By Our Reporter
The global outbreak of COVID-19 has disrupted all economies around the world.
This after different measures aimed at curbing its spread were implemented including a lock down which created massive economic and social challenges.
This has led sections of the general public to turn to the National Social Security Fund(NSSF) for relief, calling for a pay out of a portion of accumulated contributions to its members.
The NSSF managing Director Richard Byarugaba, in a letter to members, has said that the Fund is in support of the public call for mid term Benefits to members.
“We have witnessed a heightened level of stress among our members that have lost means of their livelihood. This has brought to the forefront the role of NSSF to its many members,” Richard Byarugaba says in the letter. “Understandably, some politicians and sections of the general public have been calling for the Fund to pay out a portion of accumulated contributions to its members. We feel your pain and understand your outcry.”
“Following this outcry, we shared with our line Minister our understanding of the worst-case scenario of the economic implications of the proposal to pay out an unplanned 20% of the Fund to its members. We owed it to the Minister, our members and all Ugandans to be honest in the analysis to facilitate the process of making the right decisions that need to be made.Understandably, this analysis may have given a wrong impression that NSSF does not in any way support mid-term benefits. That is far from the truth.” He added
“In the final paragraph of the letter to the Minister, we reiterated our support for planned mid-term benefits, that are embedded within the NSSF Amendment Bill before Parliament. We must clarify that the current legislation, NSSF Act Cap 222, that governs the Fund’s operations does not provide for mid-term benefits and regrettably has limited our ability to offer you new benefits.” He concluded.
Meanwhile, before the outbreak of the COVID-19 pandemic, the Fund together with various stakeholders especially the Trade Unions proposed amendments to the NSSF Act which among other changes provides for additional benefits to the existing age benefits, invalidity benefit and survivors benefit. The proposed amendments are currently before Parliament.