Whereas there have been mixed reactions over the NSSF (Amendments) Bill, 2019, Mr Richard Byarugaba, says they cannot wait for the law to be signed since it gives the Fund a lot of legroom to introduce new products and venture into new areas.
National Social Security Fund (NSSF) has said there is so much it can do with the proposed NSSF (Amendments) Bill, 2019 to expand the Fund in terms of member contributions and income.
After delivering a 12.15 per cent interest on members’ savings, which was a growth from 10.75 for the period ended June 2020, the Fund yesterday said the proposed amendments will, beyond allowing midterm access, empower NSSF to introduce new benefits and flexibilities to tap into the large informal market.
“We are now waiting for Parliament to effect the changes proposed by the President. There is so much we can do just beyond providing midterm access,” Mr Richard Byarugaba, the NSSF managing director, said yesterday during the ninth annual members meeting in which Finance Minister Matia Kasaija declared a 12.15 per cent interest on members’ savings.
During the meeting, Mr Kasaija said he will ensure that the amendments are expedited to allow NSSF widen social security coverage by providing new products beyond retirement benefits, which is currently the core product.
Some of the projected products, Mr Byrarugaba said, will include benefits that cover life cycle risks, promote passive saving and venture into informal sector, including introducing a retirement pot for farmers.
“The future is about making your savings count for a better life in investments, insurance, affordable homes, great benefits, while still securing a better life,” he said, giving an indication of where the Fund will be paying attention once the amendments are passed and assented to.
During the period ended Junes 30, NSSF experienced a reduction in member contributions, declining from 17 per cent in the same period in the last financial year to 8 per cent.
However, Mr Byarugaba noted that the Fund had remained resilient, supported by growth in income from its investment portfolio.
“Between the 2016/17 and 2020/21 financial year, we see a 9 per cent reduction in the growth rate of member’s contributions,” he said, stressing that unlike before the Fund’s growth was now driven by investments rather than members contributions.
During the period ended June 2021, total asset under NSSF’s management grew to Shs15.6 trillion from Shs13.3 trillion for […]