Parliamentary sitting chaired by Speaker Rebecca Alitwala Kadaga on Wednesday passed the National Social Security Fund (Amendment) Bill, 2019 – with amendments which allows members midterm access to their savings.
The Bill says that a person aged 45 years or one who has saved with NSSF for at least 10 years, can withdraw up to 20% of their savings.
There are about 1.5 million NSSF subscribers.
The Bill was passed following months of debate.
Two ministries, Ministry of Gender Labour and Social Development and that of the Ministry of Finance will manage the operations of the National Social Security Fund.
However, Parliament did not approve of unemployment benefits. The proposal was that a member of the Fund who has been unemployed for a continuous period of two years will be eligible for unemployment benefits. The rejected proposal had provided that the member must show evidence of having actively sought employment in vain.
The Bill now is pending the President to assent to it to become law.The Bill was tabled in 2019 by the state for Youth and Children Affairs Minister, Florence Nakiwala Kiyingi. It proposed 29 amendments to expand social security coverage through mandatory contributions of all workers regardless of the size of the enterprise or number of workers. It also seeks to establish a stakeholder board, provide for midterm access to voluntary contributions and enhance fines.