NSSF mid-term access: Shs78b paid out to eligible members
NSSF managing Director Richard Byarugaba addresses the annual members meeting in Kampala on September 28,2020. Photo | File
What you need to know:
- Although the fund hit above its maiden weekly target, NSSF indicates that the claims so far received add to a total to be paid in one and half months.
- Amidst a 45-day window to process payments, NSSF MD Mr Byarugaba said their system takes a minimum of two days and the next pay-out is expected March 24.
The National Social Security Fund (NSSF) says Shs78.8billion has so far been paid out to claimants of midterm benefits, a week since the payments started.
“We offered to pay Shs50billion per week, and we have paid 4,417. This implies that 30 percent applicants have been paid within the first week since we commenced payment on March 11,” Mr Richard Byarugaba, the fund managing director told journalists in Kampala yesterday.
Data from the fund shows that since March 7, of 14,690 applications amounting to shs305billionn have been received so far. About 8,697 of the applications were received at the fund’s branches and the temporary set-up at Kololo Airstrip while 5,993 were received online via its self- service platforms.
The total number of eligible members as of March 1, stands at 41,000, whose 20 percent benefits add up to Shs793 billion.
A trend analysis of those who have received payments so far shows that majority have balances below Shs10million, while a few claimants are sharing the huge chunk of the amounts paid out.
Of the Shs78.8bn paid so far, 3,606 claimants shared a total of Shs16.9billion, meaning each on average receives Shs4.6 million.
At least 328 members have received between Shs10-50million, totaling to Shs8.9bn. Another 303 applicants have received between Shs50-100million, totaling to Shs21.3bn.
Only 180 members have shared Shs31billion, with each receiving above Shs100million.
Asked for evidence of some of the payments made, Mr Byarugaba said “he could not divulge such details due to client confidentiality.”
This followed complaints from some applicants suggesting delays and non-payment despite putting in claims.
“It is a process. We were using human beings to input into the system and that was taking long. On average, our software inputs 200 claims per day and we have about 38 people to do that. It’s not that we don't want to pay all of them or we don’t have the liquidity,” Mr Byarugaba responded.
He added: “The mechanism involves controls, and is sensitive to make sure we are not doing any double entries physically and online.”
‘Special technology’
To speed claims processing, NSSF has adopted special technology as the fund aims to input over 1,000 claims daily, in addition the 200 from the manual process.
NSSF early March earmarked Shs1 trillion for payment of the midterm benefit under Section 20(A) of the NSSF Amendment Act 2021, which grants members who are 45 years and have contributed for 10 years access to 20 per cent of their accrued benefits. A person with disability who is 40 years and has contributed for 10 years can access half of their benefits.
ALSO READ: Fresh row brews over NSSF mid-term money
Although the fund hit above its maiden weekly target, NSSF indicates that the claims so far received add to a total to be paid in one and half months.
Amidst a 45-day window to process payments, Mr Byarugaba said their system takes a minimum of two days and the next pay-out is expected March 24.
Mr Patrick Ayota, the NSSF Deputy Managing Director said “many of the complainants were members for only 10 years that do not meet regulations set by the gender ministry."
