National Social Security Fund is yet to announce the new interest rate
EDITOR: On July 19, New Vision published a letter entitled: “NSSF boss, act and save retirees savingsâ€.
EDITOR: On July 19, New Vision published a letter entitled: “NSSF boss, act and save retirees savingsâ€.
It is true at the end of every financial year, the Fund is expected to announce and credit members’ accounts with a new interest earned on their savings.
This is after the finance minister, on the advice of the NSSF Board, declares a new interest rate by issuing a Statutory Instrument not later than October 1 as provided for by the NSSF Act.
The law also provides that during the period between the end of the financial year and the date of the declaration of the new interest, a rate of 2.5% shall be credited to members’ accounts. Therefore, for any benefit claims lodged between July 1 and October 1, NSSF pays a rate of 2.5%.
A new interest rate is then paid for all subsequent claims. We advise that in such a situation, members can choose either to stay their claims to benefit from a new interest rate after it has been declared, or claim their benefits at 2.5% as stipulated in the law.
The Board is reviewing the Fund’s financial performance for the financial year just ended and will soon advise the minister on the new interest rate because the rate depends on the Fund’s externally audited financial accounts.
Victor Karamagi
Public Relations Manager
National Social Security Fund
It is true at the end of every financial year, the Fund is expected to announce and credit members’ accounts with a new interest earned on their savings.
This is after the finance minister, on the advice of the NSSF Board, declares a new interest rate by issuing a Statutory Instrument not later than October 1 as provided for by the NSSF Act.
The law also provides that during the period between the end of the financial year and the date of the declaration of the new interest, a rate of 2.5% shall be credited to members’ accounts. Therefore, for any benefit claims lodged between July 1 and October 1, NSSF pays a rate of 2.5%.
A new interest rate is then paid for all subsequent claims. We advise that in such a situation, members can choose either to stay their claims to benefit from a new interest rate after it has been declared, or claim their benefits at 2.5% as stipulated in the law.
The Board is reviewing the Fund’s financial performance for the financial year just ended and will soon advise the minister on the new interest rate because the rate depends on the Fund’s externally audited financial accounts.
Victor Karamagi
Public Relations Manager
National Social Security Fund