The National Social Security Fund (NSSF) Managing Director Richard Byarugaba has disclosed that the institution has no money to pay to savers who clock 45 years.
Byarugaba said if the law is passed to provide 20% midterm access to savers, NSSF will need about Shs900 billion which they currently do not have.
While appearing before the parliamentary committee of gender, Barugaba said they will need a grace period to mobilise the funds.
He said the savers’ money was borrowed to Tanzania, Kenya, Rwanda, and the government of Uganda in long-term investments.
He however said that if the law is passed, they can only afford to pay savers in a staggered manner.
Earlier this week, the Parliamentary Committee on Gender started processing the National Social Security Fund Amendment Bill 2021, recently re-tabled before Parliament.
Three weeks ago, Speaker of the 11th Parliament, Jacob Oulanyah directed that all Bills passed by the 10th Parliament but not signed by President Yoweri Museveni will be re-tabled for fresh discussions.
National Social Security Fund (NSSF) Bill was among the bills to be retabled. This year in August, President Yoweri Museveni agreed to workers having mid-term access to their savings.
Museveni noted that in case it doesn’t work, we shall learn from it.
“You remember Shakespeare’s play The Merchant of Venice? Shylock with my pound of flesh whether you die or what! For the NRM not to be that Shylock and since these people think this is the solution, let’s go ahead. If it doesn’t work out, we shall see. Learn together instead of being like shylock,” he said.