President Yoweri Kaguta Museveni on Tuesday assented to the National Social Security Fund (NSSF) amendment Bill 2021.
This came a month after Parliament on November 24, 2021, passed the Bill after considering the President’s proposed amendments and agreeing on the major issues of contention.
In the same month, Members of Parliament gave the Minister of Gender, Labour and Social Development Betty Amongi a maximum of 60 days (two months) to issue the statutory instrument that would stipulate and spell out the regulations and the way the money would be paid out to eligible members.
Therefore since the bill was assented to by the President, Minister Amongi in a press conference held at Uganda Media Center on Wednesday issued guidelines stipulating when the new law will be put into practice and who the beneficiaries of the mid-term access are.
Amongi noted that the provision regarding midterm access by qualifying members of the Fund shall come into effect after the issue of the statutory instrument that will guide on the terms and conditions, and procedures for accessing benefits is worked upon.
The minister is required by the Act to issue the instrument and lay the same before Parliament for information within 60 days after publication of the Act in the Uganda Gazette.
“For the avoidance of doubt, only the following categories of members will be eligible for mid-term access to benefits and in the terms stated below; a member who is forty-five years of age and above and who 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 percent of his or her accrued benefits. And a member who is a person with a disability, is forty 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 percent of his or her accrued benefits,” Amongi said.
She, however, advised the public not to focus on getting out the money from the Fund but also to use other new provisions added in the Act which provide immense opportunities to the Fund, the workers, and the entire country. For instance, expansion of the basic social security coverage in Uganda whereby every worker is now eligible to save with the Fund.
Also, every employer, as defined in the Act, is now obliged to contribute to the NSSF for their workers, irrespective of the number employed, thirdly, every worker can voluntarily save with the Fund, over and above the mandatory 15 percent contributions.
The act also provides enhancement of adequacy of social security benefits in that the NSSF Board of Directors now has the mandate to offer more social security benefits in accordance with Geneva Convention 102 on Social Security (Minimum Standards) such as enabling product innovation to address the needs of a young population.
“The Fund will have the mandate to innovate and introduce more products as required by its members. I urge all workers to embrace these opportunities, join the Fund and save for their retirement or a rainy day that we all experience in our lifetime,” she said.
The minister again assured the public that their fund is safe and beneficiaries will receive their money as soon as the instruments are issued. “I have also received assurances that the Fund is ready to implement the NSSF Amendment Act once the requisite procedures have been undertaken. My Ministry, as the supervising body of the Fund, will ensure that the Act is implemented to the letter.”
When everything is done, the Fund is expecting to pay out over Shs900bn given the current statistics indicate that 93,000 savers qualify as beneficiaries.
According to Richard Byarugaba, the NSSF managing director, after 60 days, the system will be ready and most of the procedures will be done online to avoid congestions at the branches.
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