Support NSSF Proposals
Sep 12, 2010
THE National Social Security Fund Board has endorsed some proposed amendments to the NSSF Act, which would see members reaping benefits from their money.
THE National Social Security Fund Board has endorsed some proposed amendments to the NSSF Act, which would see members reaping benefits from their money.
According to Board member Arinaitwe Katambuka, if the amendments are endorsed by Cabinet and Parliament, members could use their savings as collateral to acquire commercial loans.
Besides, contributors would be able to access their money, when they clock 45 years instead of the current 55 years.
Another proposal is that a member who has saved with NSSF for at least 10 years would be able to get 10% of the savings incase of illness or accident.
This is a positive step and good news for the members who have been unfairly treated under the current NSSF Act 1985. The current provisions are so restrictive and have created dissatisfaction among the members. The interest rate is low and does not take into account the inflation rates.
Contributors have also been demanding for a wide range of benefits including unemployment and health insurance benefits.
Right now, some Ugandans do not see the need for social security and pensions as a savings and investment vehicle.
This is because NSSF has been dogged by poor administration and decision making which has led to inviable investments and corruption.
The current provisions have not provided good returns and are unsustainable with the demographic changes.
Ugandans want to use their social security contributions on tangible investments. If the members invested their monies saved in NSSF in say real estate, they would get a better return on investment.
These reforms are vital because they will unlock the funds and ensure members contributions are invested in productive ventures. Cabinet and Parliament should accept these changes as they will spur private sector growth.
According to Board member Arinaitwe Katambuka, if the amendments are endorsed by Cabinet and Parliament, members could use their savings as collateral to acquire commercial loans.
Besides, contributors would be able to access their money, when they clock 45 years instead of the current 55 years.
Another proposal is that a member who has saved with NSSF for at least 10 years would be able to get 10% of the savings incase of illness or accident.
This is a positive step and good news for the members who have been unfairly treated under the current NSSF Act 1985. The current provisions are so restrictive and have created dissatisfaction among the members. The interest rate is low and does not take into account the inflation rates.
Contributors have also been demanding for a wide range of benefits including unemployment and health insurance benefits.
Right now, some Ugandans do not see the need for social security and pensions as a savings and investment vehicle.
This is because NSSF has been dogged by poor administration and decision making which has led to inviable investments and corruption.
The current provisions have not provided good returns and are unsustainable with the demographic changes.
Ugandans want to use their social security contributions on tangible investments. If the members invested their monies saved in NSSF in say real estate, they would get a better return on investment.
These reforms are vital because they will unlock the funds and ensure members contributions are invested in productive ventures. Cabinet and Parliament should accept these changes as they will spur private sector growth.