NSSF Boss Warns of Tough Times if Forced to Pay 20% to Savers
The Managing Director of the National Social Security Fund (NSSF), Richard Byarugaba has warned of the likelihood of the collapse of the fund if the suggestion that it pays 20 per cent to each saver is approved.
In a ‘passionate’ four-page letter to the Minister of Finance Matia Kasaija, Byarugaba said “the proposal not only ruins the NSSF but also has wider negative implications for the economy and society.
The letter though doesn’t tell exactly how the fund will collapse by releasing 20 per cent to savers.
The Coronavirus crisis has seen businesses shut, many workers either laid off or had pay cuts.
Many are struggling to survive, giving rise to suggestion on whether they can draw on their pension savings in NSSF.
The issue is in parliament and will likely be approved. NSSF has 2.3 million members at the moment.
However, close to a half (1m people) have less than 10 million on their accounts.