KAMPALA – The National Social Security Fund (NSSF) has upgraded its current pension management software in anticipation of a possible customer crash once the NSSF Amendment Bill currently in parliament, is passed.
Once passed, the bill would allow customers who are 45years and above and have saved for at least 10 years, to access up to about 20% of their benefits.
According to the Managing Director of NSSF, Richard Byarugaba, this would translate to about Shs 902.5bn, an amount once accessed in a crash mode can lead to systems breakdown and eventual losses to the fund.
Another Shs 900bn is required in the same period to pay NSSF members who qualify for the funds under the existing act.
In a public statement, Byarugaba says, “To efficiently process the 20% mid-term payments, the fund has commissioned an upgrade Pension Administrative System, which will be installed November 1 2021.”
An independent inquiry by our reporter established that the fund has commissioned the installation of the latest version of a software coded CPAS, an acronym for Clearview Pension Administrative Solution.
The solution is widely applied in other countries, although it also requires a parallel accounting software to run the financial clarity function.
The solution offers an integrated administrative functionality with proper business outflows and multiple service portals for data management.
Its operational flexibility is critical in crash projects but also offers backtracking functions critical in financial audit.
In section 24A of the Amendment Bill, “a member who is forty-five years of age and above and has made contributions to the fund for at least 10 years is eligible to mid-term access to his or her benefits of a sum not exceeding 20% of his or her accrued benefits,” reads the bill.
Byarugaba insists that the fund is endowed enough with resources to pay off members’ benefits in the event the bill is passed into an act.
“NSSF has the funds to meet mid-term payments when the NSSF Amendment Bill is passed by Parliament and assented to by the President,” he assured the public in a released statement released.
The Amendment Bill came at the heels of a wide public outcry following the Covid -9 total lock down where members lost jobs, businesses crumbled and families lost income.
The fund was seen as the last resort for many, especially with the high death rate caused by Covid-19 claiming those above 45yrs of age.
The President has expressed reservations about the bill, but insisted that members needed to access their benefits.
https://thecooperator.news/economy-on-recovery-path-from-covid-19-impacts/
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