Breaking

Gov’t, Workers Reach Consensus on Dual Management of NSSF Funds

Government, workers and the Gender committee Labor and Social Development of Parliament have come to a consensus on the dual management of the National Social Security (NSSF) funds.
NSSF Pensions tower

Audio 1

The government, workers, and the Gender committee of Parliament have agreed on the dual management of the National Social Security (NSSF) funds.

The financial aspects of NSSF will be managed by the Ministry of Finance Planning and Economic Development, while the social aspects will be managed by the Ministry of Gender Labor and Social Development. This was disclosed by the Minister of Gender Betty Amongi during Tuesday’s plenary where members were considering the NSSF amendment bill 2021.

The bill was processed by the Gender Labour and Social Development Committee of Parliament. The bill, which seeks to allow Ugandans who are 45 years old and have saved for 10 years to access 20 percent of their savings, was passed by the 10th Parliament. 

However, it was never assented to by the President and declared as business that had lapsed by the 11th Parliament. The bill also sought to streamline the supervision of the 15 trillion funds from the Ministry of Gender to the Ministry of Finance.

Although the President, workers, and the Gender committee of Parliament had agreed to the midterm access, the matter of who should supervise the funds remained contentious with Government making a strong case for the funds to be managed by Finance, while workers said the money was for social protection and not investments and for the stability of the economy.

Amongi said that some contentious issues had been resolved between Government and the workers.   Among's statement came after the Speaker of Parliament Jacob Oulanyah said that the contentious issues had been resolved, and therefore Parliament should go straight into processing the bill and not wasting time.

Amongi said that now they have agreed that the Ministry of Finance will handle the financial aspects of the fund, while Gender will handle the social and gender issues.  She says that at an appropriate time, an amendment will be moved by hand to handle these matters.


 //Cue in: “The sticky issue…

Cue out:...move those amendments"//

The Government, workers, and Gender committee have also agreed to scrap off the 0.0256% equivalent to 6 billion shillings in annual levy by Uganda Retirements Benefits Regulatory Authority (URBRA) on workers savings held by the National Social Security Fund -NSSF.

URBRA which is mandated to regulate and supervise the establishment, management, and operation of retirement benefits schemes in Uganda levies a compulsory annual fee paid by NSSF and other retirement benefits schemes of up to 0.0256 % of the Total Asset Value in the statement of financial position. 

According to URBRA, this levy is charged for the Authority to be independent and effectively regulate the sector, with a view that over the longer term the Authority should be able to finance its operations.  

Parliament is expected to pass the NSSF bill this week allowing the midterm access ending months of waiting among qualified beneficiaries. The act will come into force within 60 days of the publication on the gazette.    

Images 1

Keywords

Entities