President Yoweri Museveni on Tuesday exercised article 91 of the Constitution and assented to the National Social Security Fund (Amendment) Bill, 2021 which will among others provides 20 percent midterm access to the contributors.

The revelation was made in a statement by the senior presidential press secretary Linda Nabusayi.

Under the new law persons aged 45 years and above who have saved for at least 10 years will have midterm access of up to 20 per cent of their savings, while Persons With Disabilities (PWDs) who have saved with the Fund for more than 10 years will access to 50 per cent of their accrued savings.

This NSSF Bill was first passed by the 10th Parliament on 17 February 2021 before it was returned to the House by President Yoweri Museveni and later re-tabled by the 11th Parliament after the lapse of business of the previous Parliament.

MPs agreed that only mandatory contributors are eligible for midterm access subject to their age and years of contribution, while voluntary contributors will have access to their savings as and when they so wish, subject to the prescribed regulations to be issued by the Minister in consultation with the Board.  

The new law under section 13A (7) furthers grants the Minister power to prescribe by regulations and in consultation with the Board, the procedure for making voluntary contributions and benefits.

On the supervisory role of NSSF, Parliament also voted that the Ministry of Gender takes the lead role in handling social security matters while Ministry of Finance’s role is limited to handling matters on finances and investments of the Fund.

The new law as passed also clipped the powers of the Managing Director by revoking his or her voting right as an ex-officio member of the board to avoid conflict of interest.

As passed, section 13 (A) of the new NSSF Act will also provide a tough deterrent penalty to employers who deduct a voluntary contribution and fail to remit to the fund. In accordance with the new law (as passed), an employer who offends this section will pay 20 per cent of the amount deducted but not remitted.

The Act of Parliament will now await to be assented to by the President in accordance with Article 91 of the Constitution.