The Minister of Gender Labour and Social Development, Hon Betty Among has in a comprehensive statement explained how Ugandans who have been saving with National Social Security Fund (NSSF) can access midterm savings as mandated by the law.
Statement
1. We have invited you here this morning to brief you about the legal and administrative arrangements that have been made in order to actualize midterm access to benefits that is provided for under the National Social Security Fund (Amendment) Act 2022.
2. As you might be aware, H.E. the President assented to the National Social Security Fund (Amendment) Act 2022 on the 2nd January 2022 and the same became Law upon its publication in the Gazette on 7th January 2022.
3. Ladies and gentlemen, section 20A of the National Social Security Fund Act, 2022 provides for mid-term access to benefits in the following circumstances: –
i). A member who is forty-five years of age and above and who has made contributions to the fund for at least ten years, will be eligible to midterm access to his or her benefits, of a sum not exceeding 20 percent of his or her accrued benefits; and
ii). A member who is a person with disability is forty years of age and above, and has made contributions to the fund for at least ten years, will be eligible to midterm access, of a sum of 50 percent of his or her accrued benefits.
4. Since the passing of the Act, there has been lack of clarity about the meaning of the expression ‘contributions to the fund for at least 10 years. Some have argued that contribution for at least 10 years means a member maintaining an account with the fund for at least 10 years even if the members total contribution are less than 10 years.
5. Given that a year has 12 months, the meaning of the phrase ‘contributions for at feast 10 years’ is that a member should have made at least 120 monthly contributions to the Fund. Ladies and gentlemen of the press, that is the meaning of the Law that was passed by Parliament.
6. Therefore, in order for a member to be eligible for up to 20 percent of his or her accrued benefits, such a member should be forty-five years of age and above and has made a total of 120 monthly contributions to the fund.
7. With regard to persons with disabilities, a member will be eligible for midterm access of 50 percent of his or her accrued benefits if such a member is forty years of age and above, and has made a total of 120 monthly contributions to the fund.
8. Therefore, members who have not made a total of 120 monthly contributions to the Fund will not be eligible for midterm access to benefits even if their accounts have been maintained with the fund for at least 10 years.
9. Let me also take this opportunity to clarify that whereas section 20A (2) provides that a member is eligible for a sum not exceeding 20 percent of his or her accrued benefits, a member may opt to apply for 20 percent of his benefits in installments agreed upon with the fund.
10. Furthermore, whereas section 20A (3) provides that person with disabilities is eligible to midterm access of a sum of 50 percent of his or her accrued benefits, a member who is a person with disability upon agreement with the fund may apply for less than 50 percent of his or her accrued benefit.
11. I wish now to inform you that the rights to midterm access to benefits under section 20A (1), (2) and (3) are subject to Regulations made by the Minister, in consultation with the Board of the fund. The Regulations are supposed to prescribe the terms and conditions and procedures for accessing the accrued midterm benefits.
12. I am pleased to inform you that following consultations with the Board of NSSF, I have issued and signed off the National Social Security Fund (Midterm Access to Benefits) Regulations 2022. The same will be published in the Gazette today Thursday 3rd March 2022 and will accordingly become Law.
13. Therefore, with effect from, Monday 7th March 2022 eligible members as described above will be free to apply for midterm benefits.
14. The Regulations I have referred to above prescribe the procedures for applying for benefits. For avoidance of doubt members will have the option of applying physically or online. Furthermore, the NSSF will be required to make the necessary arrangements to facilitate application by persons with disabilities for midterm access to benefits. The Managing Director, National Social Security Fund will also give more details about the actual procedures for application.
15. Furthermore, over the last few months, the Fund has been developing capabilities to efficiently process and pay Mid-term benefits to qualifying members.
16. For example, the Fund has developed technology to perform validation of both member registration data and mid-term benefit claims among others.
17. Before I conclude I would like to firmly state that the question of whether the Fund has the money to pay Mid-term Benefit or not should not arise. I have received assurances from the Fund that adequate liquidity has been set aside to pay qualifying members as and when they apply.
18. The Fund projects that it will pay about UGX 50 billion per week over the next 5 months. I assure all members of the Fund and the country at large that all qualifying members who would like to be paid, will be paid.