• EDITORIAL POLICY
  • ABOUT US
PML Daily
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
No Result
View All Result
PML Daily
No Result
View All Result
Home OpEd

JAMES T. YESIGA: NSSF, You are short changing us!

PML DAILY EDITOR | PML Daily Editorial by PML DAILY EDITOR | PML Daily Editorial
October 16, 2020
in OpEd
0 0
2.6k
VIEWS
FacebookWhatsAppTwitter
James T. Yesiga, The Patriot (PHOTO/File).

KAMPALA – NSSF declared 10.75% as the interest for its members for this period which was a good return on investment under the circumstances. I quickly noticed that the declared interest was based on my statement balance as at the end of June 2019 instead of June 2020. On inquiry as to why this was so, NSSF responded that as per the NSSF Act of 1985, interest is declared on the balance as at June of the previous year. Indeed when I consulted the NSSF Act 1985 I confirmed that NSSF was acting within the law.

To break this down a little bit, NSSF collected money from its members from July 2019 upto June 2020 and this money will not earn any interest for its members until June 2021! A total of 12 months worth of savings by members does not earn them any interest for a whole year! Granted at the time NSSF was set up investment options were few, equity markets were yet to take root in Uganda as an investment option and we can understand why the framers of the Act made such a provision. But looking at the current investment options available to NSSF now, one cannot help but feel that savers are being short changed. I wonder how many savers are even aware that this is what happens with their monthly savings!

Given that it is now possible for anyone and definitely NSSF to fix money at the beginning of the month and earn an interest at the end of that month, why would NSSF keep hard saved money for 12 months before that money can earn interest for its members? Is it true that indeed for 12 months, the money saved is just kept and is not earning interest or profit? If it is earning profit/interest which does not trickle down to the savers where does it go and how is it accounted for?

Speaking numbers, NSSF collects about 100 billion monthly from the savers which amounts to over a trillion shillings in 12 months. What sort of fund manager keeps such an amount idle? If indeed it turns out that this money is just kept for 12 months and not invested at all then i think NSSF members should sue the fund for incompetence in the first degree! Could this explain why previous managers were caught with their hands in the till? Such an idle sum must have been too tempting for them!

Savers expect that their savings should work hard for them just like they work hard to make that monthly saving. For one to learn that over the years, the savings they have been making every month do not earn for them any profit/interest until after 12 months is at best demotivating.

As the NSSF amendment Act gets debated, this is among some of the most vital amendments that one would expect to see. For the management of NSSF it is not enough to say that you are acting within the law. If the fund is to remain relevant and competitive in the retirement benefits sector, we expect that such progressive ideas/amendments to the NSSF Act should come from within the Fund. That is when we shall believe that indeed you have the best interest of your savers at heart and perhaps grow the fund further. But as it stands, one cannot help but feel short changed!

James T. Yesiga, The Patriot

Comments

Tags: James T. YesigaNSSFThe Patriottop

Related Posts

NEWS

Vote counting in Uganda’s general elections starts

January 15, 2021
95
President Yoweri Museveni casts his ballot at Karo secondary school polling station in Rushere District
NEWS

Ugandans go to polls amid raging COVID-19 pandemic

January 15, 2021
65
The East African Community Election Observer Mission (EAC-EOM) delegation are in a meeting at Imperial Royal hotel in Kampala, Uganda, Jan. 12, 2021. The East African Community Election Observer Mission (EAC-EOM) delegation on Tuesday called for free and fair general elections in Uganda slated for Thursday as the EAC-EOM dispatched a team of 74 observers to different parts of the country. (Photo by Hajarah Nalwadda/Xinhua)
NEWS

Regional observers call for free and fair general elections in Uganda

January 15, 2021
46
The Ethiopian National Defence Force on Wednesday afternoon announced the death of former Ethiopian foreign minister, Seyoum Mesfin during a battle in the country’s northern Tigray regional state.
NEWS

Ethiopia’s former foreign minister killed in battle

January 15, 2021
149
In this photo illustration, the logos of the messaging applications, WhatsApp, Instagram, Messenger and Facebook are displayed on the screen. (PHOTO/File)
NEWS

Uganda blocks social media ahead of presidential, parliamentary elections

January 13, 2021
81
President Museveni has said local coronavirus vaccine trials to begin on December 15 (PHOTO/Courtesy).
Politics

Museveni promises free, fair elections

January 13, 2021
123






 

 

About

The PML Daily, published via www.pmldaily.com is a publication of Post Media Ltd, a professional Digital/New Media company in Uganda.

Follow us

KIU

  • EDITORIAL POLICY
  • ABOUT US

© 2020 PMLDAILY.COM

No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines

© 2020 PMLDAILY.COM

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In