Minister to announce NSSF interest in August

By David Mugabe

Contributors to the National Social Security Fund (NSSF) should expect an improved interest on their savings to be posted on their accounts by September.

Richard Byarugaba, the NSSF chief, yesterday said legally, the minister of finance should announce the interest rates before October 1, but they expect this announcement to be made by late August or early September.

Byarugaba has promised improved figures compared to the 10% offered to workers last year.
“It will be above 10%,” said Byarugaba, who did not want to mention the actual figure.

He said the fund has not yet posted the interest on the workers’ accounts but the law allows them to deposit a minimum of 2.5% to those withdrawing their savings by this time.

He said they are currently doing an audit.

The fund continues to operate strongly with about sh50b collected monthly, which contribute to the overall sh3trillion tranche in capitalisation.

On the announcement by the minister that all the senior positions at the fund will be advertised, Byarugaba said the board has recommended that external candidates can apply, but those currently holding the jobs can also apply.

The top jobs are the post of managing director and those falling below it.

A whistblower has petitioned the IGG to investigate allegations of financial mismanagement and reports of salary irregularities.

Sources say the whistleblower report is structured in such a way as to push the minister to act and open up the top management jobs to the public.

The pensions sector is undergoing reforms. The Government has cited the need to open up the sector to allow competition that would breed efficiencies in the sector.

The reforms are structured in two parts; establishing a regulator- Uganda Retirements Benefits Regulatory Authority (URBRA) which is already in place and gradually liberalising the sector with a new law. A technical committee is currently inputting into the liberalisation Bill.

Andrew Kasirye, the URBRA chairman, said they are asking that the NSSF Act be repealed to avoid having two parallel pensions legislations.

But trade unionists have called for a go-slow in the liberalisation process, saying it could spell more spillage of workers’ savings.

Finance minister Maria Kiwanuka has defended the reform process, saying workers will choose their providers and negotiate their terms and no one should doubt the commitment of the Government to make the process transparent.