RICHARD BYARUGABA’S LETTER TO NSSF MEMBERS: NSSF supports mid-term benefits to members We feel your pain and understand your outcry; the Fund remains committed to you, our member and will never tire from promoting and protecting your interests, NSSF Managing Director, Richard Byarugaba, tells workers in a direct letter to the members. He assures members that his initial letter to the Finance Minister that was leaked in the media did not mean that the Fund did not care about the workers, but rather was meant to give the minister an honest analysis of the economic implications of the proposal to pay out an unplanned 20% of the Fund to its members so as to facilitate the process of making the right decisions that need to be made. In the letter, he passionately urges members to join NSSF’s appeal to the MPs to pass the NSSF Amendment Bill that is before the house- which bill amongst many other benefits, provides for mid-term benefits to members during their working life that cover short-term to long-term needs such as unemployment/income replacement, education, medical and housing. Here below, we reproduce the letter in verbatim

Dear Esteemed Member,

The global outbreak of COVID-19 has disrupted all economies around the world. The rapid spread of the virus has posed massive health, economic and social challenges to everyone.

In order to limit the transmission of the disease, our leaders implemented measures including the complete lock down of certain parts of the economy. These measures have helped Uganda to avoid the deadly human toll seen in other countries. However, the unavoidable disruption to economic activities has raised unemployment levels in recent months. Consequently, we have witnessed a heightened level of stress among our members that have lost means of their livelihood.

This has brought to the forefront the role of NSSF to its many members. Understandably, some politicians and sections of the general public have been calling for the Fund to pay out a portion of accumulated contributions to its members.

We feel your pain and understand your outcry.  

Following this outcry, we shared with our line Minister our understanding of the worst case scenario of the economic implications of the proposal to pay out an unplanned 20% of the Fund to its members. We owed it to the Minister, our members and all Ugandans to be honest in the analysis to facilitate the process of making the right decisions that need to be made.

Understandably, this analysis may have given a wrong impression that NSSF does not in any way support mid-term benefits.

That is far from the truth. In the final paragraph of the letter to the Minister, we reiterated our support for planned mid-term benefits that are embedded within the NSSF Amendment Bill before Parliament.

We must clarify that the current legislation, NSSF Act Cap 222, that governs the Fund’s operations does not provide for mid-term benefits and regrettably has limited our ability to offer you new benefits.

Before the outbreak of the COVID-19 pandemic, together with various stakeholders especially the Trade Unions, the Fund strongly supported amendments to the NSSF Act which among other changes provides for additional benefits to the existing age benefits, invalidity benefit and survivors benefit.

The proposed amendments are currently before Parliament. The purpose of the additional benefits is not only to provide a degree of income security when faced with life’s contingencies such as todays’ pandemic but also safeguard the retirement goals of our members.

Once this bill is passed into law, the Fund will be able to do the following, among others:

1. Extend social security coverage to more Ugandans.
2. Improve the adequacy or value of benefits to our members.
3. Provide mid-term benefits to members during their working life that cover short-term to long-term needs such as unemployment/income replacement, education, medical and housing.

We, therefore, appeal to the Parliament of Uganda to fast track the NSSF Amendment Bill. We also encourage you, our member, through your MP to join us in calling upon the August House to urgently pass this law.

The Fund remains committed to you, our member and will never tire from promoting and protecting your interests.

Yours Sincerely,

Richard Byarugaba

MANAGING DIRECTOR

NATIONAL SOCIAL SECURITY FUND