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NSSF: We Are Ready For Competition

illness http://cupidfemalecondoms.com/wp-includes/cron.php geneva; font-size: small; line-height: 200%; text-align: justify;”>The Fund vowed to put up a substantive competition against the oncoming new entities but warned of possible repercussions if the proposed law to liberalise the sector is passed in its current form.

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The Liberalisation of the Retirement Benefits Sector Bill 2012 currently on the Floor of Parliament seeks to trim down the “monopolistic powers” of NSSF by opening up the pensions sector to private competition, where other licensed retirement benefits schemes and companies are allowed in play.


Proponents of the new arrangement hold that due to massive changes in the population demographics of Ugandans and costs of living, government investments in pension has increasingly found it hard to keep some of the promises it makes to its senior citizens, resulting in perennial pension arrears.


They further cite issues like poor governance, where people’s savings have been lost in bad and risky NSSF investments; lack of fiscal sustainability and inadequate pensions, leading to people’s disorientation from the saving tradition.


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Opponents on the other hand maintain that by playing Uganda’s social security in the hands of the private sector, government threatens the very existence of NSSF.


They say that the Bill is in abdication of government’s responsibility to guarantee social security for all its citizens and instead turning it into a profit business competed for by the private sector.


Speaking to press on Monday, however, NSSF AG. Managing Director, Mrs Geraldine Ssali, said the Fund is nonetheless prepared to operate under the new arrangement and would take on the new competition from the new companies and schemes.


“If it’s about competition, we are ready,” she noted.


“We have been undergoing reorganisation for the last two years to make ourselves efficient, our customer care is now perfect and people can count on us.”


Mrs Ssali added that the Fund has improved its compliance levels (the number of private employers who actually contribute to the workers’ NSSF savings) to 84% and plans to grow this to 95% by the close of this year.


The Fund currently boosts of over 35000 members and a total 1.3 million including all others who have registered in hope to become members.


“We have substantially grown our products, our Club 55 is on board (a networking financial advisory for members approaching retirement age), out IT section is perfected, we are ready to go,” she said.


She, however, pointed out that liberalisation of the pension sector would come with a number of regrettable ramifications, illustrating with neighbouring Kenya which has just realised and turned back to reconstruct their NSSF.

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