KAMPALA – The Finance Minister Matia Kasaija has on Friday 27 declared an interest rate of 11% to members of National Social Security Fund for the financial year 2018/19.
The new rate will be calculated and credited on the balance outstanding on the members’ accounts as at 1st July 2018, in accordance with provisions of the NSSF Act.
The Minister made the remarks while presiding over the National Social Security Fund (NSSF) 7th Annual Members’ Meeting at Kampala Serena Conference centre.
According to Mr Kasaija, Uganda’s economy has recovered from the shocks of 2016/17, growing at over 6% last financial year.
“The Ugandan economy, like I have said many times this year, has recovered from the shocks of 2016/2017, and has picked momentum, growing at over 6% last Financial Year. This year, we even project a better economic growth,” he said.
Adding; “This rate I have declared today is higher than 6.7% – the 10 – year average rate of inflation. It is also higher than the annual inflation of 3.4% recorded last Financial Year.”
He said he was glad that the fund size grew by over 13% and contributions from workers increased by 17% from UGX 1.049 trillion to UGX 1.208 trillion.
The amount of money paid in benefits to qualifying members increased by 25% from UGX 360 billion in 2017/2018 to UGX 450 billion in 2018/2019.
“We shall do everything we need to do to help the fund grow,” said Kasaija.
The NSSF Managing Director, Mr Richard Byarugaba said that despite the difficult investment environment, the Fund performed over and above most performance targets.
“Overall, we created value for our members. In fiscal year 2012/2013, we committed to pay members a real return – at least 2 percent above the 10 year inflation. We have consistently delivered on this promise and have done so again this year,” he said.
The NSSF Board Chairman, Patrick Byabakama reassured members that the Fund was on a growth trajectory, having grown its assets under management by 13.6 per cent from UGX9.9Trillion in the previous financial year to Shs11.3 trillion in 2018/2019.
Mr Byabakama explained that the Fund’s focus going forward will be to conclude the Real Estate projects as well as innovations to be responsive to needs of the members that will be occasioned by the proposed NSSF Amendment Bill.