Post: Facts About NSSF Pension Sector Liberalization Bill That Will Make You Think Twice

Facts About NSSF Pension Sector Liberalization Bill That Will Make You Think Twice

National Social Security Fund (NSSF) has been one busy bee this month with its FWB marketing campaign, Hash run and donation drives. Certainly one of NSSF’s most popular actions this month has been the Friends with Benefits (FWB) marketing campaign.

Millennials typically use the time period Friend-with-Benefits to imply a withstanding appointment for sex-on-demand with acquaintances.

This is completed with the hope that there will likely be no lingering emotions or attachments between the consenting participants. This is definitely a unique type of Friend with Benefits marketing campaign.

The campaign, which is the third of its kind in three years, began in 2016. It’s an initiative by NSSF that spotlight the advantages of saving with National Social Security Fund (NSSF).

This week saw three participants of the NSSF Friends With Benefits campaign winning ten, fifteen and thirty million Uganda shillings. On the reward ceremony, the managing director of NSSF, Mr Richard Patrick Byarugaba, stressed that the campaign helps them as NSSF understand and assist Ugandans with saving and good investment methods for financially secure futures.

Unfortunately, one more reason NSSF is on people’s minds this week is that of the 2011 pension sector reform bill. The question on people’s minds last year was, “will the proposed liberalization bill finally be passed in 2018?” This week, that question was answered with a robust “NO”. This was the predicted outcome since some workers’ representatives in parliament had been among the many opposing stakeholders.

The general public was and still is divided in its views of the bill that was tabled in parliament 7 years ago. For some, this seemed like the way to go if implemented appropriately. We would be a more inclusive if social security had lowered interest rates within the pension sector.

Some other Ugandans had been comfortable with the established order and felt nervous concerning the proposed 2011 liberalization bill bringing in new players within the game.

The cabinet’s decision was to shelve plans to liberalize the pension sector and as a substitute amend cap 22 of the NSSF Act which sees National Social Security Fund remaining as the one national scheme that collects 15% month-to-month mandatory funds from workers within the formal and informal sectors.

NSSF Pension Sector Liberalization bill: 7 Year Chase Ends in Disappointment

These amendments suggest that the proposed 2011 liberalization bill needs to be withdrawn from parliament. This came as a disappointment to licensed sector players within the insurance coverage industry that had been working intently with URBRA to ironing out the main points prior to liberalization. It’s virtually as cruel as waiting for the girl you love to finally be ready to say yes to your proposal.

You then proceed to spend seven years excitedly getting ready to be part of her life, just for the day to reach and she says “I think I will stick to what I do know. Nasser knows how to treat me properly. He will get the job completed.” One might think the pension sector reform bill was like a bid for a polyandrous relationship.

The cabinet decided the Ugandan pension sector was not ready for that kind of relationship. In the event you close your eyes and pay attention closely, you can still hear the sighs of frustration and disillusionment of licensed players.

The NSSF FWB marketing campaign and other campaigns similar to it brought out the saving spirit within the Ugandan people. With people saving financial assets, the opportunities for pension schemes increase. This means that profits, if any, will likely be realized by the sole pension scheme in Uganda.

The bill sought to end the NSSF monopoly by permitting different schemes to compete for savers, pay monthly pension, as a substitute of lump-sum provident on retirement and allow those that saved money for over 30 years access to 30% of their financial savings to secure mortgages or loans from any financial institutions.

The recent decision to withdraw the 2011 Pension Liberalization bill means we’d not take pleasure in any of these benefits any time soon.

Just a quick reminder, don’t miss the 8th Uganda UK Investment Convention 2018. If you are not UK / European resident, you need to order your ticket from this link. Entitles you an Invitation letter for your VISA application.

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John Doe

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