NSSF is partnering with commercial banks to collect members’ social security contributions starting this month, Managing Director Richard Byarugaba has announced.
Speaking at a press conference at Workers House, Byarugaba said that outsourcing contributions collection is the most cost effective way of handling NSSF collections.
It will provide a convenient solution to employers to remit monthly social security contributions of their employees at a one stop centre.
 “Employers have been paying contributions and thereafter submitting the returns to our NSSF Branch offices. This has not only been delaying the process of receipting and crediting members’ accounts but is also inconveniencing to the employer.
With this new initiative, the banks will collect the contributions and electronic schedules from the employer and securely transmits them to NSSF,” Byarugaba said.
He appealed to employers to use this channel as it is more efficient and faster. “You will make only one transaction instead of moving to our offices to make several transactions,” he said.
He added that the new system will not only enhance the Fund’s efficiency and ensure cleaner data, but will benefit the Fund by freeing more time for the Fund to grow the business.
“More business time will be freed for NSSF Relationship Officers that are currently engaged in rigorous tasks of chasing for schedules, and also for the data capture staff.
This effort would then be concentrated on growing the business rather than doing work that can be automated.”
“This is one of the innovations we promised to do when I came to Fund, now we are beginning to fulfill this promise. It is one of the various planned initiatives the Fund will introduce in line with our mission and vision to focus on our customers,” he said.
Byarugaba added that the Fund will have initial 2 year contracts with the banks, after which they will be reviewed and elect whether to renew or terminate depending whether the banks meet the Fund’s terms.
Discussions with other banks are at an advanced stage to come on board.
The Fund is launching the new process with Standard Chartered Bank which responded promptly when he Fund introduced the idea, Byarugaba said.
Click Banks Collections Solution process flow for a comparison of the old and new contributions collection process
|
