Makerere in Court again Over Non-Payment of NSSF Remittances

2637 Views Kampala, Uganda

In short
NSSF sues Makerere University for non-payment of pension remittances worth more than Ushs 50 billion.

The National Social Security Fund has implemented its threat to sue Makerere University for failing to remit mandatory pension contributions to the fund.
The case filed at the Kampala High Court says Makerere University hasn’t remitted contributions to NSSF since 2005.  NSSF says the university owes it in excess of 50 billion shillings, making Makerere one of the top defaulters in Uganda.
According to the court papers, Makerere University has ignored numerous notifications to pay the debt.
NSSF wants court to order Makerere to provide a list of all its employees for an accurate computation of the money owed since 2005.  It also wants the particulars of each employee, their gross monthly wages and expected remittances to NSSF.
NSSF also wants court to order that the university pays all the arrears to date plus the penalties accrued.
Makerere University offers an alternative retirement benefits scheme to NSSF.  The scheme handbook says members of NSSF before March 31st 2009 still hold their benefits and are still members of the Fund. However it is silent on whether this means remittances to the Fund are withheld.
Under the law, NSSF has a statutory entitlement to receive on a monthly basis from every employer in Uganda. 15% of all employees gross salary is to be credited to the individual's account held by NSSF.
5% of this is deducted from the employees’ gross salary while another 10% is a contribution from the employer.
The university has 15 days to respond to the suit.