President Yoweri Museveni has agreed to the workers mid-term access to their saving in the National Social Security fund and directed the Minister for Gender, Labour and Social Development Betty Amongi to make changes to the bill and return it for consent.
Using dramatic backdrops and biblical sayings, the President noted if this does not work out, it will be a lesson learned together.
“You remember Shakespeare’s play The Merchant of Venice? Shylock with his my pound of flesh whether you die or what! For the NRM not to be that Shylock and since these people think this is the solution, lets go ahead. If it doesn’t work out we shall see..learn together instead of being like shylock,” the President said.. before adding, “You go, I wash my hands. I have become Pontious Pilate!
Shylock is a fictional character in William Shakespeare’s play The Merchant of Venice, a Venetian Jewish moneylender.While in St. Matthew’s gospel, Pontius Pilate ‘washed his hands before the multitude, saying, I am innocent of the blood of this just person’. This was to show the crowd he did not want Jesus dead, but ordered his death because that is what the people wanted. He was washing his hands of the responsibility.
According to the Statement from State House, It has been agreed that somebody who is 45 years and has saved for ten years can access up to 20% of their savings. The commencement date will be set in the statutory instrument, supervision of the fund is by the Ministry of Finance, while the NSSF MD is a member of the Board of directors.
Conflicting information and change in wording regarding the National Social Security (Amendment) bill forced the president to push a major decision on the workers mid-term access to today.
The workers representatives attended the meeting, representatives from the Ministry of Finance led by the Minister Matia Kasaijja, the MD of NSSF Richard Byarugaba members of NOTU and COFTU.
The President said he was more concerned about destroying the viability of the fund.
“The fear was if you do that, you degrade huge money put together and which the fund is using to invest instead of going abroad to beg. Also a worker may end up getting less by 30 million at his retirement,” he said.
According to the NSSF MD Richard Byarugaba, the fund collects Shs125 billion a month, Shs1.5 trillion per year and pay up to Shs900 billion for members qualifying in other benefits.
However, Minister Amongi Betty said they had delved into all the issues and their conclusion is that, it would not have a substantial impact on the depletion of the fund because the fund is Shs 15 trillion and they need between Shs800 billion to Shs1 trillion to handle mid-term access at a go.
“We agreed to schedule it. We don’t pay all at a go but about 20% of members in a certain period and have also have a criteria like age and amount saved,” she said.
The Minister of Finance Matia Kasaija said they had already done brief to the president on how they are going to handle this including formation of regulations that will govern the way the money will get out.
Every month, institutions deduct 5% of employees’ salaries as contribution to NSSF, the employers tops it up with 10% while NSSF earns them 12%.
NSSF is a government agency responsible for the collection, safekeeping, responsible investment and distribution of retirement funds from employees in the private sector who are not covered by the government retirement scheme.