Winners, losers in reworked NSSF Bill

Clause 24(A) had granted access to savers who have clocked 45 or saved for at least 10 years, 20 per cent of their accrued benefits. 

In the President’s suggested amendment, however, only those who both clocked 45 and saved for 10 years will access 20 per cent of the accrued benefits, while sub clause 24(A) 3 granting persons with disabilities access to 75 per cent of accrued benefits after a year with no job will be deleted.

“Allowing midterm access for all members who are 45 years and above or those who have saved 10 years increases the total number of the members eligible to access midterm, which will be unsustainable for the fund,” the Speaker said, quoting the letter.

On PWDs
The President’s letter adds: “…allowing a member with disability who ceases to be employed for a period not later than one year to with draw 75 per cent of their benefits will put the savers at great risk of poverty in old age.”

“In addition, allowing a member who is 45 years of age and above who has ceased to be employed for a period of not less than three years  to be eligible to midterm access to   a sum of 40 per cent of his or her accrued benefits will  erode members’  savings, which will be most required after retirement,” the letter further reads.

The new Bill also returns the supervision of the Fund to the Ministry of Finance, Planning and Economic Development, as opposed to the Fund being supervised by two ministries, as proposed by the 10th Parliament. 

The President said supervision by two ministries would create unnecessary bureaucracy and create room for corruption.
These provisions had been inserted by members of the 10th Parliament, when the Bill was passed in February 2020, but bred contention among workers and managers of the fund and reservations from the President. 

Mr Museveni in his letter indicates that the amendments were reached upon after numerous engagement with workers representatives in Parliament, trade unions and the managers of the fund. 

Procedurally, after the reading of the letter, the original Bill would have been  brought back to Parliament for the amendment to be effected.

But following a September 16 ruling by Mr Oulanyah that all incomplete business of the 10th Parliament elapsed at its dissolution, the nearly concluded process of the amended Bill was rendered null and void.

“This is not going to be possible…this matter is no longer with this Parliament, This parliament cannot handle the referral or reconsideration of this Bill. A fresh bill will be introduced hopefully some of the concerns of the President will be incorporated in the new Bill that will come to Parliament to save on time,” Mr Oulanyah said.

The Speaker, however, promised to expedite the processing of the Bill once it is tabled before Parliament because of the effect it has on the public.

“I will use my prerogative not to allow the committee responsible to take the 45 days to handle this bill because this matter had been handled, completed and sent to the president…Parliament had already agreed on what should be done,” he said. 

While addressing journalists in Kampala yesterday, the minister of Gender Labour and Social Development, Ms Betty Amongi, who was tasked with returning the Bill to Parliament, said failure to save the nearly concluded Bill was an oversight on the side of the Executive. 

According to Ms Amongi, all the concerns of the President will be captured in the new law, which she said would be ready in a month, since there will be no stakeholder consultations. 

“I want to assure them [workers] that we are working around the clock to ensure that we harmonise within government and at worst, in the next one month we must conclude the Bill and it is sent to the President and since the President’s views will be incorporated, he will move forward and conclude it,” she said.

Pledge
She added: “I have  consulted widely, including with the Attorney General, and I have  been guided that the provision should now be redrafted,  cleaned up and the new Bill quickly sent to Cabinet by Monday so that on Tuesday next week  or any other  day by next week, we are able to reintroduce it  to Parliament.”

Ms Amongi, who intimated that they have received numerous petitions from workers on the way forward, said the commencement of pay outs will not be significantly delayed once the law is enacted.  

NSSF managing director Richard Byarugaba estimated that it would take about three months for payments to commence after all requirements, including a statutory instrument on the procedures of access, are put in place by the minister of Finance.

“It was a joint concerns that they [NSSF] should start putting in place frameworks, in terms of guidelines, in terms of procedure how to access, terms and conditions so I’m very certain that with the new board in place, they will be working out terms and conditions   and by the time we enact this Bill, it will no longer be requiring all that period of time for access,” Ms Amongi said.

Museveni’s proposed amendments

1. Only those who both clocked 45 and saved for 10 years will access 20 per cent of the accrued benefits, while sub clause 24(A) 3 granting persons with disabilities access to 75 per cent of accrued benefits after a year with no job will be deleted.

2. The new Bill also returns the supervision of the Fund to the Ministry of Finance, Planning and Economic Development, as opposed to the Fund being supervised by two ministries, as proposed by the 10th Parliament.

The President said supervision by two ministries would create unnecessary bureaucracy and create room for corruption.

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