By Our Reporter
The National Social Security Fund (NSSF) could soon allow members midterm access to their savings. This after President Yoweri Museveni gave a green light to changes to the NSSF bill.
On Wednesday, the President agreed to the workers’ mid-term access to their savings in NSSF and directed the Minister for Gender, Labour and Social Development Betty Amongi to make changes to the bill and return it for consent.
However, NSSF Managing Director Richard Byarugaba has clarified that members will have midterm access only after the NSSF Amendment Bill 2019 has been enacted.
“The Fund has received several inquiries following the President’s pronouncement on the midterm access clause 24 A (2) of the NSSF Amendment Bill 2019, to allow members who are 45 years and above, and have contributed to the Fund for 10 years to access up to 20% of their accrued benefits,” Byarugaba said in a statement.
“The Fund advises its members that this announcement does not now mean that the NSSF Amendment Bill has been enacted into law. Like all other bills, the NSSF Amendment Bill (2019) will be returned to Parliament by the President for further processing.” He added.
“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 then access their midterm benefits.” He concluded.
Every month, institutions deduct 5% of employees’ salaries as contributions to NSSF, the employers top it up with 10 percent while NSSF earns them 12%.
