The National Social Security Fund has said workers will be allowed midterm access to their savings only after President Museveni assents to the NSSF Bill 2020.
The president on Wednesday finally cleared workers to have midterm access to their National Social Security Fund (NSSF) savings.
However, according to the NSSF Managing Director, Richard Byarugaba, workers should be a little patient to have access to their savings since the bill is not yet signed into law.
“The fund has received several inquiries following the president’s pronouncement on the midterm access clause 24 A(2) of the NSSF Amendment Bill 2020. The fund advises members that this pronouncement does not now mean that the bill has been enacted into law. Like all other bills, the NSSF Amendment Bill 2020 will be returned to parliament by the president for further processing,” Byarugaba said in a statement.
According to the NSSF Managing Director, members can only have midterm access to their savings after the bill has been enacted into law by the president who is yet to assent to it.
“The bill shall be enacted into law only after parliament has returned it to the president and he has assented to it. Upon its enactment, regulations to operationalize the midterm access clause will be developed and issued by the minister responsible for the fund, at which point members will then have access to their midterm benefits,” Byarugaba said.
He however noted that NSSF has no control over this process but noted the fund is committed to the speedy enactment of the bill and the implementation of the act.
President Museveni on Wednesday directed the Minister for Gender, Labour and Social Development Betty Amongi to return the bill to parliament so as to make changes to it and return it to him for consent.
Museveni noted that having cleared the midterm access if this does not work out, it would be a lesson learned together.
However, the president on Wednesday allayed any fears by NSSF noting that he was more concerned with destroying the viability of the fund.
“The fear was if you do that, you degrade huge money put together and which the fund is using to invest instead of going abroad to beg. Also, a worker may end up getting less by 30 million at his retirement,” he said.
According to the bill, contributors to NSSF who have clocked 45 or have saved for at least 10 years will now have access to 20% of their savings with NSSF.