By Ritah Kemigisa
Parliament has considered and passed The National Social Security Fund (Amendment) Bill, 2019 which will allow workers midterm access to their savings at the age of 45.
The bill now waits approval by president Museveni to become a law.
According to the current law, savings can only be accessed when a saver clocks 55.
Now with the amendment , NSSF members aged 45 and above and who have saved for at least 10 years will access 20% of their benefits.
Contributors who lose their jobs and fail to get employment for five years will have to first attain the age of 45 to be allowed to get 40% of their savings.
If the amendments are approved by the president, persons with disabilities who contribute to the fund but fail to get gainful employment for a year will be allowed 75% of their benefits.
The amended law also recommends the appointment of a stakeholder board appointed by the Minister comprised of representatives of Government, employers and employees and also give the same board powers to introduce new benefits in consultation with the Minister.
The amendment also allows the appointment of the Managing Director and Deputy Managing Director by the Minister on the recommendation of the board for a term of five years renewable on satisfactory performance.
Meanwhile the amended law provides for the deference of taxes on contributions and scheme income to the time of payment of benefits.