Africa-Press – Uganda. Mid-term access by some savers of 20 percent of their pensions will start two months after gazetting the enabling law and agreeing other terms and conditions, the government announced yesterday.
This revelation came after State House confirmed that President Museveni on Monday assented to the long-awaited NSSF (Amendment) Act, 2021 passed by Parliament in November.
At least 899,024 Ugandans are eligible for mid-term access according to the National Social Security Fund (NSSF).
NSSF managing director Richard Byarugaba told Daily Monitor yesterday that they are getting set to effect pay-outs to savers who are 45 years and older, and who have saved for at least a decade.
“We have 60 days to come up with a statutory instrument that will operationalise it [the law],” he said.
“This is in the law under commencement. It states that ‘subject to section (2), this Act shall come into commencement upon publication in the Gazette,” he added.
Section 2 of the law states that the “Minister shall, in consultation with the board, by statutory instrument, commence section 20A (1) and 20A (2) within 60 days from the date of publication of this Act in the Gazette.”
Section 20A (1) states that a member who has made contribution to the Fund shall be allowed midterm access to his or her benefits accrued from the contribution, while Section 20A (2) states that a member who is 45 years and above and who has made contributions to the fund under section 7 for at least ten years, is eligible to midterm access to his or her benefits, a sum not exceeding 20 percent of his or her accrued benefits.
Still in the law, Persons with Disabilities (PWDs) who have saved with the Fund for more than 10 years can have access of up to 50 percent of their accrued savings.
This NSSF Bill was first passed by the 10th Parliament on February 17, 2021, before it was returned to the House by President Museveni and later re-tabled by the 11th Parliament after the lapse of business of the previous Parliament.
The National Organisation of Trade Unions (NOTU) chairman general, Mr Usher Wilson Owere, while commenting on the development yesterday, told this newspaper that he feels satisfied after the long fight to see workers have midterm access.
“That Bill is a very important law for the workers and it is historical. Our dream was to better the livelihood of workers by improving their lives using their own savings and it has come to pass,” he said.
“I am very excited; I think today I am the happiest man in the world after the President assented to that Bill,” he added.
Mr Owere said workers are going to get this money as soon as possible.
“The process that is going to take place is gazetting the law and I have asked the Ministry of Gender, Labour and Social Development to start working on the regulation as the process of gazetting the law goes on so that they can be ready at the same time,” he said.
He added: “After the regulation is in place, NSSF will start straightaway. NSSF is already upgrading their system to implement this because we have told them that this is their time to bring the workers very close to them and improve their public relations.”
Ms Betty Amongi, the minister of Gender, Labour and Social Development, told this newspaper that there is enough money to pay eligible savers who want to access part of their money.
Ms Amongi said they are still working on administrative procedures to follow for those who are eligible for midterm access for things to be done systematically.
“We now need to come up with procedure that a saver follows to access their money and how long they should take to get the payment,” she said.
“Maybe the saver will need to come with confirmation letter that they have been employed in a particular area (company or organisation), or the saver will just have to pick an application form, fill and get a stamp from their employer to access the money.”
The minister said the terms and conditions for accessing the money will need to have a consensus from the workers “because I can’t offer it unilaterally.”
“But since the workers have been eager, I think within the next 30 days, we would have concluded consultation, harmonisation and we issue the statutory instrument, gazette it so that workers get their money,” she said.
What some Ugandans say
Ms Dora Nalongo said on Facebook: “I think 20 percent should have been for everyone who has saved for 10 years.”
Ms Annet Ayamba said on Facebook: “Thank you my President and long live YKM, long live NRM.”
Mr Paul Odongo said on Facebook: “Now wait for the bureaucracy. You won’t access the money due to hectic clearances. Pay this, bring that, come back in August, the financial year has just ended, human resource is in a workshop….”
Henry Okiiso said on Twitter: “For this, processing may take another decade… I have told you.”
Another tweep who identifies himself as Douglas K, wrote: “What’s the essence of investing money when you are 50 years plus? 20 percent is nothing, it should be 50 percent or more.”
Vincent Kizza said on Twitter: “Too little, too late, courtesy of a detached government!”
Edman Munanura said on Twitter: “Now fast track the national insurance policy….let’s have insurance for all and bridge gaps in the health sector.”
Mr John Peter Ederu said on Facebook: “Good development, but let there be no tossing.”
Al-Kareem Sabiti wrote on Facebook: “The question is, is the money there, has it not been swindled?”
Muhammed Kizito said on Facebook: “It should have been 50 percent because 20 percent is too small. Which parameters did Parliament use to come up with 20 percent? NSSF told us that 60 percent of the savers are having below Shs5m. Imagine what 20 percent of Shs5m can do!”
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