What next before savers get NSSF cash

However, the passing of the Bill does not mean that savers can immediately get their money.

Before the pay-outs begin, there are legal requirements to be fulfilled and it is unclear how long these processes will take.

Parliament now has to send the Act for presidential assent. Whereas President Museveni has 30 days to make a decision on the law- whether to assent or return the Bill for reconsideration- upon receipt, there is no time limit on the period between when the Bill is passed and when the President receives it.

On September 21, Speaker Jacob Oulanyah suggested a revision of the parliamentary rules of procedure to purge this loophole.

“We can never determine when the President receives it yet the time starts running when we transmit. We should have a process that gives a clear timeline where it is given to the President and then the 30 days start running,” Mr Oulanyah said.

The Attorney General, Mr Kiryowa Kiwanuka, said Parliament must do its work to ensure that the President receives the Act as soon as possible.

“[The 30 days start] when he receives the Bill. As to when it will be taken to the President, that is a question to put to Parliament. But I know as of now the President has not received it,” he said.

In the case of the 2019 amendment, President Museveni returned the Bill to Parliament six months after it was passed as opposed to the constitutional provision. He had acknowledged receipt of the Bill in May.

Stakeholders, however, are optimistic that this time the President will sign it since his proposed amendments were considered and the major issues of contention agreed upon.

If and when he signs, the proposed law will be published in the gazette. At this point, the proposed law comes into force but savers will have to wait longer.

The Act states that the provision for members, who have both clocked 45 years and saved consistently for 10 years, will become operational upon the issuance of a statutory instrument by the Minister of Gender, Labour and Social Development, the supervisor of the Fund.

MPs have given the minister a maximum of 60 days (two months) to issue the statutory instrument that will stipulate and spell out the regulations and the way they are going to pay out this money.

Ms Betty Amongi, the minister of Gender, Labour and Social Development and originator of the law, said they are already working on the statutory instrument to ensure it is ready within the specified time period.

“Given that this includes money, calculations and preparation of what to pay to the beneficiaries, the minister is required to give the statutory instrument that will spell out the how, when, who is not going to get it, how many are going to get it and how much, therefore, should be prepared,” Ms Flavia Kabahenda, the chairperson of the parliamentary Committee on Gender said.

She added: “As a committee, we thought that 60 days would be enough when the minister requested. Actually, the minister had requested for 90 days but we instead gave 60 days.”

 Mr Richard Byarugaba, the NSSF managing director, told Daily Monitor  yesterday that they are working on the necessary requirements to ensure they pay when the statutory instrument is issued. 

Key among these is a system upgrade and getting the cash available. Statistics indicate that 93,000 savers qualify for the payout amounting to Shs900 billion.

“We have the money but we do not have the cash but we can make the cash available. The reason we asked for that 60 days is to put in place the systems and also to arrange the cash so that as soon as they are ready, the instrument will be issued but definitely it will not be beyond the 60 days,” he said.

He added: “We know that as soon as that happens, there will be a huge request. [At least] 90,000 people coming to our branches would be a nightmare so one of the things hopefully we can do is to allow them to do it online.”

Mr Byarugaba, who welcomed the passing of the Bill, has in earlier communications hinted to suggest that the parent ministry (Gender) should have payments staggered and for savers to access their 20 percent benefits as a lump sum.

NSSF Act

Pending processes

• Send Act to the President: no specified time

• President assents or returns the Act: 30 days upon receipt.

• Act is published in the gazette

• Issuance of statutory instrument: within 60 days