The National Social Security Fund (NSSF) will pay its savers an interest rate of 12.15% for the financial year 2020/21.
This has increased from last year’s 10.75%
Based on the rate declared, a total of shs1.52 trillion will be shared among members, higher than the shs1.14 trillion that was paid to members in the previous financial year.
In his speech at the 9th annual members meeting held on Wednesday, the Minister of Finance, planning and Economic Development Matia Kasaija commended NSSF for the resilience despite the covid-19 pandemic that has left the entire world’s economy crambling.
“As provided for in the NSSF Act, this new rate will be calculated and credited on the balance
outstanding on the members’ accounts as of 1st July 2020,” Kasaija said.
“Uganda was no exception, with the economy growing at 3.3% in the financial year 2020 to 2021. To register any growth is therefore very commendable. For over six years that I have been Minister of Finance, Planning and Economic Development and charged with overseeing the Fund, it has registered growth every year across its key performance indicators. I congratulate the Fund and its members upon this stellar performance registered during the last financial year. The performance is commendable given that the COVID-19 pandemic has had massive economic and social effects across the globe.”
Mr Kasaija said the growth of the Fund is never an accident but rather a deliberate vision and strategic focus.
According to performance highlights,the Fund’s assets increased by 17% from shs13.3 trillion to
shs15.5 trillion and comprehensive income increased by 25% from shs1.47 trillion to shs1.84
“The growth in income interest can be attributed to the increased return on Treasury Bonds in the fixed income portfolio, dividend income, and property sales,” Richard Byarugaba, NSSF Managing Director said while presenting the performance highlights at the annual members meeting.
Dr. Peter Kimbowa, the newly appointed Chairman Board of Directors, reassured members that the
Fund would continue to create value for them and give them good return higher than the ten year
“ As a new board, our focus for this financial year will be majorly to conclude legislative reforms ,ensure prudent investments and to ensure that our staff are prepared for a different operating environment that will be ushered in by the legislative reforms. “ he said.
The new rate represents shs 1.52 trillion shillings which is above the 10 years average rate of inflation which currently stands at 5.43%.
On the new NSSF Bill currently in Parliament, Kasaija tasked the Managing Director, Richard Byarugaba and the board to ready themselves to tap into the opportunities that are likely to manifest when it is enacted into law.
He stressed that if passed into law, the bill will ensure extension of coverage as every employer including those with less than five employees will be eligible to contribute to the Fund whereas the new law will give mandate to NSSF to innovate new benefits for its members but also have a latitude to collect more savings from mandatory members in form of voluntary basis.
He added that these present an opportunity for the Fund to grow but urged that there is need for preparation.
“The challenge, I throw back to board of directors and the Managing Director is to ensure the Fund is ready to tap into the opportunities. I pledge my support in ensuring that this legislation is fast tracked. There is consensus on almost every clause, and the Bill will be beneficial for all,”Kasaija said.