We are ensuring that all processes are done online – NSSF MD Richard Byarugaba.
The National Social Security Fund (NSSF) Managing Director (MD) Mr Richard Byarugaba has disclosed that NSSF is ensuring that all processes are done online (automation) so that customers can have the best experience as they receive services.
Richard who assumed office in 2010,was addressing journalists after NSSF western Uganda regional employers’ meeting attended by members/stakeholders from different districts in the region on Tuesday Feb 11,2020 where he revealed that 70% of NSSF customers/members use electronic means while 30% physically visit service centres.
Founded in 1985,NSSF has numerous investments, it is a quasi-government agency,responsible for the collection, safekeeping, responsible investment, and distribution of retirement funds from employees in Uganda for a desirable post retirement life.
Currently out of the estimated Ugandan population of 42 million people,only 19 million are employed and out of 19 million 2.5 million are registered with NSSF.
The NSSF covers all employers who have 5 or more employees between 16 and 55 years of age, with the exception of employees under the Government Pensions scheme. The NSSF Act requires a registered employer is required to pay contributions to the Fund for his/her employees every month during which he/she pays salaries.
The NSSF Act also provides for voluntary membership for employers with less than 5 employees.
Rate of Contribution.
The employer must deduct 5% from the employee’s total gross monthly wage and add 10% of the total gross monthly wage making a total contribution of 15% for each employee. The Payment of contributions must be paid by the 15th day of the following month. The Fund currently collects over UGX 102 billion per month for its members.
The Fund declared and paid an interest rate of 11% to its members for the last Financial Year (2018/2019).
Interest rates are reviewed annually and declared by the Minister of Finance, Planning and Economic Development on the advice of the Board of Directors. Interest rate paid to members is based on the financial performance of the Fund.
About the NSSF bill, Byarugaba challenged Legislators to pass it so that it is signed into law as the tabled amendments are for the public benefit.
A BILL for an Act ENTITLED THE NATIONAL SOCIAL SECURITY FUND (AMENDMENT) ACT,2019.
An Act to amend the National Social Security Fund Act, Cap. 222 to establish a stakeholder board; to provide for mandatory contributions of all workers regardless of the size of the enterprise or number of employeesl to provide for voluntary contributions to the Fund; to empower the Fund to recover from a third party any sum owed to a defaulting contributing employer to cover any contribution, penalty or interest; to provide for midterm access to voluntary contributionsl to provide for a five year tenure for the managing director and deputy managingdirector; to empower the Minister to prescribe a threshold of expenditure by the Fund prior to approval of the annual budget by statutory instrument; to empower the Board to use in-house expertise and fund managers in the investments of scheme funds, including lending to Government; to empower the board to introduce new benefit., in consultation with the Minister; to provide for the payment of an annual levy by the Fund to the Uganda Retirement Benefits Regulatory Authority and for related matters.
Compiled by Editorial – Aaron Ainomugisha – https://twitter.com/AaronAinomugis3