Preliminary reports from Parliament, indicate that MPs on the Gender, Labour and Social Development and the Finance, Planning and Economic Development committees have agreed to a revision in the current NSSF Amendment Bill that allows qualifying NSSF Members to access up to 20% of their savings.
To qualify, for midterm access, a member will need to have saved for more than 15 years and be below 45 years of Age or between 45 and 55 years, but has saved for more than 10 years.
“It is a proposal we have built consensus on,” Hon Musaasizi Henry, the Chairman of the Finance, Planning and Economic Development committee told this reporter on phone.
Although this may not meet the expectations of those who have been clamouring for their NSSF Savings to fend off Covid-19 related job losses, this may come as a win-win as it may provide some welcome relief.
A recent United Nations Capital Development Fund (UNCDF) and Makerere University Study predicts 100,000 formal sector jobs could be lost setting off a ripple that could see up to 4.4 million jobs shaken in the informal sector. Businesses want government to end the lockdown and institute a more formalised business recovery stimulus package. 62.3 percent of Ugandan business, according to the report are considering or have already started cutting jobs as a result of Covid-19.
With this harmonised position, according to sources in Parliament, one more hurdle remains to be jumped and that is under which Ministry should NSSF be placed. The Gender Committee is reportedly in favour Ministry of Gender while the Finance Committee is pro-Ministry of Finance.
If this hurdle too can be jumped, the Bill could be presented to parliament as early as July when the next session of Parliament opens and possibly be passed by end of August, at the latest.
Deal Makers: Meet Deloitte Advisors Behind Absa’s Acquisition of StanChart’s Wealth and Retail Business in Uganda“We are still debating but we shall agree on Tuesday,” Musaasizi affirmed to this reporter.
Last week, in an impassioned letter to members, NSSF Managing Director, Richard Byarugaba said that NSSF was ready and willing to pay qualifying members, provided a supporting law- the NSSF Amendment Bill in Parliament was passed.
“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,” Byarugaba told members.
“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: extend social security coverage to more Ugandans, improve the adequacy or value of benefits to our members, 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,” he said urging members to appeal to the Parliament of Uganda to fast track the NSSF Amendment Bill.
