By Wasswa Deo
The National Social Security Fund (NSSF) has collected more than Ugx 100 billion in contributions from its members in the month of June 2017, the Managing Director Richard Byarugaba has confirmed.
It is the first time that the Fund has hit the Ugx 100 billion mark in contributions in a single month. The previous highest mark was Ugx 85 billion that was collected in June 2016.
“This UGX100 billion plus contributions collection performance in a single month is the best ever in the history of the Fund. 2016/17 has been a challenging financial year, but we have come through with yet another collections milestone that is above our monthly collections target of Ugx 77 billion. I applaud all staff at the Fund for their tireless efforts,” he said.
Byarugaba added that he is optimistic the Fund will better last year’s overall financial performance, in spite of the challenges the economy faced in the just concluded financial year, which have had an effect on the business environment.
As a result, the Minister of Finance, Planning & Economic Development Matia Kasaija declared an interest rate of 12.3% interest, worth over Ugx 606 billion credited to NSSF members’ accounts.
Byarugaba could not confirm the new interest rate that the Fund will pay, but said that it will be declared by the Minister, in accordance with the NSSF Act.
The declaration by the Minister will happen possibly in September this year and will depend on how well the Fund has performed. However, he confirmed that the rate will not be less than the 10 year average rate of inflation plus 2 percentage points, which is in line with the FUND’s commitment to pay its members a real return.
NSSF invests in fixed income, real estate and equities. It is the largest institutional investor on the Uganda Securities Exchange (USE) and one of the largest domestic holders of Government of Uganda debt.