Finally!! NSSF in support of mid-term Benefits to members
The global outbreak of COVID-19 has disrupted all economies around the world causing economic stagnancy. The rapid spread of the virus has posed massive health, economic and social challenges to everyone.
The leaders implemented measures including the complete lockdown of certain parts of the economy. These measures have helped Uganda to avoid the deadly human toll seen in other countries.
NSSF Uganda MD: Richard Byarugaba
However, the avoidance disruption to economic activities has raised unemployment levels in recent months. This has caused heightened levels of stress among members of NSSF which have lost means of their livelihood.
This has brought to the forefront the role of NSSF to it’s 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.
The NSSF said they the pain and understand the public outcry.
Following this outcry, NSSF shared with their line minister their undertaking 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,” NSSF MD said.
Understandably, this analysis may have given a wrong impression that NSSF does not in any way support mid-term benefits.
This is far from the truth. In the final paragraph of the letter to the minister, NSSF reiterated their support for planned mid-term benefits, that are embedded within the NSSF amendment Bill before parliament.
It must be clarified 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 their ability to offer new benefits to its members.
Before the outbreak of 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 today’s pandemic but also safeguard the retirement goals of our members.
Once the 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 their 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.
NSSF, therefore, appeal to the Parliament of Uganda to fast track the NSSF Amendment Bill.
“We encourage you, our member, through your MP to join us in calling upon the August House to urgently pass the law. The Fund remains committed to you, our member and we will never tire from promoting and protecting your interests,” NSSF MD Richard Byarugaba said.
