By Agency
Officials in the pension sector are debating the idea to change the name of National Social Security Fund (NSSF) because ‘the way it is now’ doesn’t speak to what the fund is.
Martin Nsubuga, the executive director of the Uganda Retirement Benefits Regulatory Authority (URBRA), the sector regulator, says it’s time to reconsider the name to remove the phrasing social security.
Nsubuga says the current name is confusing the public to think NSSF must provide benefits beyond retirement. He said in a virtual meeting via Zoom on Monday evening, that the fund should be given a name that reflects what it is. This position attracted a nod from NSSF managing director Richard Byarugaba who said the fund “was provident fund and not a social security fund.”
A provident fund is where a member, employers contribute but the saver is paid a lump sum on retirement. Social security means one can be given access whenever there is a shock that threatens their existence.
Byarugaba said there is a huge misconception on the difference between NSSF and social security. He said social security benefits like medical, housing, unemployment and education are a role of the state and it should do that.
Provident fund, which NSSF should be, is expected to receive contributions, invest them and pay out when the saver is going into retirement.
The Coronavirus crisis – which has seen companies shut, jobs lost, and salaries – ignited demand that savers in crisis should be given a portion (20%) of their money to go through the crisis.
