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NSSF midterm: Half of eligible savers apply
Some of the people who thronged National Social Security Fund offices at Workers House in Kampala to apply for access of mid term benefits of 20 percent of their savings, on March 7. Photo/abubaker lubowa
What you need to know:
- More beneficiaries have applied manually as opposed to using the mobile and online platforms.
More than half of the total savers eligible for the National Social Security Fund (NSSF) midterm benefits have applied for their 20 percent, three months since the exercise began.
Data shared by the NSSF managing director, Mr Richard Byaraugaba, on Monday indicates that 21,278 applications had been received.
A total of 41,174 contributors who are 45 years and above and have made 120 contributions are eligible to receive mid term funds.
NSSF started disbursing the funds on March 7.
Of the total applications, 20,156 claimants have been paid Shs414.1b while 686 are awaiting payment of Shs16.1b.
Also, 173 applications were cancelled while 263 were not yet in the system for payment.
More beneficiaries have applied manually as opposed to using the mobile and online platforms.
The current eligible savers’ 20 percent benefits add up to Shs793 billion.
According to NSSF, the number and funds required is expected to increase as more savers tick the eligibility criteria.
Consequently, the Fund earmarked Shs1 trillion for payment of the midterm benefits under Section 20(A) of the NSSF Amendment Act 2021, which grants members who are 45 years and have contributed for 10 years access to 20 percent of their accrued benefits.
A person with disability who is 40 years and has contributed for 10 years can access half of their benefits.
But the trend now reveals those seeking the cash have significantly dropped, compared to the early days when their thousands of applications were received daily. On average, only 50 applications are received daily, Mr Byarugaba revealed
On the data chat of May 23, only 46 applications came in that day.
Amendment:
During Labour Day celebrations at Kololo ceremonial grounds, the Minister for Gender Labour and Social Development, Ms Betty Amongi, said they had agreed to amend the NSSF Act to cater for the more than 85,000 inconsistent and inactive members who had been in the Fund for 10 years but did not have 120 contributions as prescribed by the statutory instrument.
Minister Amongi revealed the new Bill was ready, awaiting presentation to Cabinet.
Yesterday, the ministry Permanent Secretary, Mr Aggrey Kibenge, without divulging details said the processes were on course.
