The Independent Uganda: You get the Truth we Pay the Price
@PAhumuza
Kampala, Uganda | THE INDEPENDENT | Richard Byarugaba, the Managing Director of National Social Security Fund (NSSF) says the fund will have to set aside Sh1 trillion if the President assents to the NSSF (Amendment) Bill, 2021. Parliament passed the Bill last month.
Among the key provisions in the bill is it allows individuals who are aged 45 years and have saved for at least ten years, and those living with disabilities, to access 20 percent of their savings.
Speaking at the annual seminar for the Institute of Certified Public Accountants in Entebbe on Friday, Byaruhanga said that the latest figures show that 113,000 savers are eligible for midterm access, up from 93,000 three months ago.
Byarugaba says NSSF will have to pay Sh1 trillion if all those who are eligible for midterm access turn up at the fund. NSSF currently has two million contributors and over Sh15 trillion in assets.
However, Five Trillion Shillings is held in equities and real estate, which Byarugaba says cannot be liquidated. He adds that the fund would have to liquidate some of its fixed-income assets like bonds to cater for midterm access payments.
The fund will also have to set aside Sh 900 billion to pay benefits of close to 26,000 savers who will retire in this financial year 2021/2022.
Byarugaba added that the fund will organize financial literacy discussions with those eligible for midterm access.
Constant Mayende Othieno, the President of CPA, has praised Byarugaba for transforming NSSF since 2010 and hopes other accountants and managers will emulate him.
Walter Yorac Nono, the Director Internal Audit at Makerere University advised other savers who are eligible for midterm access to their benefits to consider other options.
NSSF leadership shouldn’t worry about the number of eligible Beneficiaries coz not all of them will turn up at the same time. Secondly, not all savers are having financial constraints at the moment. There are eligible savers who are currently employed, then other are having booming businesses. So just role out the program & see how it pens out.
The biggest Christmas Gift President Museveni could give the savers would have been assenting to the NSSF Bill. Our Houses & Assets are being taken over & Sold by Banks & other Financial Institutions. Please, if my home goes & I keep the money to eat at old age when I am on the streets is utterly meaningless.
Rose
Please NSSF management , hurry and assist those whose have lost their jobs cos they are in dying need of the money .I hope u know them according to the system u have .With honor I beg the president to help sign the bill to save his people
We need our moneys
am suggesting that we also who have saved for more than 10 year and having more than 20,000,000 millions (twenty millions)should also be considered on mid term access as we also surfed in this kind of situation. thank u.