Appearing before the Gender Committee of Parliament that is considering the issue of midterm access, the minister noted that while there have been concerns that the funds will have to liquidate some of its assets to finance Midterm access their analysis indicates that this will not be the case.
There are adequate funds under the National Social Security Fund (NSSF) to pay midterm access, the Finance State
Minister in Charge of Planning, Henry Musasizi has revealed.
Appearing before the Gender Committee of Parliament that is considering the
issue of midterm access, the minister noted
that while there have been concerns that the funds will have to liquidate some of
its assets to
finance Midterm access their
analysis indicates that this will not be the case.
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Musasizi however says that the access of the fund
should be regulated by a statutory instrument issued by the Minister, adding that access can range from 0 % to 20 % depending on
the availability of the funds to protect the fund.
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The committee chairperson Flavia Kabahenda tasked the
Minister to explain several
levies imposed on the depositor’s
savings. She highlighted the
0.25 % levy amounting to Shillings 6
billion, which is derived from
the 15 per cent
levy on each contributor’s savings.
She also questioned why some people who lost
jobs are not catered for. “How do you calculate the 10years that someone
has saved? Someone might have lost a job, are you going to consider this person who
lost a job and is above 45years, I want a rationale on how you calculate the 10years?” Kabahenda questioned.
Musasizi noted that the levies
are not static and can be reduced. He says several countries including Kenya
were charging the levy. On who should manage the fund, Musasizi said that since the Ministry of Finance is an
expert on money, they should be allowed to manage the fund.
When the committee chair asked if it is the Ministry of
Finance that represents
Uganda when it comes to international engagements with the International Labor
Musasizi said that
he only knows the fund is managed by finance.
Musasizi also said that it does not matter how much one has in savings
as long as one has not saved for 10 years they do not qualify. Bubulo
West MP, Peter
Werikhe says the Government
should revisit the levy on workers
savings through the Uganda Retirements Benefits Regulatory Authority (URBRA).
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Margaret Rwabushaija, the Worker’s MP raised concern in regards to giving voting rights to the Managing
Director of NSSF, saying this will
make him untouchable. The last parliament
approved a bill allowing depositors above the age of 45 who have saved for ten
years access to access at least 20 per
cent of their savings.
However, the president
returned the bill to
Parliament asking them to consider among other things revising the access for
only Ugandans who are 45 years of age and have saved for 10 years.