NSSF posts mixed results, records decline in member registration
NSSF registered mixed performance but the size of the Fund grew to Shs14.62 trillion during the period ended March 31, 2021. Photo | File
What you need to know:
- The drop signals a slowdown in the wider economy that has been ravaged by Covid-19 forcing employers to cut salaries and employee numbers as well as slow down new recruitment.
National Social Security Fund (NSSF) registered a huge drop in members registration, with the numbers dropping by 58,436 for the period ended March 31.
The drop signals a slowdown in the wider economy that has been ravaged by Covid-19 forcing employers to cut salaries and employee numbers as well as slow down new recruitment.
During the period, according to the Fund’s transparency statement released early this week, registration of new members fell to 84,049 for the period ended March 13 compared to 142,485 members that had been registered in the same period ended March 31, 2020.
Registered employers fell by 485, signaling the impact of Covid-19 on employment and business performance in the period between March 31, 2020 and March 31, 2021.
The transparency statement indicates that registered employers dropped to 1,439 for the period ended March 31, 2021 from 1,924 in the same period in March, 31, 2020.
However, the statement does not show how the drop in performance had affected the total of members over the period.
Covid-19 has slowed down the performance of the economy even as projections have created optimism for a recovery of some sectors, which is expected in the later part of the year.
However, some sectors, such as tourism, hotel and accommodation are expected to take a little longer before they can fully recover, amid a resurgence of Covid-19 infections.
During the period, member contributions suffered a 1.1 per cent drop, falling to Shs965b from Shs975b during the period ended March 2020.
The statement also noted a drop in comprehensive income due to foreign exchange losses that wiped out at least Shs207.3b.
The Fund, which is Uganda’s largest contributory scheme, registered total comprehensive income of Shs31.1b compared to Shs35.2b in March 2020.
However, during the period, NSSF registered a 15.5 per cent growth in the size of the Fund from Shs12.66 trillion in March 2020 to Shs14.62 trillion due to continued expansion in investment assets and contributory collections.
Interest income increased by 15 per due to better returns on the fixed income interests.
However, the Fund noted some retrogression in the period through which a member can access their benefits with the processing period growing to an average of 10 days as at the end of March 2021 from just seven days in March 2020.
During the period to March 31, 2021, a total of Shs558b was paid out in benefits to qualifying members, of which 98 per cent was paid to living members while 2 per cent was paid out as survivor benefits.
This was a 29.6 per cent growth from Shs430.5b that was paid out for the period ended March 2020.
Value of shares
NSSF’s value of share holding in listed companies during the period dropped to Shs93b down from Sh108.4b in the same period last year while investments in securities held to maturity stood at Shs11.1b up from Shs9.9b.
Loans and advances at amortised cost stood at Shs14.4b down from Shs16.9b in March 2020.
Cost of operation improved by 1.02 per cent, due to better cost management and low expense due to Covid-19 with some expenses deferred.
