The National Organisation for Trade Unions(NOTU) has condemned Matia Kasaija, the minister of Finance for writing to President Museveni urging him not to sign National Social Security Fund (NSSF) bill into law.
The bill recently passed by Parliament seeks to allow contributors of the fund who are aged 45 years and above and have saved with the fund for at least 10 years midterm access of 20% of their accrued benefits.
However, Kasaija in his recent letter to the President said allowing savers midterm access to their savings is bad for the fund something which has caused an alarm among workers.
Usher Wilson Owere ,the chairman general of NOTU said they are planning to call a general council meeting to advise President Museveni on why he should sign the NSSF Amendment Bill into law.
“We are going to give him (the president) facts and figures so that he should not allow the minister to [mislead] him,”he said.
The union accused the minister of playing double standards arguing that he was in parliament when the bill was discussed and passed.
Parliament amended section 24 of the existing Act by inserting Section 24a, which allows workers mid-term access to their savings at 45 years or older.
The Act is awaiting presidential assent to become law.
Workers who have saved with the fund for 10 years, will be able to access up to 20% of their savings.
The decision to allow members access part of this money came at a time when the Covid-19 pandemic had wreaked havoc on peoples’ income, making it difficult for others to contribute to the fund.
Of the 2,000,000 Ugandans who regularly save with the fund, 100,000 dropped off last year because their employers were either going through financial distress or had closed business altogether as a result of the Covid-19 pandemic.