Collections by the National Social Security Fund (NSSF) have almost doubled, hitting a record sh40b a month.

Benefits paid to members during the 2010/11 financial year grew by 25% from shs64b to shs79bn.

 

On average the benefits paid every month to members increased from shs5.3bn to shs6.5b and beneficiaries increased from 10,200 to 11,500. 

 

In a statement issued over the weekend, the Fund’s Managing Director, Richard Byarugaba, said the organization (NSSF) has for the first time in ten years, been offered a clean audit report by the Auditor General which provides for the “Unqualified” opinion for the financial year 2010-2011. NSSF has been receiving a “Qualified” opinion since 2002. 

 

“This is a great achievement and a huge milestone in the turnaround of the Fund,”  said Richard Byarugaba, in a statement released over the weekend by Ms Olive Birungi Lumonya, the Brand Marketing Manager. 

 

He said one of the fund’s major objectives  is to create value for members’ funds. This will be achieved  through investing profitably, and reducing costs, he explained. 

 

“The Fund assets grew by 25% from shs1,704b in the financial year 2009/10 to shs2,129b in financial year 2010/11,” Byarugaba said.

 

The monthly collections have hit shs40billion from shs28b and were continuing to grow. Byarugaba said this growth was due to the relationship management business model that was introduced in the last financial year. 

 

He noted that in July last year, the fund launched the new service channels to enable members access their balances and statements conveniently. These include SMS, Toll-free line and the website.

 

“The fund is committed to continuous improvement in performance and service delivery to the members” he added.

 

During the 2010/11 financial year, the NSSF assets grew by 25% from shs1,704b to shs2,129b. Revenue grew by 8% from shs137b in 2009/10 to shs147bn in 2010/11. The contributions grew by 32% from shs295b in 2009/10 to shs388b in 2010/11. 

 

Benefits paid to members grew by 25% from shs64b in 2009/10 to shs79bn in 2010/11. 

The amount of interest credited on members accounts grew by 6% from shs89b in 2009/10 to shs95b in 2010/11

 

In a related development, the Fund is seeking to recover sh926 million from 372 organisations who have failed to remit workers’ savings. The firms have been given 30 days to pay up their NSSF remittances or face legal action following the issuance of bounced cheques.

NSSF’s acting head of communications and marketing Olive Lumonya said last week that the dishonoured  cheques are unrealized social security contributions which the Fund is mandated to recover .