PIC: NSSF's Chief Investments Officer, Gerald Paul Kasaato, speaks during a panel discussion in Kampala, as managing director Richard Byarugaba and others look on on Tuesday. (Credit: Eddie Ssejjoba)
KAMPALA - Members of the mandatory National Social Security Fund (NSSF) pensions and retirement will receive a record 15% interest on the value of their savings at the end of June.
This is the highest interest since the financial year 2007/2008, when the interest was 14%.
The record interest comes after NSSF’s assets hit a record sh9.98 trillion for the financial year 2017/18.
During the fund’s annual general meeting at the Pearl of Africa Hotel in Kampala, Richard Byarugaba, the NSSF managing director, noted that liberalisation of the pensions sector should be tiered.
He explained that the NSSF should be maintained as the mandatory scheme in the first tier while private players should then compete in a second tier.
Byarugaba said the tier system would enable members to save between up to 30% of their gross monthly pay up from 15% currently.
“If you put your savings in a pension fund backed by your government, there are some safeguards to ensure that it is backed up. You can liberalise [the pensions sector], but not on the first tier.
"The voluntary tier can be liberalised."
State minister for general duties, Ajedra Gabriel Aridru, who represented finance minister Matia Kasaija, revealed that the NSSF Act is being amended to create a tribunal for aggrieved parties in the bidding process for fund projects.
Hitherto, aggrieved parties had stalled NSSF projects through the courts.