Social Security Fund (NSSF) has said that it has no money available for lump sum payments if parliament
passes the NSSF Amendment Bill.
This was disclosed by the fund’s Managing Director Richard Byarugaba on
Thursday while meeting Members of Parliament on the Gender, Labour and Social
Last month, the
Speaker of Parliament, Jacob Oulanyah gave the committee 10 days to scrutinize
the National Social Security fund -NSSF Amendment Bill 2021.
parliament passed the NSSF bill allowing for midterm access by savers above 45
years or at least those who have saved for 10 years. However, the president
didn’t assent to the bill until the expiry of the 10th parliament. He returned
the bill to the speaker, saying parliament needs to amend the commencement date
of the Act so that it comes into force on the date of its publication in the
He also noted that only people above 45 years old and who have saved for over
10 years can access 20 per cent of their savings, saying anything else would be
unsustainable for the fund. The president also disagreed with the proposal
in the bill to allow Persons living with disabilities to access up to 75 per
cent of their savings.
told the MPs that the fund is unable to pay members because all of their money
is invested. He said that this year they were planning to pay 932 billion
shillings to its members, but if the bill is passed, they will need to pay 1.8
trillion shillings for only this year.
He said that
they may need to pay members in a staggered manner prioritizing those in urgent
need of the money.
//Cue in: “That would mean…
Byarugaba NSSF currently has investments in the East African Community
including money lent to the government in bonds.
that of NSSF’s total Asset value of 15.6 trillion shillings, 2.7 trillion is
invested in the Kenyan bonds, 1.4 trillion in Tanzania Bonds, 7.6 trillion in
Uganda and 28 billion with the Rwandan government.
Parliament questioned if NSSF was in reality a social security fund. They
argued that members are struggling to access their savings.
in: “Is NSSF a…
Cue out:…be answering that”//
Kalule the Woman MP Kassanda District tasked the officials to explain why they
do not have enough money and yet members save with the fund every month.
//Cue in:” Comment that you…
out:…it is required”//
Muhindo the Bukonzo East MP questioned the rationale of the fund giving money
to the members when they are incapable of utilizing it especially when they
have died or are old.
//Cue in: “Probably he has…
Asiimwe, the Woman MP Masindi district says an assessment should be carried out
on how many people want to access their money.
Mayanja the MP Nakaseke South said Ugandans are in distress and should access
in: “But we need…
Cue out:…certain about that”//
proposals in the bill includes employees making additional payments over and
above their mandatory contribution, individual contribution to the fund and the
NSSF Board making investment decisions instead of hiring experts.