Workers saving with National Social Security Fund (NSSF) will soon have mid-term access to their savings after President Yoweri Kaguta Tibuhaburwa Museveni agreed to the proposals in the NSSF Amendment Bill.
Museveni held a meeting with workers representatives, NSSF management, Ministers of Finance and that of Gender, Labour and Social development on August 04.
“I have agreed in principle that workers that qualify, access 20% of their savings, mid-term,” said Museveni.
“The National Social Security Fund (NSSF) bill will provide relief to members of NSSF (that qualify), before they reach the age previously prescribed by the law.”
The president has now ordered the Minister for Gender, Labour and Social Development Betty Amongi to make changes to the bill.
Once the changes are included, Museveni is expected to consent to the bill.
But Museveni had several complaints even as he agreed to the bill.
He complained that the Fund would cease to be viable if withdrawals were made through midterm access.
“The fear was if you do that, you degrade huge money put together and which the fund is using to invest instead of going abroad to beg. Also a worker may end up getting less by 30 million at his retirement,” he said.
Records presented by NSSF managing director Richard Byarugaba indicate that the fund collects Shs125 billion monthly, translating in Shs1.5tn annually. Shs900bn of this amount goes into paying benefits.
But Minister Amongi assured the meeting midterm access would not deplete the fund.
“We agreed to schedule it. We don’t pay all at a go but about 20% of members in a certain period and have also have a criteria like age and amount saved,” she said.
But Museveni appeared unconvinced. He used classic literature and biblical texts to cast doubts on midterm access, and to suggest he had bowed to pressure.
“You remember Shakespeare’s play The Merchant of Venice? Shylock with his my pound of flesh whether you die or what! For the NRM not to be that Shylock and since these people think this is the solution, let us go ahead,” said the president.
“If it doesn’t work out we shall see, learn together instead of being like shylock.
He went on: “You go, I wash my hands. I have become Pontious Pilate!”
What this means is that if one had been saving with NSSF for 10 years and is aged 45, they can access 20 per cent of their savings at a debt to be included in the statutory instrument to be issued after the president has signed the NSSF Amendment Bill into law.
Additional reporting: Courtesy
