MPs have finally approved the proposal in the National Social Security Fund Amendment Bill 2021 that will allow savers receive their mid-term access within two months. The Bill has been gathering dust in Parliament for almost three years.
In Clause 1 of the Bill, Government had proposed the Act to come into force upon publication in the Gazette, except Section 24a, on mid-term access that would come into force on a date to be appointed by the Minister by statutory instrument on the advice of the Board.
However, the Committee expressed concern over the failure by Government to provide a specified timeline to enable savers have interim access to their savings before attaining the age prescribed by law.
The Committee recommended to Parliament to have section 24A come into force within sixty days of the publication of the Act in the gazette.
However, the Leader of Opposition, Mathias Mpuuga had misgivings about two dates for the commencement dates for the bill, saying having the law come into effect on the same date would be critical at securing workers.
“I can understand the rider that offers the 60days period, but the rationale for me doesn’t hold. Partial implementation of the law can be problematic, can we get to understand why not have the law commence at a go so that we have more certainty?” remarked Mpuuga.
Flavia Kabahenda, Chairperson Gender Committee explained that the 60 days are for the minister to develop the statutory instrument, given it includes money and preparation on what to pay beneficiaries and how much should be prepared. The minister had requested for 90 days.
Speaker Oulanyah informed Parliament that there is nothing illegal about having one bill with different commencement dates.
“It isn’t unusual for a particular law to have commencement dates, it isn’t irregular to have different parts,” he said.
However, this too was protested by Nandala Mafabi (Budadiri West) saying that 24(a) that talks about midterm access clearly spells out who are the beneficiaries, there is no other regulation to be made because the people to qualify are stated in the law.
“There is no other regulations to be made in this respect because the people to qualify are stated in the law. The moment you say the minister will do this, we want the minister to go bring another which might be contrary and delay processes,” he said, adding: “The reason why this law came was basically employees to have access to midterm benefits. The date of commencement is the date the law is gazetted.”
He was backed by Cecilia Ogwal (Dokolo DWR) saying there is no new element that is going to come in the regulations to warrant two commencement dates.
However, the Minister of Gender, Labour and Social Development, Betty Amongi defended the proposal to have workers access their savings after 60 days from commencement of the date, saying the regulations to be drafted will give Government time to draft terms and conditions upon which savers that have attained 45days and been saving for 10years would get their money.
Jonathan Odur (Erute South) tasked the Minister to explain under what situation a saver who has been saving for 10years consecutively and has attained 45years can be denied access to their midterm savings.
Amongi said that the law is clear in its proposition, saying she doesn’t envisage that situation, but the 60days are required to put up a procedure.
Attorney General, Kiryowa Kiwanuka assured MPs that any statutory instrument which exceeds the principle law is null and void and it won’t happen under his watch.
The Gender Labour and Social Development Committee of Parliament recently approved the 20 percent midterm access for National Social Security Fund (NSSF) savers aged 45 and have saved for 10 years.
