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Tag: Richard Byarugaba

  • Byarugaba refutes Amongi’s allegations of mismanagement of the workers’ Fund

    Byarugaba refutes Amongi’s allegations of mismanagement of the workers’ Fund

    Richard Byarugaba, the former Managing Director of the National Social Security Fund (NSSF) has refuted claims of mismanagement of the Fund as alleged by Hon. Betty Amongi, the Minister of Gender Labour and Social Development.

    Byarugaba was on Friday 3rd February, appearing before the select Parliamentary committee investigating mismanagement claims at the Fund with a focus on issues like corporate governance of the Fund, the appointment of the Managing Director, and safety of savers’ money.

    He told the committee that the Fund’s performance had improved in the last ten years, growing at a higher rate than the national GDP. “In 2012 the Fund was less than 4% of the country’s GDP. Currently, NSSF is more than 10.6% of GDP,” he said.

    He continued to say that in the last ten years, the growth rate of member registrations had oscillated between 17% per annum, compliance had increased from 40% to 60%, annual contributions indicated an upward trajectory and assets grew to 17.3 trillion in June 2022.On the return to member savings, Byarugaba told the committee that the Fund was paying double digit interest rate above inflation over the last ten years.

    “Previously, NSSF wasn’t paying above inflation; the average interest payout was 6.27% while inflation was at 6.3% . Over the last ten years, we have been paying double digit interest rates with inflation at 3.65%. Meaning that we are preserving member funds and giving real return to members. The highest interest rate paid to members in the history of the Fund is 15% that we paid in 2018.”

    NSSF’s current management led by Patrick Ayota, the Ag . Managing Director had reported the same growth of the Fund when they appeared at the committee earlier in the week, contrary to allegations of unsatisfactory performance by Hon. Betty Amongi, Minister of Gender, Labour and Social development. NSSF is supervised by the Gender ministry and the Finance Ministry according to the new NSSF Act 2021. Whereas the Gender Ministry is in charge of operations at the Fund, the Finance Ministry oversees its investments. Byarugaba also refuted claims of non-participation in the national development agenda by NSSF saying that the Fund provides government with 40% of its domestic borrowing.

    “For every 10 shillings the Ministry of finance borrows from the public to develop roads, electricity and the health sector, 4 shillings is from the NSSF. If this doesn’t show participation in national development, then I don’t know what does!” Byarugaba said.

    On the contentious shs6bn, Byarugaba said that Hon. Amongi had asked the Fund to provision for the money purportedly to support implementation of the new NSSF law and yet this was already provided for in the Fund’s overall operations budget for the financial year 2022/23.  “The Minster’s letter of 16th June,2022 to the Fund clearly shows that she wanted to handle the shs6bn,” Byarugaba told the committee.

    Regarding the alleged purchase of Nakigala land at shs400bn as part of the Fund’s real estate investments, Byarugaba clarified that the amount was provisioned as total budget estimates for all strategic land purchases for the FY 2022/23 to purchase two land assets and that the amount wasn’t entirely for Nakigala as alleged by the Minister. On the shs40bn budget provision for the Grain Council, Byarugaba clarified that the Fund had declined to partner with the council due to disagreement in implementation on the back of unclear accountability measures.

    The minister had instead looked at this as “insubordination” from Byarugaba.The Committee is chaired by Hon Mwine Mpaka who is 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).

  • NSSF has money for mid-term payments

    NSSF has money for mid-term payments

    The National Social Security Fund (NSSF) reassures its members and the country that it has funds to meet mid-term payments when the NSSF Amendment Bill is passed by Parliament and assented to by the President.

    Section 24A of the Bill provides that “a member who is forty-five years of age and above and who has made contributions to the Fund for at least 10 years is eligible to mid-term access to his or her benefits of a sum not exceeding 20% of his or her accrued benefits”.Our projections show that about UGX 902.5 billion is required to pay members who qualify for 20% of their savings as proposed in the Bill.

    An additional UGX 900 billion to pay members who qualify for NSSF benefits as provided for in the existing Act is also required.To efficiently process the 20% mid-term payments, the Fund has commissioned an upgraded Pension Administration System, which will be installed on November 1, 2021.

    The NSSF Amendment Bill has our unqualified support because it is a progressive piece of legislation that will open many opportunities for the Fund, its members, and the country at large.

    The Fund is prepared to implement the NSSF Amendment Bill in its entirety as soon as it is passed into law, and attendant Regulations published.

  • Byarugaba has tipped the Eastern region on the new law

    Byarugaba has tipped the Eastern region on the new law

    The National Social Security Fund (NSSF) Managing Director, Richard Byarugaba, has tipped the workers in the Eastern region on the components of the NSSF Amendment Bill.

    This, he said, will permit NSSF to introduce relevant products, promote saving for old age and boost growth of the economy

    The Fund’s Managing Director made these remarks while speaking to hundreds of workers who had turned up for fourth Eastern regional employer’s meeting held at The Source of the Nile Hotel in Jinja town on Tuesday.

