turn up at the fund.
NSSF currently has two million contributors and over Sh15 trillion in assets, five trillion shillings is held in equities and real estate investments..
“The fund will also have to set aside 900 billion to pay benefits of close to 26,000 savers who will retire in this financial year 2021/2022”, he said.
The news of the signing of the NSSF Act into law was received with warm welcome. All the Social Media Labour .platforms especially whatsapp was full of praises for Workers Members of Parliament Hon. Charles Bakkabulindi, Hon. Margaret Rwabushaija Namubiru, Hon. Arinaitwe Rwakajara, Hon Abdulhu Byakatonda and Female Workers MP Hon. Agnes Kunihira, for a job well accomplished..
They also appreciated Bubulo West MP, also NOTU Secretary General Hon Peter Werikhe Christopher, Kabweri MP Hon. Stephen Mugole and former workers MP Hon. Dr Sam Lyomoki.
Trade unionists under their national Centres National Organization of Trade Unions (NOTU) and Central Organization of Free Trade Unions (COFTU) congratulated themselves for the milestone.
NOTU Chairman General Usher Wilson Owere thanked all stakeholders for the success and assured workers that the Minimum wage bill would be coming soon for discussion.
COFTU Chairman General Mr John Oketcho said it had been a long struggle for the workers but added that the hard – earner savings need to be put to proper use.
Female Workers MP, Hon Agnes Kunihira who was Vice Chairperson on Gender and Labour committee spoke on behalf of the MPS and thanked trade unionists for their contributions. She said as legislators they would continue to advocate for harmonization of laws that directly aim at improving the welfare of the workers in the country■
