After a protracted leadership row Uganda’s National Social Security Fund (NSSF) has declared 10% interest rate for its members for the financial year 2022/23.
The 10% payment accounts for UG.Shs. 1.591 trillion . The earned interest will be credited on each members account this week .
Finance Minister Matia Kasaija, while announcing the annual interest rate at the Fund’s 11th Annual Members Meeting held at the Kampala Serena Hotel ,thanked the NSSF management for posting a good return on investments under a difficult period characterized with management turmoil and the war in Ukraine.
“I am especially glad that the Fund’s assets registered growth again from Ug.shs. 17.26 trillion in Financial Year 2021/22 to Ug.shs. 18.56 trillion in Financial Year 2023/24. Many naysayers did not imagine the possibility of growing this Fund to Ug.shs. 20 trillion. That you will achieve that strategic objective a year ahead of schedule is laudable,” Kasaija said.
Ayota NSSF MD
“The second KPI I am interested in is the money you generated during the year because that shows the productivity of the investments that I approved during the year. I am therefore glad that the total realised income earned increased by 15% from Ug.shs 1.9 trillion in the Financial Year 2021/22 to Ug.shs 2.2 trillion in the Financial Year 2022/23.”
The interest rate declared is 5.8% above the 10-year average, which means that the Fund has once again delivered on its promise and surpassed it by almost 3.8%. As provided for in the NSSF Act, as amended, this new rate will be calculated and credited to the balance outstanding on the members’ accounts as of 1st July 2022.
Mr.Martin Nsubuga, CEO of the Uganda Retirement Benefits Regulatory Authority (URBRA) said that retirement benefits schemes hold Ug.shs.21.6 trillion of assets under management, out of which NSSF holds Ug.shs.18.5 trillion, while other occupational schemes hold Ug. Shs.3tn.
Betty Amongi, the Minister of Gender, Labour and Social Development challenged the new NSSF management to create more solutions that will deal with social protection in line with the International Labour Organization (ILO).
Amongi said that her ministry is going to develop and issue new regulations to operationalize several benefits/ products that the Fund was innovating to provide more value to members under the amended NSSF Act.
The NSSF new Managing Director Patrick Ayota said that he cost-to-income ratio improved from 11.7% in the Financial Year 2021/22 to 9.4% in the Financial Year 2022/23; cost management – our cost of administration reduced from 1.18% of total assets to 1.02%, rate of compliance slightly improved from 55% in Financial Year 2021/22 to 57% in Financial Year 2022/23.
He added that customer satisfaction increased from 83% in the Financial Year 2021/22 to 86% in the Financial Year 2022/23 and staff satisfaction slightly reduced from 85% in the Financial Year 2021/22 to 82% in the Financial Year 2022/23 among others.
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