The National Social Security Fund (NSSF) announced a major upgrade of its pension management system as it prepared for the expected implementation of the NSSF Amendment Bill, which was before Parliament at the time. The move was aimed at ensuring the Fund could efficiently handle a sharp increase in benefit claims if the proposed law was approved.The proposed amendment sought to allow members aged 45 years and above who had consistently contributed to the Fund for at least 10 years to withdraw up to 20 percent of their accumulated savings before retirement. The proposal attracted widespread attention as many Ugandans continued to recover from the economic effects of the COVID-19 pandemic.
NSSF Managing Director Richard Byarugaba said the Fund expected requests amounting to nearly Shs902.5 billion under the proposed mid-term access arrangement. He warned that processing such a large number of applications at once using the existing system could overwhelm operations, making a technology upgrade necessary.Byarugaba also revealed that an additional Shs900 billion would still be needed during the same period to settle members qualifying for benefits under the existing NSSF law. Despite the huge financial obligation, he maintained that the Fund was well prepared to meet all eligible payments.To strengthen its operations, NSSF commissioned the installation of an upgraded version of the Clearview Pension Administrative Solution (CPAS), with deployment scheduled to begin on November 1, 2021. The modern platform was designed to improve efficiency, speed up claims processing, enhance data management, and support detailed financial auditing.The CPAS system had already been adopted in several other countries and was recognized for its ability to handle large volumes of transactions while providing secure administrative services. Its flexible design was expected to help NSSF maintain smooth operations even during periods of exceptionally high demand.
Under Section 24A of the proposed Amendment Bill, members aged 45 years and above with at least 10 years of contributions would qualify to access a sum not exceeding 20 percent of their accrued benefits. The proposal was introduced following growing public pressure during the COVID-19 lockdowns, when thousands of workers lost jobs, businesses closed, and many families faced severe financial hardship.Although President Yoweri Museveni expressed reservations about certain aspects of the Bill, he acknowledged the need for workers to access part of their savings. NSSF reassured members that it had sufficient financial resources to honor all eligible claims once the Amendment Bill was passed by Parliament and signed into law.
