The National Social Security Fund -NSSF managing director Richard Byarugaba has welcomed the idea of shifting the fund title to after being put under fire to remit 20percent of member’s savings.

This comes after officials in the pension sector debating to have NSSF remove the phrase social security as it has stirred the delusion that the fund has the responsibility of providing benefits to its members prior to retirement time.

Martin Nsubuga, the executive director of the Uganda Retirement Benefits Regulatory Authority -URBRA, which regulates NSSF, says now is the time to opt for a name that reflects what the fund represents.

Nsubuga says the current name is confusing the public to think NSSF must provide benefits beyond retirement.

Byarugaba agrees that the fund is meant to be a provident fund and not a social security fund as misconstrued by the public.

The ongoing COVID-19 crisis has forced members to demand 20percent each of their savings from the fund to cater to their financial constraints owing to the protracted lockdown.

But Byarugaba says social security benefits like medical, housing, unemployment, and education are the role of the state and it should do that.

He explains that a provident fund, which NSSF should be, is expected to receive contributions, invest them, and payout when the saver is going into retirement.

In a letter to the Minister of Finance, Byarugaba argues that remitting such amount of funds is similar to selling some of the fund’s assets to raise at least 2.6 trillion Shillings just to pay savers.

Byarugaba further states that this would raise interest rates in the market as commercial banks would run to buy NSSF assets instead of lending out money to businesses.

However, Byarugaba has since changed stance saying the fund supports mid-term access and can find the money if the Members of Parliament passed amendments to the NSSF Act to allow for access.

In a denial letter, former NSSF deputy managing director Geraldine Ssali argued to the contrary saying the money can be found and that liquidating 20% of assets was a tiny portion of NSSF that it would have an insignificant impact on the interest rates.

A provident fund is where a member, employers contribute but the saver is paid a lump sum on retirement.

Social security means one can be given access whenever there is a shock that threatens their existence.