The National Social Security Fund (NSSF) has begun consultations to change the NSSF Act to allow a portion of a member’s payments to be used as collateral to get a mortgage or loan to buy a home. (The NSSF has begun consultations to modify the NSSF Act to facilitate mortgage acquisition)
This was revealed by Richard Byarugaba, the Managing Director of the NSSF, in a statement issued last week, in which he also stated that they favor improvements to Ugandan laws governing retirement benefit systems.
“We have consistently advocated improvements to Ugandan laws governing retirement benefit plans.” A law that permits a portion of a member’s benefits to be used as collateral to obtain a mortgage or loan to purchase a residential house. This viewpoint is supported by input from our members throughout several Post Retirement Surveys, which demonstrate that more than 68 percent of Fund recipients use their retirement funds on land acquisition, home remodeling, and construction.” According to Richard Byarugaba.
The consultations follow the introduction of the Uganda Retirement Benefits Regulatory Authority (Assignment of Retirement Benefits for Mortgages and Loans) Regulations, 2022, by Minister of Finance, Planning, and Economic Development Matia Kasaija.
Members of retirement schemes regulated by the Uganda Retirement Benefits Regulatory Authority (URBRA) would be able to arrange mortgages and loans with up to 50% of their assets, according to the rule. The financing will be related to the construction of low-cost residences as well as the purchase of land for house construction and restoration.
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“In this regard, we have begun negotiations with key parties, including the Fund’s overseeing Ministry, with a view to modifying the NSSF Act’s problematic clauses,” Byarugaba stated.
The NSSF Act now ensures that members’ contributions and benefits are fully protected and that any billing or assignment of the same to a third party is prohibited. This prevents the Fund from applying the freshly released regulations right away. (The NSSF has begun consultations to modify the NSSF Act to facilitate mortgage acquisition – celebrity jazz ug )