NSSF’s member fund grows to Shs11.3 trillion

The National Social Security Fund (NSSF) asset under management has increased by 13.1 per cent from Shs9.9 trillion in June 2018 to Shs11.3 trillion at the end of June 2019 mainly driven by increased contributions and interest income.
Presenting the financial results this morning to journalist at the Fund’s head office in Kampala, the NSSF managing director, Mr Richard Byarugaba said members’ contributions increased by 15 per cent from Shs1.0 trillion to Shs1.2 trillion reflecting a growth of 15 per cent.

“Our members should be confident about the health of the Fund in the short, medium and long term as the Fund remains financially stable and growing. We have the ability and means to withstand any shock in the economy, given our aggressive but prudent investment approach and our investment diversification strategy,” he said.

Mr Byarugaba said the amount of money paid in benefits increased by Shs25 per cent from Shs360 billion to Shs450 billion, adding that the average benefit turnover time in 2018/19 remained flat at 8 days.
About the NSSF’s current membership, Mr Byarugaba said there are 1.981 million, while active members are 830,000 who contribute to NSSF every month.
“Employers 46,000 but the active employers are 21, 000,” he said.
NSSF on June 12 2017 launched a Voluntary Membership Plan that provide employers and workers that are not compelled by the mandatory provisions of the NSSF Act the opportunity to voluntarily save for their retirement.

Mr Byarugaba said as of June 2019 the number of voluntary members was standing at 15,000.
On monthly contribution by the members, he said the contribution to the Fund is Shs102 billion per month.
Mr Byarugaba said the future of the Fund remains bright and they will continue to invest member’s money in instruments that are defensive and growth in nature.

Every the NSSF pays interest to its members from the various investments it makes in Uganda and in the East African region.
Mr Byarugaba said the minister of Finance, Planning and Economic Development, Mr Matia Kasaija will next week declare the interest the NSSF plans to pay to its members for the last financial year.
“Since fiscal year 2012/13, we have consistently delivered on that commitment. I am therefore, extremely confident that the minister will declare a rate that will achieve and even surpass this target. This promise which we started fulfilling in the FY 2012-13 will be maintained this year,” he said.