The National Social Security Fund (NSSF) assets under management have increased from shs13.3trillion last year to shs15.5 trillion in June 2021 representing a 17% growth.
Presenting the financial results on Thursday to journalists at their headquarters in Kampala, NSSF Managing Director, Richard Byarugaba said the funds comprehensive income increased by 25% from shs1.5 trillion to 1.8 trillion .
Byarugaba attributed the growth in interest income to the increased return on treasury bonds in the fixed income portfolio, dividend income and property sales.
“The socio-economic effects of the pandemic are still wrecking havoc on economies across the globe and most businesses may take several years to shake off the effects of Covid. Nonetheless, our performance shows that the fund is not only resilient but can absorb such shocks and continue its growth trajectory,”Byarugaba said.
According to the results released on Thursday, member contributions increased by 8% from shs1.27 trillion to shs1.37 trillion better than the 5% growth recorded in the previous year of 2019.
The NSSF Managing Director attributed the increase on the recovery of some employers that have benefitted from the fund’s amnesty offered to businesses affected by the Covid pandemic in the previous year.
According to NSSF officials, a total of 1730 employers including schools and entertainment centres greatly affected by the pandemic and its effects like the lockdown requested for amnesty and was granted.
Officials however noted that a number of employers have since recovered and are resuming to contribute to the fund.
Following the return to parliament for a fresh debate of the NSSF Bill 2020, Byarugaba noted that the fund is ready for midterm access by savers , but noted they are reconfiguration their system to ensure this is achieved by November.
“We have been preparing over the last one year when it became clearer that the bill would be passed. We have solutions for the changes on the horizon. For example, midterm benefits including benefits, expansion of coverage to include the informal sector and the voluntary space. We have built a very dynamic institution that can adapt, embrace these changes and thrive,”Byarugaba assured members.
Asked whether the midterm access will not affect their shs20 trillion asset target by 2025, the NSSF Managing Director downplayed the effect of midterm access on the fund.
He insisted that with shs4.5trillion left to reach the shs20 trillion target, they will definitely achieve it by the year 2025 as planned.
Byarugaba said the Finance Minister, Matia Kasaija will next week declare the interest the NSSF will pay to its members for the last financial year.
“Our performance demonstrates that we are creating value for our members even in a very difficult economic environment and this value will be reflected in the return the Minister of Finance will announce next week,” he said.