The National Social Security Fund (NSSF) will hold its second Annual Members Meeting on 28th October 2014, during which the Fund will award the most compliant employers in the country, Acting Managing Director Geraldine Ssali Busuulwa has announced.
The Members Meeting, expected to attract over 500 people, including NSSF contributors, employers, workers unions’ representatives, government representatives and members of the public, will take place at Imperial Royale Hotel in Kampala.
“The Members Meeting, now an annual event, is in fulfillment of our commitment to Transparency and Accountability. We will report to our members, who are the owners of the Fund, our performance over the last year, and give them a picture of the strategic direction of the Fund as we aim to continue delivering on our renewed promise and meet their social security needs. We will also hear from members how they expect their Fund to be managed,” Ssali said.
“We will recognise the best employers in terms of compliance, basing on our 360 degrees compliance check. In other words, employers should be remitting contributions for all their employers, these contributions should be remitted on time, and in the right amounts of money as per their legal obligations,” she added.
She added that the Auditor General, John Muwanga, will present the audited financial accounts for the Financial Year 2013/2014. The accounts, of which NSSF obtained an unqualified opinion, will show that the Fund recorded impressive performance; with assets growing by 26% from UGX 3.5 trillion in 2012/2013 to UGX. 4.4 trillion in 2013/14.
The Minister of Finance, Planning and Economic Development, Maria Kiwanuka, under whose oversight the Fund falls, will preside over the Members Meeting.
Ssali urged NSSF members and employers to attend the meeting to have a say in the management of the Fund. “The meeting is for the members to not only demand answers from the Fund’s Board and Management but also share their views with us. In line with our commitment to serving them better, we will listen to their views and execute,” she said.
NSSF recently announced an interest rate of 11.5% for the Financial Year 2013/14, about Shs366 billion in monetary terms. The new rate is an increase from 11.23% (or Ushs 278 billion) the Fund paid last year. It also means that the 1.45 million members of the Fund have earned Ushs 88 billion more this year, in line with the Fund’s commitment to pay a competitive return to its members.
Summary of NSSF Performance for Financial Year 2013/2014
- Assets grew from by 26% from UGX 3.5 trillion in Financial Year 2012/2013 to UGX UGX. 4.4 trillion in Financial Year 2013/14.
- Contributions grew by 14% from UGX 558 billion in Financial Year 2012/2013 to UGX. 638.2 billion in 2013/2014, powered by compliance level of 77%. The average rate of monthly contributions collected is UGX 53 billion, which some months registering as high as UGX 60 Billion collected.
- Amount of interest credited on members’ accounts has increased by 33% from UGX 278 billion in Financial Year 2012/2013 to UGX 366 billion in the Financial Year 2013/2014.
- NSSF 2014 rate of 11.5% is above the 10 year inflation rate of 9.23%.
- Benefits paid to members grew by 18.5% from UGX 140 billion in the Financial Year 2012/2013 to UGX 165.9 Billion Financial Year 2013/14.
- The speed at which the Fund pays a claim to a retiring member or any other claimants under the NSSF Act is now as low as 10 days for Financial Year 2013/14. There is a target to reach 5 days going forward.
- The cost to income ratio is now at 15%, better than 55% of the banking industry average
- Cost of administration is at 1.5% better than 2.2% of most global funds of similar size