President Yoweri Museveni assented to the NSSF (Amendment) Bill, 2021, paving way for members who have reached 45 years and saved consistently for 10 years to access 20% of their savings.
The Minister of Gender, Labour and Social Development Betty Amongi today explained the steps that will be taken next ahead of implementing the NSSF (Amendment) Act, 2021.
According to her, the Act will come into force upon publication in the Uganda Gazette in the coming days.
She said she’ll inform the country as soon as this critical action has been implemented.
She said that the provision regarding midterm access to benefits by qualifying members of the Fund will come into effect after she has issued a statutory instrument that will guide on the terms and conditions and procedures for accessing benefits.
Amongi said she’s required by the Act to issue this instrument and lay the same before Parliament for information within 60 days after publication of the Act in the Uganda Gazette.
Her Ministry is in advanced stages of drafting Regulations and she’s confident that they will meet the timelines mentioned in the Act
The minister noted that she has also received assurances that the Fund is ready to implement the NSSF Amendment Act once the requisite procedures I have mentioned above have been undertaken. My Ministry, as the supervising body of the Fund, will ensure that the Act is implemented to the letter.
She said the following categories of members will be eligible for mid-term access to benefits and in the terms stated below:
A member who is 40 years of age and above and has made contributions to the fund for at least 10 years is eligible for mid-term access to his or her benefits of a sum not exceeding 20% of his or her accrued benefits.
A member who is a person with a disability, 40 years of age and above, and has made contributions to the fund for at least 10 years, is eligible for mid-term access, of a sum of 50% of his or her accrued benefits.
Lastly, the Act provides immense opportunities to the Fund, the workers, and the entire country.
For instance, to mention but a few:
Expansion of the basic social security coverage in Uganda;
Every worker is now eligible to save with the Fund
Every Employer, as defined in the Act, is now obliged to contribute to the NSSF for their workers, irrespective of the number employed
Every worker can voluntarily save with the Fund, over and above the mandatory 15% contributions
Enhancement of adequacy of social security benefits
The NSSF Board of Directors now has the mandate to offer more social security benefits in accordance with Geneva Convention 102 on Social Security (Minimum Standards)