May 2, 2001
Mukwaya hands over a picture of the Workers House at the launch yesterday. President Yoweri Museveni
has directed that the National Social Security Fund (NSSF) be converted into a pension scheme
immediately.
John Eremu reports that under the new arrangement, contributors will on retirement continue earning a
monthly pay until death, unlike the current system where one is paid in a lump-sum.
Museveni, speaking during Labour Day celebrations at Kololo Airstrip yesterday, wondered why the
scheme had not yet been implemented yet the Cabinet approved the conversion in 1995. "I would like
the conversion done without further delay," Museveni said.
He commended the role the workers play in the country's development and urged them to continue
doing so. He said the day's theme, Social Security for Social Protection and Development, was in line
with the Government's policy of poverty eradication.
Museveni said the modern social security system was not new but modelled on the African traditional
system where communities would pool together resources for helping the orphans, the old and the
disabled.
He said the modern system was set up when some people left the rural areas for towns and could no
longer enjoy the traditional social security system.
Museveni said the business sector benefits from the fund by borrowing from commercial banks where
the contributions are deposited.
The occasion, graced by a down-pour, was attended by among others former president, Godfrey
Binaisa, Prime Minister Prof. Apolo Nsibambi, an official from the International Confederation of Free
Trade Unions, Mr. Lawrence Egulu, Cabinet ministers, parliamentarians and diplomats.
Speakers included Kampala RDC Cranimer Kalinda, NOTU chief David Nkojjo, Federation of Uganda
Employers chairman Aloysius Ssemanda. They all commended Museveni upon his victory in the March 12
presidential elections.
Nkojjo called for a labour advisory board, the appointment of the president of the Industrial Court, the
raising of the minimum wage from the current sh2,000 to sh65,000 and the return of the African labour
centre to NOTU. The centre now houses the Law Development Centre.
Gender, labour and social development minister Janat Mukwaya said her ministry tries to satisfy the
workers' demands. She said Museveni had agreed that Constantino Rwaheru and Ms. Ruth Masika be
appointed president and vice-president of the Industrial Court.
Had it not been for the presidential elections, Mukwaya said the various labour related Bills now pending
in parliament would have been debated.
Ssemanda demanded a reduction in the Pay As You Earn thresh-hold as has been done to graduated
tax because the tax drastically affects workers earnings. He said employers should be represented in
Parliament just like workers are.
The tough-talking Ssemanda called for the liberalisation of the savings scheme but opposed the
privatisation of NSSF, saying it was not owned by the Government but the employers and the workers.
He opposed the raising of the minimum wage to sh65,000, saying it was not sustainable particularly in
the tea and sugar industries.
Museveni said, "This idea of privatising (NSSF), I am not very sure about. I don't know who is floating
that idea."
The President said government will rapidly move to establish at least a community polytechnic in every
sub-county to equip the population with relevant skills.
He said there was need for the NSSF to expand to cover more workers.
December 7, 2001
A National Social Security Fund (NSSF) official has said the company has a sh600m deficit for the
2000/2001 financial year and not sh8b as reported in a World Bank sanctioned report.
The 2001 draft report, titled 'Reforming the Pension Sector and Improving Social Security in Uganda,'
was prepared by the Private Sector Foundation and presented its findings to government, the World
Bank and the International Monetary Fund.
"It is true that we invested in long term benefits that did
not bring in returns. It is also true that a defined
contribution scheme should ordinarily have no deficit in its
accounts," Lawrence Madete, the NSSF Public Relations
Officer said.
He was on Wednesday speaking at a meeting on the
implications of liberalising the pensions sector at Ridah
Hotel in Seeta, Muko
__________
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