NSSF declares 10% interest to savers

The National Social Security Fund (NSSF) has declared a 10% interest rate to its members for the financial year 2022/2023.

This new rate which equals UGX 1.591 trillion shillings in total was declared by Matia Kasaija, Minister of Finance, Planning and Economic Development.

“In accordance with section 35(2) of the NSSF Act, as amended, I hereby declare an interest rate of 10%. As provided for in the NSSF Act, as amended, this new rate will be calculated and credited to the balance outstanding on the members’ accounts as of 1st July 2022,” he said.

Kasaija congratulated the NSSF Board and Management for posting a remarkable performance on almost all the Key Performance Indicators (KPIs).

“Last Financial Year, the 10-year average rate of inflation was 4.2%. The rate I have just declared is 5.8% above the 10-year average, which means that the Fund has once again delivered on its promise and surpassed it by almost 3.8%. I am especially glad that the Fund’s assets registered growth again from UGX 17.26 trillion in Financial Year 2021/22 to UGX 18.56 trillion in Financial Year 2022/23,” he noted.

According to Kasaija, many naysayers did not imagine the possibility of growing the Fund to UGX 20 trillion.

“The second KPI I am interested in is the money you generated during the year because that shows the productivity of the investments that I approved during the year. I am therefore glad that the total realised income earned increased by 15% from Ugx 1.9 trillion in the Financial Year 2022/22 to Ugx 2.2 trillion in the Financial Year 2022/23,” he explained.

He added that, “This is very commendable given the turmoil in Europe due to the Russia-Ukraine war, investor flight from most of the developing markets back to the US, reduction in value across all East African stock markets and the increased scrutiny that the Fund underwent in the 3rd quarter of the just concluded financial year.”

Peter Kimbowa, NSSF Chairman Board of Directors revealed that member contributions increased by 15.4% from UGX1.49 trillion in Financial Year 2021/22 to UGX1.72 trillion in Financial Year 2022/23.

Total Realised Income earned increased by 15% from Ugx 1.9 trillion in the Financial Year 2022/22 to UGX2.2 trillion in the Financial Year 2022/23.

Benefits paid to qualifying members increased by 1% from UGX1.189 trillion in the Financial Year 2021/22 to UGX1.199 trillion in the Financial Year 2022/23.

Assets Under Management (AUM) increased by 7.5% from UGX 17.26 trillion in Financial Year 2021/22 to UGX 18.56 trillion in Financial Year 2023/24.

“NSSF is committed to a broad value creation; value beyond numbers. On that note, we are launching our first sustainability report, which is integral to our strategy, which is working with the community,” he said.

Auditor General John Muwanga revealed that In accordance with section 23 of the National Audit Act 2008, he appointed MS PriceWaterhouseCoopers, Certified Public Accountants to audit the Financial Statements of the NSSF on his behalf to enable him to report to parliament in accordance with article 163 of the constitution of the Republic of Uganda 1995 as amended.

“In my opinion, the accompanying financial statements give a true and fair view of the financial position of the National Social Security Fund as of 30 June 2023 and of its financial performance, its cash flows for the year that ended in accordance with international financial reporting standards and the requirements of Uganda retirement benefits regulatory performance for the National Social Security Fund,” he said.