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Tag: NSSF Act

  • NSSF defends its performance and real estate investments before Parliament Committee

    NSSF defends its performance and real estate investments before Parliament Committee

    The National Social Security Fund (NSSF) has defended its performance over the last 10 years before the Parliamentary Select Committee investigating the National Social Security Fund (NSSF) and the appointment of the Managing Director and Deputy Managing Director.

    The Committee is chaired by Hon Mwine Mpaka, the Member of Parliament for Mbarara City South. Other members of the committee include Workers MP Hon Charles Bakkabulindi, Mr. Karim Masaba (Industrial Division, Mbale City), Mr. Michael Kakembo (Entebbe Municipality), Ms. Fortunate Nantongo (Kyotera District Woman), Ms. Laura Kanushu (Persons with Disabilities), and Mr. Amos Kankunda (Rwampara County).The NSSF Ag. Managing Director Mr. Patrick Ayota said that the Fund’s growth in asset base, contributions, benefits, and membership growth has been growing steadily over the last 10 years.

    Ayota was appearing before the committee alongside the Fund’s senior management team to interface with the committee on Fund’s performance, governance, and stakeholder involvement in the Fund’s decision making among others.

    “In 2010, the Fund was worth UGX 1.7 trillion in Assets under Management. As at end of FY 2021/22, the Fund was UGX 17.3 trillion in assets, a 10-fold growth. This is a growth of 10x. As of December 2022, the Fund’s assets stood at UGX 18.8 trillion,” Ayota said.

    The NSSF Board, led by Dr. Peter Kimbowa had earlier in the day interfaced with the same committee.Dr. Kimbowa was quizzed about the Ushs 6 billion that the Minister of Gender, Labour & Social Development allegedly asked the Board Chairman in a letter to provide for in the Fund’s budget for the Financial Year 2022/23. He told the committee that the Minister’s letter was irregular.On contributions, Ayota said the member contributions have steadily increased from annual collections of Ushs 556 billion in 2012 to Ushs 1.491 trillion in 2022.On member recruitment, Ayota said that the current membership size stands at 1.3m with a historical annual growth rate of 140,000 more members, while the current employer base is 27,628 with a historical annual growth rate of 2,685 more employers.Regarding real estate, Ayota clarified wrong information that the Fund’s real estate investments do not provide a return to members and are out of reach of the majority of NSSF savers. He said that the Fund earns rental income and capital gains from its investments in real estate. He also said that the Fund’s Real Estate offering targets 3 groups of consumers.

    These are the high-end income bracket catered for under the Citadel Place Project (sold out), Solana Lifestyle & Residences – Lubowa Housing Project; middle-income bracket – catered for under Kyanja Housing Project and Temangalo Housing Project, and affordable Housing income bracket – catered for under the Temangalo Affordable Housing Project (with starting house price of Ugx 90m).

  • Finally!! NSSF in support of mid-term Benefits to members 

    Finally!! NSSF in support of mid-term Benefits to members 

    The global outbreak of COVID-19 has disrupted all economies around the world causing economic stagnancy. The rapid spread of the virus has posed massive health, economic and social challenges to everyone.

    The leaders implemented measures including the complete lockdown of certain parts of the economy. These measures have helped Uganda to avoid the deadly human toll seen in other countries.
    NSSF Uganda MD: Richard Byarugaba

    However, the avoidance disruption to economic activities has raised unemployment levels in recent months. This has caused heightened levels of stress among members of NSSF which have lost means of their livelihood.

    This has brought to the forefront the role of NSSF to it’s members. Understandably, some politicians and sections of the general public have been calling for the Fund to pay out a portion of accumulated contributions to its members.
    The NSSF said they the pain and understand the public outcry.
    Following this outcry, NSSF shared with their line minister their undertaking of the worst case scenario of the economic implications of the proposal to pay out an unplanned 20% of the Fund to its members. “We owed it to the minister, our members and all Ugandans to be honest in the analysis to facilitate the process of making the right decisions that need to be made,” NSSF MD said.
    Understandably, this analysis may have given a wrong impression that NSSF does not in any way support mid-term benefits.
    This is far from the truth. In the final paragraph of the letter to the minister, NSSF reiterated their support for planned mid-term benefits, that are embedded within the NSSF amendment Bill before parliament.
    It must be clarified that the current legislation, NSSF Act Cap 222, that governs the Fund’s operations does not provide for mid-term benefits and regrettably has limited their ability to offer new benefits to its members.
    Before the outbreak of COVID-19 pandemic, together with various stakeholders especially the Trade Unions, the Fund strongly supported amendments to the NSSF Act which among other changes provides for additional benefits to the existing age benefits, invalidity benefit and survivors benefit.

    The proposed amendments are currently before parliament. The purpose of the additional benefits is not only to provide a degree of income security when faced with life’s contingencies such as today’s pandemic but also safeguard the retirement goals of our members.
    Once the bill is passed into law, the Fund will be able to do the following, among others:
    Extend social security coverage to more Ugandans
    Improve the adequacy or value of benefits to their members
    Provide mid-term benefits to members during their working life that cover short-term to long-term needs such as unemployment/income replacement, education, medical and housing.
    NSSF, therefore, appeal to the Parliament of Uganda to fast track the NSSF Amendment Bill.
    “We encourage you, our member, through your MP to join us in calling upon the August House to urgently pass the law. The Fund remains committed to you, our member and we will never tire from promoting and protecting your interests,” NSSF MD Richard Byarugaba said.