The National Social Security Fund (NSSF) Managing Director, Richard Byarugaba, has informed the public that they do not have enough funds to serve the requests of all the people who will need access to their funds at once, a following the President’s directive that seeks to give mid-term access to Ugandans to their savings.
The President recently gave greenlight to Ugandans saving with the NSSF to have access to 20 per cent of their savings which meant that anyone above 45 years and has saved for ten years is eligible. However, this is pending approval of statutory instruments by the ministry of finance.
NSSF managing director Richard Byarugaba notes that the fund has over 100,000 members who qualify to access their funds at 45 years but this calls for statutory instruments to help them on how the money can be distributed without affecting the fund.
“So, we will have to find criteria for helping us to prioritise who to give first, rather than everyone. Because we are constrained, otherwise, as we said we just dismantle the whole fund, pay off people and then see what happens.”
This to Byarugaba calls for a change in their systems in addition to diverting their operational cash flows to raise at least one trillion shillings required to commence payments. He says the fund cannot give out money to all applicants at once, since it will affect the fund investments.
“The minister will allows us the flexibility not to pay out all these monies in one go, so if people apply for them, there might be a criterion for those we pay first and those we pay a little bit later when the money comes in.”
He however requests parliament to at least consider short term and long term plans.
The Chairman General of the National Organization of Trade Unions Usher Owere says the decision is in the interest of many suffering Ugandans.
Ugandans have however been cautioned against misusing the money.
The fund collects Shs125bn a month, Shs1.5trillion per year and pays up to Shs900bn for members who qualify for other benefits