Workers with HIV/AIDS to access NSSF savings earlier

By Fortunate Ahimbisibwe and Charles Bwogi

THE National Social Security Fund (NSSF) plans to allow people living with HIV/AIDS to access their money even when they have not reached the retirement age.

The managing director, David Jamwa, yesterday said this was part of the fund’s five-year strategic plan.

“It is one of our responsibilities to provide a medical insurance scheme to our members, but we shall begin with HIV/AIDS patients,” he said.

Currently, NSSF members can only access their benefits after reaching 55 years. It is estimated that over one million people are living with HIV/AIDS.

Jamwa told journalists that the fund had embarked on a new policy which would create a positive image of the fund.
“We are moving away from past mistakes and we have learnt a lot from them,” he said at Workers House in Kampala.

Jamwa also said the botched Nsimbe Housing project would be revitalised after a review.

“It would not be a good idea to pull out of the project after spending sh8.2b,” he stated. The project, meant to build 4,000 housing units, was a joint venture between embattled businessman Isabirye Mugoya and the NSSF.

Jamwa said the board and management were not opposed to the idea of turning the fund into a pension scheme.

“We are already moving towards that direction and we have requested the minister to give us a statutory instrument to this effect.”
He, however, said it was not proper for people to get their benefits at the age of 40.

“If such a decision was made, it would mean that more than 85% of our members would qualify for their benefits in four years.”

Jamwa also announced that the fund would increase the interest of the benefits to 12% over the next five years. The current interest rate is 7% on savings.

In spite of previous reports of a failed information technology system, Jamwa said a new system would be installed over the next six months.

“This will help us start processing the benefits within three weeks. It will also be easy for members to view their statements from time to time.”

The fund chief also decried the poor saving culture in the country.
“Ugandans only save 6%, behind Rwanda and Tanzania which stand at 29% and 24% respectively.”

He noted that of the 11 million working Ugandans, only 268,000 were covered by NSSF.

“On average Ugandans are saving sh19,833 per month, a situation that needs an immediate change if the country is to achieve any meaningful social protection for its people.”

The NSSF board chairman, Edward Gamua, said: “We have not allowed errors of the past to stifle our efforts.”