Parliament to debate the proposal to access NSSF savings at 45
Parliament is set to debate a joint House committee proposal that provides for mid-term access of National Social Security Fund (NSSF) savings.
Parliament will today debate proposal that provides for a person to access 20 % of NSSF savings at the age of 45 although some MPs have threatened to remove the cap and allow NSSF members regardless of age to access part of their savings.
The proposed amendments to NSSF Act seek, among other things, to allow people who have reached the age of 45 to access 20 per cent of their savings.
Some MPs have however, threatened to remove the cap and allow NSSF members regardless of age to access part of their savings as long as they have saved with the Fund for at least 10 years.
The Bill, which will be presented by the Gender Committee chairperson, Alex Ndeezi, had been lined up for tabling yesterday but time didn’t allow.
Workers through their trade unions last year told Parliament that they want their members to access their savings when they turn 45 years of age as long as they have been saving with the National Social Security Fund (NSSF) for at least 10 years.
Mr Sam Lyomoki, the workers representative, told the joint Parliamentary Committees of Gender and Finance that the reforms being introduced in the NSSF Bill should expand the scope of benefits to allow individuals with various challenges such as unemployment, sickness and school fees to help them solve their issues that affect their social being without waiting for retirement.
“We want to have midterm access to NSSF money. People can be able to access their money when they have worked and are 45 years old instead of waiting for 55 years,” Mr Lyomoki said.
He was flanked by members of the Central Organisation of Free Trade Unions (COFTU) and the National Organisation of Trade Unions (Notu) together with affiliated labour unions of drivers, cooperatives, commercial, professional employees, educational, government, micro finance, civil, domestic and agricultural workers.
Notu chairperson, Mr Wilson Owere, said workers who have saved with NSSF for at least 10 years and are aged 45 and above should be allowed to get 20 per cent of their savings to enable them invest in their projects.
The workers also rejected Gender minister Janat Mukwaya’s proposal to exempt members from taxation at contributory and investment levels but introduce taxation when the members seek to withdraw their benefits before they make the mandatory retirement age of 60.
The workers’ other contention is allowing government by law to directly borrow from NSSF. They questioned the motive since the government has been getting the money through treasury Bills.