NSSF benefits payments now at Ushs 165 billion
The National Social Security Fund (NSSF) paid Ushs 165 billion in the year 2014 to more than 11,000 beneficiaries, representing an increase of 18% from the previous year, according to information obtained from the Fund.
The information also shows that over the last 10 years, the Fund has paid in excess of Ushs694 billion to over 100,500 beneficiaries.
Barbra Teddy Arimi, the NSSF Head of Marketing and Communications said that the figures are a testimony that the Fund fulfills its mandate to provide social security services to Ugandan workers.
“We have consistently paid all members of the Fund that lodge in their benefits claims when they qualify. The amount of money we pay out has consistently increased by 27% on average per year over the last 10 years,” she said.
She added that the Fund has also consistently improved the time it takes to pay benefits from a high of 120 days five years ago to an average of 10 days this year, with a target to pay within 5 days, and even less for the Age benefit.
The benefits data also shows that 95% of beneficiaries paid are the savers themselves.
“It is a myth that the Fund does not pay, or that savings are only paid to dependents of deceased members.Only less than 5% consists of Survivors Benefit,” Arimi said.
NSSF administers and pays 5 benefits, in accordance with the NSSF Act (cap 222). These include;
- Age Benefit – paid when a member attains retirement age of 55, or 50 years and retired from regular employment
- Withdrawal Benefit – paid when a member attains 50 years and has not been employed for a year; and if a member is in excepted employment
- Invalidity Benefit – paid if a member is unable to work due to incapacitation as a result of illness or disability
- Emigration Grant – paid to members who emigrate from Uganda
- Survivor’s Benefit – paid to dependents of a deceased member
Qualifying members of the Fund can lodge in claims at any of the Fund’s 19 branches across the country, including 6 branches in Kampala.
NSSF has a total membership of about 1.45 million contributors. As at March 31, 2015, the Fund’s total assets stood at Ushs 5.2 trillion, a 28% growth compared same period last year.
Contributions collection also continues to improve and now stands over Ugx 55 billion per month. Collections over the last two months topped Ugx 65 billion.
While addressing the media in February this year, NSSF Managing Director Richard Byarugaba said that over the next 3 years, the Fund will focus on improving compliance, diversification of its investment portfolio and introduction of new products and benefits.