The National Social Security Fund (NSSF) has revealed that it will start paying eligible members for the mid-term access in respect to Section 20A (1), (2), effective March 17, 2022.
Shs1 trillion has been earmarked for this exercise for this year, estimating that Shs50 billion will be paid out weekly over the next five months to eligible members who have applied for the benefit.
Speaking earlier today, the NSSF Managing Director, Richard Byarugaba said that payment systems have been put in place to enable the payments.
“Today we have started receiving applications for qualifying members of the mid-term benefit and I want to assure all NSSF members and Ugandans that we are more than ready to start paying out money to eligible members. As of March 1st 2022, we had 41,174 members eligible for these payments and in accordance with the regulations stipulated by the Minister of Gender, Labour and Social Development last week, a National ID, Verifiable mobile phone number, verifiable Bank Account, NSSF Number, one e-photo is all that is required to finalise the verification and application process,” Byarugaba said.
To streamline the process, the Fund has announced that applications can be made through mobile phone (on MTN and Airtel networks), online web platform and at different physical locations that include NSSF branches, selected employer premises and at Kololo Airstrip.
Payments will then be made either through a member’s bank account or mobile money channels. Withdrawals of less than Shs 3 million will be by mobile money, as per the National Payments Systems Act, 2020, and the National Payments Systems Regulations, 2021 and a Verifiable Bank Account for those with payments above Shs3 million.
Eligible members for the mid-term benefit as per section 20 (A) of the National Social Security Fund Act, 2022 is 45 year old 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 per cent of his or her accrued benefits and 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 per cent of his or her accrued benefits.
NSSF Midterm Access to Benefits Regulations 2022, gazetted last week, eligible members for the benefit must have at least 120 monthly contributions with the Fund and may opt to apply for their benefits in installments agreed upon with the fund.
“Beyond the support to ensure that members successfully withdraw their savings, we have also boosted our financial wellness program to enable our members to continue making the best decisions regarding investment of their hard-earned money. This is advised by our research that shows that only 2% of savers who withdraw their money go on to invest it in long term projects while others fall back on hard times. We aim to ensure that we remain relevant to our savers at any stage of their journey with us,” said Richard.
The NSSF Act 2022 was first presented to parliament in May 2018 and after various revisions was passed by parliament in November 2021, assented to by the President in January 2022 and gazette as law in January 2022.