Parliament Committee on Gender Labour and Social Development has approved the 20 percent midterm access for National Social Security Fund (NSSF) savers who are aged 45 and have saved for 10 years.
The NSSF bill seeks to among other things, allow for midterm access of NSSF. It was passed by the 10th Parliament, but a ruling by the Speaker of Parliament Jacob Oulanyah guided that all business of the 10th Parliament not assented to had lapsed and needed to be reconsidered.
The bill initially proposed that savers aged 45 years old and those who had saved for at least 10 years qualified for midterm access, however, the President objected to this, guiding that only those who were 45 and had saved for 10 years should be able to access the midterm.
The government had also wanted to provide for dual supervision of the Fund, putting the Ministry of Gender in charge of the social security arm of the Fund, which deals with the welfare of workers and their savings while the Ministry of Finance, would supervise the Investment arm which deals with the business component where savings are invested in assets to generate income.
However, the President wrote to Parliament objecting to the suggestion for dual supervision of the fund. He advised that the split oversight mandate would cause delays in decision making and create loopholes for corruption.
The 10th Parliament based on the guidance, voted to retain the supervision of the fund under the Ministry of Finance. The President also guided that the NSSF Managing Director be a member of the board with voting rights, but also rejected the proposal on 75 % access for persons with disability who cease to be employed for one year.
The committee has now recommended that the Gender Ministry be responsible for the supervision of NSSF.
According to Hon. Flavia Kabahenda the chairperson of the committee, the Ministry of Finance is ably represented on the NSSF board and the benefits of the entire retirement sector and there is no need to have them manage the fund.
While making a presentation in the house on Wednesday, Kabahenda said that the committee is confident that the fund will continue to grow even when placed under the Ministry of Gender, Labour & Social Development.