NSSF value hits record sh2 trillion
May 08, 2011
THE value of the National Social Security Fund (NSSF) has risen to a record sh2 trillion as at the end of April, Richard Byarugaba, the managing director, has said.
By Vision reporter
THE value of the National Social Security Fund (NSSF) has risen to a record sh2 trillion as at the end of April, Richard Byarugaba, the managing director, has said.
“We increased collections, earned more from our investments, while our costs remained under and within target,†said Byarugaba, who took over the helm of Uganda’s largest financial institution earlier this year.
The Fund’s book value, the difference between its assets and liabilities, has almost tripled to its current value (sh2 trillion), from sh668b five years ago, and is expected to rise further before the end of the fiscal year in June.
It also broke new ground, collecting sh37b in April against a target of sh33b. Before, the monthly average was sh28b.
“The interest income from our investments has progressively increased and exceeded sh12.2b in April, thereby realising the highest monthly total income,†Byarugaba said.
He said the Fund was ready to operate in a liberalised environment, adding that they would exploit their already strong position in the market to compete.
Parliament last month passed the Retirement Benefits Regulatory Authority Bill of 2010 and begun the debate on the Retirement Benefits Sector Liberalisation Bill of 2011. The two laws propose a removal of the mandatory employee contributions to NSSF, the lowering of age to 45 from the current 55 years, when members can access their savings and introduction of contributory pension scheme for civil servants.
NSSF’s most pressing challenge, Byarugaba said, was to find enough investments to deploy its funds locally. He, however, said he was looking to invest in real estate projects and infrastructure developments.
“I am excited we are now heading in the right direction as we aspire to be the social security provider of choice.â€
NSSF recently announced plans to widen the scope of its products from the current gratuity payouts to mortgages, unemployment, maternity and medical and school fees benefits.
Byarugaba is the latest in a line of leaders at the financial behemoth, which has been wracked with scandals in recent years.
THE value of the National Social Security Fund (NSSF) has risen to a record sh2 trillion as at the end of April, Richard Byarugaba, the managing director, has said.
“We increased collections, earned more from our investments, while our costs remained under and within target,†said Byarugaba, who took over the helm of Uganda’s largest financial institution earlier this year.
The Fund’s book value, the difference between its assets and liabilities, has almost tripled to its current value (sh2 trillion), from sh668b five years ago, and is expected to rise further before the end of the fiscal year in June.
It also broke new ground, collecting sh37b in April against a target of sh33b. Before, the monthly average was sh28b.
“The interest income from our investments has progressively increased and exceeded sh12.2b in April, thereby realising the highest monthly total income,†Byarugaba said.
He said the Fund was ready to operate in a liberalised environment, adding that they would exploit their already strong position in the market to compete.
Parliament last month passed the Retirement Benefits Regulatory Authority Bill of 2010 and begun the debate on the Retirement Benefits Sector Liberalisation Bill of 2011. The two laws propose a removal of the mandatory employee contributions to NSSF, the lowering of age to 45 from the current 55 years, when members can access their savings and introduction of contributory pension scheme for civil servants.
NSSF’s most pressing challenge, Byarugaba said, was to find enough investments to deploy its funds locally. He, however, said he was looking to invest in real estate projects and infrastructure developments.
“I am excited we are now heading in the right direction as we aspire to be the social security provider of choice.â€
NSSF recently announced plans to widen the scope of its products from the current gratuity payouts to mortgages, unemployment, maternity and medical and school fees benefits.
Byarugaba is the latest in a line of leaders at the financial behemoth, which has been wracked with scandals in recent years.