National Social Security Fund has issued a public notice under *Section 35(4) of the NSSF Act, Cap 230*, listing members classified as holding “dormant” accounts.
While the term “dormant” typically suggests inactivity, NSSF’s subsequent clarification reveals a critical nuance with significant implications for employers, employees, and departing foreign workers.
This publication is a statutory requirement. The Fund is fulfilling its legal obligation to notify the public and trace beneficiaries.
The “Dormant” Misnomer (Clarified):NSSF confirms standard member accounts do not go dormant due to the annual crediting of interest. The Exception is that Accounts are closed immediately after payment of either Emigration Grants or Survivors’ Benefits, as mandated by new regulations.
The “dormant” label in this notice likely refers specifically to the closed accounts where the member (or beneficiary) has been paid but potentially not fully traced for final communication, or where residual administrative steps remain.
Emigration Grants are llump-sum benefit paid to contributing members (Ugandan or non-Ugandan) who have worked in Uganda and are leaving the country permanently. Receiving this grant results in the immediate closure of the member’s NSSF account. This is the primary scenario creating the accounts listed as “dormant” in the notice.
Similarly, once Survivors’ Benefits are paid to eligible-dependents, the deceased member’s account is closed.
Action for Employers:
Awareness: understand this distinction for employee queries, especially regarding foreign nationals leaving permanently or Ugandan employees emigrating.
Exit Processes: Ensure HR exit procedures include clear communication about NSSF options, particularly highlighting the finality of choosing the Emigration Grant.
Data Accuracy: Maintain accurate employee records to facilitate NSSF’s beneficiary tracing efforts, reducing future “dormant” listings.
The Intriguing Public Angle: Beyond “Sleeping” Money;
How can an account earning interest *every year* be called dormant?”
NSSF’s Answer: It usually isn’t! The interest keeps it active. The “dormant” list primarily represents closed accounts due to major payouts (Emigration/Survivors).
Why the List?: It’s a safety net. While the main benefit was paid, there might be:
* Unclaimed residual amounts (e.g., final interest accruals).
* Essential documentation updates needed.
* A need to confirm the member’s status definitively.
Disclaimer: This information is for general awareness and does not constitute legal advice. Consult NSSF directly or seek legal counsel for specific situations.