The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The Managing Director of the National Social Security Fund (NSSF), Richard Byarugaba has said that they will have no option but to pay the 20 percent to each saver as long as it is approved by Parliament.
Members of Parliament are debating a midterm access of the funds for NSSF savers who have also been hit hard during the coronavirus (COVID-19) lockdown, but NSSF had warned that the fund will crush if it pays the 20 percent to each saver when approved. By March 31st, 2020, NSSF had a total member portfolio of 11.4 trillion .
In a letter to the Finance Minister dated May 5, 2020, Byarugaba says the fund will have to pay at least 3.7 trillion Shillings to savers who are affected by COVID-19 and also savers above 55-years, the legal age where one can draw their savings.
He argues that they do not have physical cash but would have to sell treasury bonds to meet benefits payments but also NSSF assets.
In an interview with Uganda Radio Network (URN), Byarugaba however said that everyone is blaming them for failing to allow Ugandans to access the money, but this problem is not only theirs but also for Members of Parliament.
He says for now although they are not in support of releasing the funds because it will stress the funds, the MPs are the ones who should be taking the blame since they are sitting on the law that could have encouraged Ugandans to get midterm access.
“The law doesn’t give us any leeway to help our members, the law that could have given us leeway has been in Parliament since last year and the MPs haven’t agreed who should be in charge of NSSF. And in the meantime the law that should have helped us to help our members during this period is sitting in their interest since last year,” reasoned Byarugaba.
The NSSF boss added that although they are currently being attacked by the public on social media among others, the people who should be taking the blame should be members of Parliament. “They have the law that would even allow members to get benefits. We could have been able to do that, but we can’t do that because we would go to jail,” said Byarugaba.
He says NSSF empathizes with the savers and they are actually hit by COVID-19 and they would be able to help if the law was passed. He says what they wanted is to make the policy makers to know the dangers of allowing the access to that money which they do not have in their accounts.
“NSSF would pay it, but members would know that they would loose money because your balances will be reduced by the loss that we make.” says Byarugaba.
According to Workers MP Sam Lyomoki, their proposal is that Ugandans beyond the age of 45 and those that have saved for 10 years will be the one to benefit from the proposal.
NSSF assets are at 13 trillion invested in Kenya, Uganda, Tanzania and Rwanda. NSSF has 2.3 million members at the moment. However, close to a half (1m people) have less than 10 million on their accounts. Some 7 percent (161,000) people have balances above 50 million, an indicator that only a paltry of savers have sizeable savings.
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URN
What is needed, is levelheaded and emotionless debate of the law taking into account facts on savings and repercussions of such a bill if passed on the future. I say, we need to know that this hard season will pass and so we need not pass lasting effects based on a temporal situation.
Ronald
Reason like you have ever gone to school. We are not demanding all the money. We only need 20% of it to go through this hard time and mid-term access does not mean that the saver will withdraw all the funds. Remember, countries such as the USA, Canada, etc have passed stimulus bills to pay their citizens a stimulus cheque in this hard time moreover from government funds. But Uganda, where people have saved for years, is where you tell people that you have no funds. What does the NSSF act say about investing people’s funds, does it give them the mandate to invest all such funds and remain without liquidity.
Mark your NSSF staff are even paid higher than the savers themselves on account of our money.
This is not a fight, it’s just about access to our money, period. Some people have even clocked the age cap, and have walked fr their money in vain, till their death.
Nssf should know that people don’t leave for ever, at one we all shall pass on, who knows what tomorrow will bring? Well, corona maybe. Don’t tell me about tomorrow if today is looking worst yesterday, i am not going to be ashamed to demand from Nssf just as i contribute to it, if i go to bed night and don’t wake up tomorrow, of what value would i have invested my money them when it wasn’t there when I needed it most is his the manner in which my next of kin will be treated when come claim this funds when am gone, this are not day to sound wise and pretend to be out of touch with what’s happening on the ground. Byrugaba should know that the government has managed the pandemic very well, starvation is can easily become covid 20 and this time no amount of quarantines will alter it charge. Make no mistake about this matter sir, this super ball is sitting right on your desk looking at you and smiling. Fix this and save the nation and , we shall crown you king Byrugaba. Thanks
Thank you George oyite
Please forgive my grammar, i wrote this when my phone was warning ⚠ battery was on Zero bar.
Mr. Byaruhanga welcome to the light side of workers. But we advise you to have your team of employees put in place risk management measures. Some of your predictions about selling equities and bonds at an undervalue are real. We expect you to negotiate with banks who borrow our funds to lend NSSF money at below market rates, we expect you to negotiate with our debtors like the government of Uganda and Kenya to redeem securities at full value or provide soft loans. We expect the government of Uganda to facilitate you to borrow at zero interest from world bank group or other body. We expect you to show members that nssf can be trusted, be transparent, rebuild trust and convice many members who would not take the 20 percent if they trusted NSSF to keep it in the fund. We assure you that if you handle this properly, many members will not seek the relief at once. Actually we can agree to a system where the relief is deferred for up to six or twelve months. Such that it is paid as funds become available.
Just be transparent, partner with the members. Show to us that you care about us. Show us that our funds are safe. If NSSF loses, we lose, we are willing to work with you to ensure that we create a proper balance between maintaining the intergrity of the fund and giving members relief.
You have summed up my thought exactly. It hurts to know how well they leave on our savings while we are suffering. I didn’t get the point where he says put balance will encure looses. They need to elaborate on that. I just need my money I did sweat to save. Government doesn’t help put a coin in my pocket, or put food on my table or pay my children school fees. I will praise nssf if it let’s me have some of my money and I will keep saving if we got our jobs back.
We need our money that’s all.
I agree about the law governing the NSSF members fund very correct and supported but how about where did the law for withdrawing 380 million to national task force COVID19 come from or were the members even informed of the same?
Money is being withdrawn to support other non contributers when the true owners are being deceived mbo the law…simanyi parliament is taking too long to pass the Bill.
SK
who is responsible in parliament to pass the NSSF amendment bill!! ,members are tired and disgusted of hearing the same talks from yr to yr as their money is being used to generate mega commissions for the board members .its really filthy