Workers’ savings now Shs3 trillion

President Museveni receiving a gift from Petrov Georg, the Vice President of the Chamber of Commerce and Industry of the Government of Russia as the First Lady looks on after a meeting in Moscow on 10th December, 2012.  

In Summary

Changing face. National Social Security Fund also celebrates milestone with new look, symbolising its renewed commitment to be more relevant and beneficial to its members.

The National Social Security Fund (NSSF) has accumulated Shs3 trillion in cash and assets, up from some Shs2.7 trillion the Fund had in the last financial year, it announced yesterday.

The Shs3 trillion milestone comes at the back of a strong performance by the fund in the last 24 months.

Members’ compliance increased from 63 per cent to 73 per cent, and monthly contributions went up by 71 per cent from Shs24.5b to Shs42 billion.

Members’ balances rose by 70 per cent from Shs 1.7 trillion to Shs2.9 trillion.

Overall, the Fund has been growing by Shs50b every month. The good rally comes barely two months after the NSSF increased its savers’ interest rate to 10 per cent for this financial year, up from six per cent the previous financial year.

Celebrating the milestone, the NSSF has rebranded itself to have a new corporate identity; a blue and green logo with slanting (forward bended) fonts as well as a new tag line- ‘A Better Future’.

Managing Director Richard Byarugaba said the new look symbolised a renewed commitment to be more relevant and beneficial to its members.

“We are not only changing our look and feel, but the change of our visual identity symbolises my commitment, your commitment and our commitment to deliver a better future for our growing membership,” Mr Byarugaba said.

He added: “Delivering a better future starts today and we are already doing this through payment of better returns, great customer care and transparency. In the liberalised environment, we will be able to leverage our strength, expertise and experience to stay as competitive as possible.”

Saving face

The Fund has in the past been involved in a series of controversies that have seen many label it a “madman” (read gangster) business. One of the scandals that hurt the Fund’s image and exposed it to criticism was the 2008/9 Temangalo land deal, in which it bought hundreds of acres at an inflated price of Shs11 billion.

But yesterday, Mr Byarugaba said the “madman” symbol was now a thing of the past as the Fund had made great changes and was now delivering its promise to members.

The chairman of the National Organisation of Trade Unions, Mr Wilson Owere, said the NSSF should initiate life-changing investments that will give savers more incomes.

“The NSSF has grown richer. Ever since workers’ representatives were put on the board three years ago, its management and general performance have improved. We feel this is a big achievement and hope that NSSF will invest more wisely to accumulate more wealth and pay it’s members more.”

The NSSF continues to be a monopoly pension fund, with about 450,000 private sector employees saving with it.

However, its monopoly days are numbered, following the appointment of board of directors in August, who will put in place the Uganda Retirements Benefits Regulatory Authority to oversee the liberalisation of the pension sector.
nkalungi@ug.nationmedia.com