Life’s milestones often bring significant financial decisions and considerations. Questions about retirement schemes, early retirement possibilities, and property investments frequently arise. To shed light on these topics and more, I sat down with Mr. Samson Kamugisha, a member of the Board of Trustees for the NWSC Provident Fund, in an exclusive one-on-one interview.
The NWSC Provident Fund is a retirement scheme designed to provide financial security for its members. During our discussion, Mr. Kamugisha shared valuable insights into the workings of the fund and answered several key questions.
As a member of the NWSC Provident Fund, it is crucial to understand your responsibilities. Firstly, members have the duty to nominate trustees who will represent them on the Scheme Board of Trustees. Additionally, it is essential to remit monthly contributions and track retirement benefits periodically. Understanding the provisions of the Scheme Trust Deed and Rules, as well as the URBRA Act 2011, is also a responsibility. Members must nominate beneficiaries and provide the necessary information requested by the trustees.
Note that, informing the trustees about the intention to withdraw benefits upon leaving the service of the sponsor and selecting the method of receiving retirement benefits are important aspects. Lastly, members can choose to make Additional Voluntary Contributions to enhance their retirement benefits.
One of the key areas we discussed was the declaration and distribution of interest. Interest is determined at the end of each financial year through an audit process that assesses the returns earned by the Scheme. The net returns on investments are then distributed proportionately among all the members of the Scheme.
The topic of retirement benefits also emerged, and Mr. Kamugisha clarified the circumstances in which these benefits become available. According to the Scheme Trust Deed and Rules, as well as the URBRA Act 2011, retirement benefits can be received under the following circumstances: normal retirement at the age of sixty (60) years, early retirement before sixty (60) years, retirement on medical grounds at any age, resignation, reorganization, or redundancy, termination of employment contract, or in the unfortunate event of death in service.
In the case of a member’s death while in service, it is essential to have an updated list of nominated beneficiaries. Members must ensure that the Nomination Forms are regularly updated to reflect any changes in circumstances. If a member dies prematurely, the beneficiaries listed on the Nomination Form will be contacted by the trustees. The beneficiaries can then apply to receive the total accumulated benefits as per the proportions indicated on the Nomination Form. If no Nomination Form was completed, the trustees may require Letters of Administration issued by a competent court to determine the claimants of the deceased member’s benefits.
The interview also addressed the concept of nominating beneficiaries. Nominating beneficiaries involves completing a form to indicate the individuals to whom the trustees should pay the benefits in the event of the member’s death. The nominated beneficiaries can include family members such as spouses, children, parents, siblings, or legally recognized dependents. By nominating beneficiaries, members ensure that the payment process can be carried out promptly for the benefit of their dependents.
Members may change their beneficiaries at any time by completing a new Beneficiary Nomination Form and submitting it to the trustees. In the event of a member’s death, the trustees will refer to the most recently completed Nomination Form.
For those interested in obtaining a nomination form, they can be obtained from the trustees or the Scheme Administrator. The forms serve as a crucial step in ensuring the smooth processing of benefits in the event of a member’s demise.
One inquiry raised during the interview was whether the Scheme could issue Membership Cards to facilitate the tracking of retirement benefit payments in the event of a member’s death. The answer was affirmative. Currently, Membership Cards have been issued to members who joined the Scheme between its inception in October 2019 and June 30th, 2022.
However, some members who joined during this period have yet to receive their Membership Cards. Mr. Kamugisha explained that the cards were distributed through regional Human Resource Officers. It is possible that members who were transferred or deployed to another branch or area did not receive their cards during the distribution process. Members who were transferred are encouraged to contact their previous branches or areas to confirm the status of their Membership Cards.
If a Membership Card cannot be tracked or contains errors, members are advised to register their names with the Human Resource Officer in their current region. This information will be forwarded to the Board of Trustees for resolution. Additionally, the Board of Trustees is in the process of issuing Membership Cards to members who joined the Scheme in the current Financial Year, which spans from July 1st, 2022 to June 30th, 2023.
The NWSC Provident Fund offers its members a pathway to a secure financial future. By understanding their responsibilities, the process of nomination and distribution of benefits, and the importance of Membership Cards, members can navigate the scheme with confidence. The NWSC Provident Fund is committed to serving its members and ensuring the smooth operation of the retirement scheme.
Armed with this knowledge, members can make informed decisions regarding their retirement and financial well-being, ensuring a bright future ahead.
