Financial experts have warned those pushing for a 20 per cent pay to the National Social Security Fund (NSSF) members to cushion them against the Covid-19 pandemic economic shocks, risk setting a bad precedent.
Mr Martin Nsubuga, the CEO of Uganda Retirements Benefits Regulatory Authority (URBRA), said it is only Austria that has temporarily lent out its social security savings to its members during the Covid-19 lockdown, but the members will be required to pay back.
The warning by Mr Nsubuga, was supported by Mr Richard Byarugaba, the managing director of the NSSF, who has since said they will need between 2.6 trillion to 3 trillion if they are to pay out the 20 per cent to its members.
Other panelists argued that NSSF members should not be looking at the 20 per cent of their savings to rescue them during the Covid-19 lockdown but have the NSSF Act amended to include a wider scope for members to access savings mid-term such as during unemployment and maternity.
The discussion came hours after a concerned citizen, Mr Morrison Rwakakamba, dragged the NSSF and the Attorney General to the Constitutional Court, seeking court to compel the Fund to pay members 20 per cent of their savings during the lockdown.
