NSSF savers to make own investment decisions
Mr Richard Byarugaba, NSSF’s managing director. PHOTO BY CHRISTINE KASEMIIRE
What you need to know:
- This means if you have Shs10m in your fund, you will, through the portal, give instructions to NSSF on how it should invest your money.
- A notice would then be given to the saver on an annual basis on how much return they have accrued as well as proof that money was invested as directed.
- NSSF invests in three different asset classes; fixed income, equities and real estate.
Savers in the National Social Security Fund (NSSF) will soon have a chance to determine where their savings are invested.
Speaking during a regional employers’ meeting in Lira at the weekend, Mr Richard Byarugaba, NSSF’s managing director revealed that the scheme will give a chance to savers to determine how their savings are invested.
“We would give them a portal in which to give us their feedback on how they want us to invest their money,” he said without revealing when it should be expected.
This means if you have Shs10m in your fund, you will, through the portal, give instructions to NSSF on how it should invest your money.
A notice would then be given to the saver on an annual basis on how much return they have accrued as well as proof that money was invested as directed.
NSSF invests in three different asset classes; fixed income, equities and real estate.
However, because of the nature of complexity of investment, Mr Byarugaba said that advice will be given to the savers to avoid poor investment decisions.
Mr Byarugaba was responding to a question from a one Eunice in the audience who asked if savers can determine where their money is invested.
The dream for savers, however, might take longer to realise as Mr Byarugaba revealed that the Fund is constrained by advancement in technology.
“Currently, the reason why we cannot do it is because our technology is not yet up-to-date. But we are working on that,” he explained.
NSSF has held regional employers’ meetings for three years in Gulu, Mbale and Lira.
The engagements, Mr Byarugaba said, are a form of accountability to promote transparency in the operations of the fund.
However, people in the north were more concerned about the fund investing in Northern Uganda particularly Lira.
In his response, Mr Byarugaba said NSSF has currently acquired land in Gulu where it will build an office and later venture further in the region.
Compliance
Mr Geoffrey Waiswa, NSSF head of business emphasised the need for compliance amongst employers explaining the consequences of non-compliance.
According to the NSSF law, an employer found to be non-compliant in remitting employees’ money to the fund is culpable of a 10 per cent fine in addition to the 10 per cent contribution he makes to employees.
