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Thursday,July 18,2019 04:54 AM

NSSF cannot be a pension scheme!

By Vision Reporter

Added 23rd October 2001 03:00 AM

SIR—We would like to air out our views as regards the impending transformation of NSSF into a pension scheme.

SIR—We would like to air out our views as regards the impending transformation of NSSF into a pension scheme. We the workers are totally opposed to this move and will remain so. The ugly fact is that nobody in government or NSSF management has ever thought of consulting us who are the contributors and stakeholders to the Fund. We envisage this as a deliberate ploy by the Government to freeze the members funds for the following reasons: 1. Government wants to transfer its pensions arrears liability of over sh260b to us the workers. 2. If NSSF becomes a pension scheme, the benefits that would be paid to the relatives of the deceased will be forfeited to the Government. The only estate a low wage earner can leave for his children and spouse at the time of death is the NSSF accumulated balance. So why deny our children and spouse their rights to it? 3. The Government wants to abolish altogether the dismal 3% annual interest on our hard earned savings which is far below the inflation rate because there is no way a pensioner is entitled an interest. 4. A pensioner’s monthly earnings are so small that it can hardly meet the transport fare to and from Kampala say from Kitgum because the payments are centrally done. 5. The Government wants to grab and take absolute control of the Workers House and other NSSF investments plus all benefits accruing from these. We say NO to transformation of the Fund and recommend that: 1. The Government opens up competition in the social security sector by allowing other players on the field. 2. Increase the interest rate on savings to a figure slightly above the current inflation rate and make it monthly; now that big money will be realised from renting out the Workers House. 3. Make a provision to enable members who have contributed to the Fund for five years and above to draw 65% of accumulated balance on their accounts for the purpose of individual investment projects. 4. Make provision for members who lose jobs before attaining the mandatory age of 55 years to claim their money in full, to enable them live on their own in the business sector. Employees of the Uganda Trade & Industrial Enterprises, Mbale

NSSF cannot be a pension scheme!

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