The National Social Security Fund (NSSF) has embarked on consultations to amend the NSSF Act to allow a portion of a member’s benefits to be utilized as collateral to access a mortgage or loan to acquire a residential house.
According to NSSF Managing Director, Richard Byarugaba, the Fund is in receipt of the Uganda Retirement Benefits Authority (Assignment of Retirement Benefits for Mortgages and Loans) Regulations, 2022 issued by the Minister of Finance, Planning and Economic Development.
“We have always supported reforms to laws governing retirement benefit schemes in Uganda. Specifically, a law that allows for a portion of a member’s benefits to be utilized as collateral to access a mortgage or loan to acquire a residential house.
This position is further informed by feedback obtained from our members during various post-retirement surveys, which show that over 68% of fund beneficiaries spend their retirement money on land acquisition, home improvement, and construction,” he said.
However, the NSSF Act currently provides for full protection to members’ contributions and benefits and prohibits any charging or assignment of the same to a third party.
This constrains the Fund from immediately implementing the recently issued regulations.
In this regard, NSSF commenced consultations with key stakeholders including the Fund’s supervising Ministry with a view to amending the offending clauses in the NSSF Act.