Museveni Finally Signs NSSF Mid-Term Access Bill, Savers To Access Funds In Two Months
By Uganda Online Media
President Yoweri Museveni has appointed Maj Tom Magambo who has been in the Internal Security Organisations(ISO) as the new police Criminal Investigations Director.
“President Museveni has promoted Private Tom Magambo to the rank of Major and appointed him Director Criminal Investigations of the Uganda Police Force,” the acting UPDF spokesperson, Lt Col Ronald Kakurungu said in a statement.
Kampala: President Museveni has finally assented to the National Social Security Fund(NSSF) Amendment Act, 2021 for midterm access to allow eligible savers receive their savings.
The bill was first tabled in the ninth parliament, after finding middle ground on the contentious clauses. The Members of Parliament want those eligible to receive midterm access to their savings as soon as it’s possible.
According to the State Minister of Finance in charge of Planning Amos Lugolobi, Mid-term access by some savers of 20 percent of their pensions will start two months after gazetting the enabling law and agreeing on other terms and conditions.
The NSSF managing director Richard Byarugaba revealed that at least 899,024 Ugandans are eligible for mid-term access adding that they are getting set to effect pay-outs to savers who are 45 years and older, and who have saved for at least for a period of ten years.
“We have 60 days to come up with a statutory instrument that will operationalize the law,
“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,” Byarugaba said.
The Fund is now required to look for a projected UGX 900 billion to pay the 20 percent to the eligible savers.
Tap Here To Read Full Details On NSSF Bill
In 2019, the government tabled the NSSF Amendment Bill seeking to expand social security coverage, enhance the spectrum of benefits available to workers and improve governance of the Fund. The Bill was passed by parliament in February 2021.
In August, President Yoweri Museveni agreed to the workers’ mid-term access to their savings in the National Social Security fund and directed the Minister for Gender, Labour and Social Development Betty Amongi to make changes to the bill and return it for consent.
According to section 2 of the law, 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.”
Additionally, Section 20A (1) states that ”a member who has made a 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”.
Meanwhile, Persons with Disabilities (PWDs) aged 40 years who have saved with the Fund for more than 10 years can have access to 50 percent of their savings.