Richard Byarugaba urges MPs to fast tract the NSSF Amendment Bill

 

By Esther Awori

National Social Security Fund (NSSF) Managing Director, Richard Byarugaba has urged Members of Parliament to expeditiously pass the NSSF Amendment Act that is before the floor of parliament.

He said the current Act restricts the number of those to join the saving scheme. Byarugaba observed that only 2.5 million Ugandans were saving with NSSF. “If our MPs can pass the Amended Act, we shall have the numbers grow for the better since even those in the informal sector, who are the majority will be eligible to join,” he said.

The remarks he made during the 7^th NSSF annual General meeting held at the Kampala Serena Conference center on Friday was re-echoed by the NSSF Board Patrick Kaberenge.

Kaberenge especially highlighted the NSSF Act cap 222 that seeks to preserve NSSF as the mandatory scheme for workers in the private sector.

Finance Minister, Hon. Matia Kasaijja who was chief guest announced an 11 percent interest to be paid to the members for the year 2018/19

“This new interest rate will be calculated and credited on the balance outstanding on the members’ accounts as at 1st July 2018, in accordance with provisions of the NSSF Act,” said Kasaijja.

Though this year’s interest share is a 11 per cent is a drop compared to last years 15 percent, Kasaijja described it as a rate still higher compared to the current inflation rate.

“This rate I am announcing today is higher than the 6.7 per cent 10-year inflation rate which means that your money still holds much value” he said.

“The Fund size has grown by 13 per cent and contributions from workers increased by 17 per cent from Shs 1.049 Trillion to Shs 1.208 Trillion. This is quite impressive. We shall do everything we need to do to help the fund grow,” Kasaijja noted.

Kasaija said the Uganda Economy has recovered from the shocks of 2016/17, growing at over six per cent last financial year. “This year we even project a better economic growth,” he said

The amount of money paid in benefits to qualifying members, according to the fund, increased by 25 percent from Shs 360 billion in 2017/2018 to Shs 450 billion in 2018/2019 and the average benefits turn-around-time 2018/19 remained flat at 8 days.