NSSF 20% COVID payout may lead to poor performance and run on Fund, warns M.D Byarugaba

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Early last month many commentators and politicians came up to advocate for a 20 per cent COVID-19 payout by the National Social Security Fund (NSSF) to each member as a way to help people manage the COVID-19 pandemic crisis.

In response to the calls, the NSSF’s Managing Director Richard Byarugaba has penned to the Minister of Finance, Planning and Economic Development Hon Matia Kasaija seeking his guidance on how to address the issue of paying 20 per cent of savings to NSSF members.

The pandemic has affected all sectors and many people are likely to lose their jobs and others are failing to service loan obligations.

In a letter to Kasaija, Byarugaba highlighted the proposal’s implications not only to NSSF but the economy as a whole.

“In recent weeks, there have been growing calls from the Fund to pay its members twenty per cent of their balances. It appears this debate will soon be introduced on the floor of parliament.

“Honorable Minister, we are writing this letter to share with you our understanding of the implications o of the proposal to the Fund, its members and to Uganda’s economy at large,” Byarugaba’s letter read in parts.

The letter bears detailed membership information presented in percentages and as well cites financial reporting and legal implications of the proposal.

See full letter below  

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