Minister’s nod is a legal requirement in NSSF Act
Jun 23, 2008
EDITOR—The National Social Security Fund (NSSF) wishes to respond to Mr. Johnny Rukundo’s letter published in The New Vision of June 2.
EDITOR—The National Social Security Fund (NSSF) wishes to respond to Mr. Johnny Rukundo’s letter published in The New Vision of June 2.
Rukundo says in it is “bizarre†that the NSSF “would seek the Minister of Finance’s approval prior to increasing the interest payable to members from the current 7% to a possible 9% per annumâ€.
We would like to inform the public as follows:
-The proposal for an increment in interest is made by NSSF management through the Board of Directors as per the current NSSF Act.
-NSSF distributes all its income to members after all necessary costs.
-The issue in the past has been not having post-cost incomes and that is the reason why the returns to members have not been to the desired level.
-The minister’s no objection is a requirement as per Section 34 (1) & (2) of the NSSF Act, and not a determinant when increasing the interest rate.
-Because of our financial performance this year which is expected to be very strong, members will see a significant positive change in the level of interest paid. NSSF would like to assure our members and the general public of our continued improvement in service delivery
Victor Karamagi
Public Relations Officer
NSSF
Rukundo says in it is “bizarre†that the NSSF “would seek the Minister of Finance’s approval prior to increasing the interest payable to members from the current 7% to a possible 9% per annumâ€.
We would like to inform the public as follows:
-The proposal for an increment in interest is made by NSSF management through the Board of Directors as per the current NSSF Act.
-NSSF distributes all its income to members after all necessary costs.
-The issue in the past has been not having post-cost incomes and that is the reason why the returns to members have not been to the desired level.
-The minister’s no objection is a requirement as per Section 34 (1) & (2) of the NSSF Act, and not a determinant when increasing the interest rate.
-Because of our financial performance this year which is expected to be very strong, members will see a significant positive change in the level of interest paid. NSSF would like to assure our members and the general public of our continued improvement in service delivery
Victor Karamagi
Public Relations Officer
NSSF