President Yoweri Museveni (Museveni) has assented to the NSSF (Amendment) Act, 2021.
By assenting the Bill into law/Act, it means that workers who have saved for over 10 years and have reached 45 years of age are allowed 20% midterm access to their NSSF savings.
Sections of members of parliament commended the President for signing the Act and have asked the Minister of Gender, Labour and Social Development to speed up regulations that will outline the terms and conditions on how savers will access their NSSF savings.
The new law under section 13A (7) further grants the Minister Powers to prescribe by regulations and in consultation with the Board, the procedure for making voluntary contributions and benefits.
Bunya South MP (Mayuge District) Iddi Isabirye says the savers were badly hit during the two- year prolonged COVID-19 lockdown, noting that the 20% mid-term access is timely.
Makindye Sabagabo Municipality MP, David Serukenya says he is happy with the signing of the NSSF Act into Law, saying it has been long overdue
One of the Workers Member of Parliament ,Dr Byakatonda Abdulhu has asked all those in the informal sector to start saving their money with the NSSF.
He has also asked them to stop saving money under beds, Tins and underground .
He says NSSF Law also provides a tough deterrent penalty to employers who deduct a voluntary contribution and fail to remit to the fund.
Recently, Richard Byarugaba, the Managing Director of National Social Security Fund said the fund will have to ring-fence One Trillion Shillings to pay mid-term access.
Speaking at the annual seminar for the Institute of Certified Public Accountants in Entebbe in early December 2021, Byaruhanga said that the latest figures show that 113,000 savers are eligible for midterm access, up from 93,000 three months ago.
Byarugaba said NSSF will have to pay shillings one trillion if all those who are eligible for midterm access turn up at the fund. NSSF currently has two million contributors and over shillings 15 trillion in assets.
However, Five Trillion Shillings is held in equities and real estate, which Byarugaba said cannot be liquidated. He added 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 900 Billion Shillings to pay benefits of close to 26,000 savers who will retire in this financial year 2021/2022.