    The NSSF Bill 2019, has a raft of proposals, among which seek to expand social security coverage through voluntary contributions, provide midterm access to benefits, provide for the deference of taxes on contribution and empower the board to introduce products.

    “We expect that in the course of this year the Bill should leave the committees of finance and gender come back to the floor of Parliament and there should be a discussion so that it is passed. Failure to do it, the benefits that the country and members would be getting by increasing the saving products and investment opportunities are being derailed,” Mr. Richard Byarugaba, NSSF Managing Director said.

    Under the current law, only companies with more than five employees and above are eligible to register and save with the fund. Saver’s monthly contributions and investment income are taxed while the benefits are accessed after one has clocked 55 years.

    However, the proposed amendments, which were first tabled before parliament last year, kicked up storm with some of the Ugandans questioning some provisions that government directly borrows from the NSSF.

    “If you have access to your MPs’ tell them to go Parliament and pass the proposed law because it will make sure that we give the relevant products as I mentioned earlier,” Mr. Byarugaba said.

  • NSSF – Monitor Expo to equip university students with financial literacy during career expo

    NSSF – Monitor Expo to equip university students with financial literacy during career expo

    The National Social SecurityFund (NSSF) in partnership with Daily Monitor have today kicked off a month-long career expo for university students countrywide. The expo, now in its 9th year, is intended to prepare students for the work place, equipping them with skills and knowledge to increase their employability.

    Addressing media at the launch of the expo at Makerere University Business School, NSSF Managing Director, Richard Byarugaba said that this year’s expo will focus on entrepreneurship and financial literacy to prepare them to be financially independent.

    Under Financial literacy, students will obtain knowledge on Personal finance management with topics that include Debt Management, Positioning oneself for higher Pay, and Habits of the financially intelligent.

    “This is in line with the NSSF’s overall Financial literacy program, where we offer professional financial and investment advice to our members to enable them make better decisions when they get their retirement funds. We have therefore tailored the program to be relevant to university students during the expo.”  Byarugaba said.

    Other topics for discussion at the expo will include Self-start ups, a session on Today’s job market and career advice from the best employers in the country.

    The Expo will be held in 11 universities countrywide at Makerere University Business School, Kyambogo University, Makerere University, Ndejje University, Nkumba University, YMCA, Uganda Martyrs University Nkozi, IUIU, Gulu University Mutesa 1 University and Bishop Stuart University.

    The Nation Media Uganda Managing Director, Tony Glencross said, “The expo gives us an opportunity asmedia to bring to life the career advice we give weekly through our Friday paper. Through this platform, we are able to have an interactive session with our readers, especially the university students, to prepare them for the job market and life after university.”

    Speakers lined up for the interaction with the students include financial literacy experts, employers from top organizations, and proprietors of successful local investments.

    Over 10,000 university students are expected to attend the expo countrywide this year.

  • NSSF to award most compliant employers at the Annual Members’ Meeting

    NSSF to award most compliant employers at the Annual Members’ Meeting

    The National Social Security Fund (NSSF) will recognise and award the most compliant employers in paying their employees’ contributions during its 3rd Annual Members Meeting (AMM) scheduled to take place on October 21, 2015, Richard Byarugaba, NSSF Managing Director has announced.

    The Fund holds the meeting annually to update its members and other stakeholders on the state, performance, goals and outlook of the Fund. It’s also a forum where the Fund receives feedback and responds to concerns from members through an interactive session.

    Richard Byarugaba, Managing Director National Social Security Fund (NSSF)

    Richard Byarugaba, Managing Director National Social Security Fund (NSSF)

    “This is in line with our commitment to transparency and accountability to our members, stakeholders and the general public. We will report to the owners of the Fund our performance for the Financial Year 2014/2015, and also give a perspective of where we want to be over next 10 years, Byarugaba said.

    At the meeting, NSSF will recognise the most complaint contributors through the Employer Compliance Awards. Up to 25 institutions and companies will be awarded in different categories including the best employer per branch across the Fund’s 19 branches. [adrotate banner=”3″]

    “These awards are held every year, to honour employers who fulfill their social security obligations. We will award basing on the 360 degrees compliance audit. In other words, the winners must have consistently paid contributions for their employees in time and in the right amounts.

    We would like to encourage all employers to pay their contributions, it is not only their obligation, but also makes business sense,” Byarugaba added. The Fund currently receives contributions from over 12,000 employers and has a membership of about 1.6 million contributors.

    Edrinnah Ddumba Mbote, the Public Relations officer NSSF

    Edrinnah Ddumba Mbote, the Public Relations officer NSSF

    Byarugaba also said that the Auditor General, Mr. John Muwanga, will present the Fund’s audited accounts for the last financial year. The Fund has over the last 5 years received an unqualified opinion from the Auditor General, which means that, the Fund’s financial records and statements are appropriately presented, and in accordance with Generally Accepted Accounting Principles.

    On September 29, 2015, NSSF declared an interest rate of 13% on its member’s savings, for the Financial Year 2014/15, up from 11.5% in the last financial year. In monetary terms, the rate translates into a total of shs514 billion for the fund’s 1.5 million members up from shs366 billion.