NSSF head offices in Kampala/courtesy photo
Patrick Isiagi Opolot, the Kachumbala County Member of Parliament has implored the boss of Uganda Retirement Benefits Regulatory Authority (URBRA) to convince the president not to assent to the recently passed National Social Security Fund-NSSF Amendment Bill 2019.
It comes a month after Parliament passed the controversial National Social Security Fund (NSSF) bill, which provides for midterm access to members.
The bill now awaits assent by President Yoweri Museveni before it becomes law.
According to the amendments, members who have clocked 45 years or have contributed to the fund for a period of ten years will be eligible to 20 percent of their savings.
However, Isiagi argues that the clauses allowing mid-term access were included in the bill due to populist demands that are detrimental to the prosperity of the fund.
Isiagi, who doubles as the Vice-Chairperson of the Budget Committee of Parliament was speaking in a meeting where the finance committee of Parliament was interfacing with URBRA officials led by the Chief Executive Officer, Martin Anthony Nsubuga.
He claimed that this kind of access creates uncertainty since the fund will need to keep funds lying idle to pay beneficiaries.
Isiagi beseeched Nsubuga to advise the president not to assent to the Bill.
The Koboko North MP Elias Asiku and the Apac Municipality MP Patrick Ochan asked Nsubuga to explain how the Authority will manage public expectations if the president refuses to assent to the bill.
Nsubuga agreed that the funds are invested in long term assets and accessing them has to come at a cost, saying there is a need for clear regulations on who will bear the cost.
He revealed that 76% of the funds are invested in government securities and 12% in equities.
He asserts that there is a need to clearly lay out regulations on how and when access to funds is approved. Nsubuga believes implementing the law as it is will be impossible.
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