NSSF declares 15% interest rate, pays members Shs 1.1 trillion
The National Social Security Fund (NSSF) yesterday announced an interest payout of 15 per cent on members’ savings for the financial year 2017/2018.
The announcement was made by Dr Gabriel Ajedra, the minister of state for Finance (General Duties) at the Fund's sixth annual members' meeting.
The interest rate for the year equates to Shs 1.1 trillion paid out in interest to members of the Fund.
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This is the very first time in the Fund’s history that it has declared 15% interest rate to its members.
The announcement comes on the heels of the fund’s declaration of an impressive performance on key financial indicators for 2017/2018, with total income hitting a record Shs 1.6 trillion before interest to members and taxes.
The fund’s total assets under management (AUM) stand at Shs 9.98 trillion as at June 30, 2018, a 26% increase from Shs 7.92 trillion the previous financial year.
The 15% interest rate is attributed to the fund’s improved performance on all financial and investment indicators, arising out of strategic exploitation of the investment environment within the region, despite modest growth in the economy over the same period.
The Fund’s performance shows total member contributions increased by 14% to Shs 1.05 trillion in 2017/2018 compared to Shs 917 billion in the previous financial year.
“These milestones can be attributed to a steady rise in compliance levels now at 81% as more members continue to trust us with their money. There was also a drive towards innovations that saw us introduce new products like the Voluntary savers scheme which attracted even more members,” said Richard Byarugaba, managing director, NSSF.
Byarugaba added that going by this growth, the fund is on course to hit total assets of Shs 20 trillion by 2025 as per the 2015 – 2025 Strategic Plan outperforming all other funds and investment options.
