Big Boost! NSSF Declares 10% Interest Rate For Savers For the FY 2022/2023

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The National Social Security Fund (NSSF) hosted its 11th Annual Members’ Meeting, an event that showcased the Fund’s outstanding performance, the challenges it overcame, and its vision for the future. The meeting brought together key figures in Uganda’s financial and social development sectors and provided an opportunity to reflect on the achievements of the past year.

The event commenced with an opening prayer.

The Auditor General’s report revealed a robust financial position for the NSSF, a testament to its commitment to its members. Assets available for benefits, changes in net assets, and cash flows were all in alignment with international financial reporting standards, underscoring the Fund’s reliability and stability.

Martin A. Nsubuga, CEO of the Uganda Retirement Benefits Regulatory Authority (URBRA), commended the NSSF for its strong institutional framework and transparent stewardship. He emphasized the importance of such meetings in allowing members to hold the Fund accountable and provide feedback.

” I wish to thank the NSSF Board for providing oversight to the Fund establishing such a strong institutional framework and organizing these Annual Members’ Meetings. These meetings are a hallmark of transparent stewardship because they open a platform for you to account to members for them to provide feedback.” Martin said.

Peter Kimbowa, Chairman of the NSSF Board of Directors, shared insights into the Fund’s accomplishments, despite facing economic challenges. Notably, the Fund increased its Assets Under Management (AUM), member contributions, total realized income, and cost efficiency. Kimbowa emphasized the potential to expand coverage to 50% of Uganda’s working population, a crucial step towards strengthening the country’s social security net.

” On behalf of the NSSF Board of Directors, I would like to welcome you to the 11th NSSF Annual Members Meeting. Hon Ministers and invited guests, I would like to convey our gratitude to you for entrusting us with the leadership of the Fund. We take seriously the fiduciary responsibility to profitably manage the Fund for the benefit of the savers and the country. I would like to register our appreciation to the Managing Director and your management team, and indeed all NSSF staff for keeping a laser focus on the KPIs despite the challenging times, especially in the second half of the last Financial Year.” Peter said.

Hon. Betty Amongi, the Minister of Gender, Labor, and Social Development, emphasized the importance of not only financial performance but also social protection for savers. She encouraged the Fund to innovate solutions around health, childcare benefits, education, and affordable housing options to improve the lives of members and their dependents.

” If the Fund can innovate solutions for its members based on the 3 dimensions, during the 3 lifecycles, it will provide actual social protection. This calls for a change in the way we are conducting business at the Fund. We must keep doing what we are doing very well but be brave enough to embrace and seek out new opportunities. For instance, how can the Fund innovate around health and childcare benefits, education, and insurance solutions that offer protection across the lifecycles of members and their dependents?” Hon. Betty Amongi stated.

The Finance Minister, Hon. Matia Kasaija, acknowledged the NSSF’s remarkable performance, given the tumultuous global economic environment. He highlighted the growth of the Fund’s assets and the productivity of investments, even amid challenges like the Russia-Ukraine war and market volatility. He then declared an impressive interest rate of 10% for members for the 2022/2023 financial year. This rate, higher than the previous year’s, reflects the NSSF’s commitment to providing a strong return on members’ investments.

” In 2013, the Fund made a commitment to pay savers a real annual return, that is, at least 2 percentage points above the 10-year rate of inflation. I am happy to note that the Fund has consistently delivered on this commitment. In accordance with section 35(2) of the NSSF Act, as amended, I hereby declare an interest rate of 10% 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. This new rate equals UGX 1.591 trillion shillings in total. Last Financial Year, the 10-year average rate of inflation was 4.2%. The rate I have just 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%. To the members, thank you for trusting the NSSF with your money. The Fund is an institution we are proud of.” Hon. Matia Kasaija said.

The meeting painted a bright picture for the future, with a focus on Vision 2035. The NSSF’s dedication to innovation, expansion, and social protection promises to enhance the financial security and well-being of all Ugandans.

As the NSSF continues to evolve and adapt to changing times, its members can look forward to a secure and prosperous future, knowing that their investments are in capable hands.

 

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