NEWS – NSSF IN RECORD 2017/18 INCOME, MEMBERS LOOK FORWAD TO GOOD INTEREST PAY OUT

KAMPALA – National Social Security Fund (NSSF) earned a record sh1.6trillion before members’ interest and taxes in 2017/18 a 77 percent jump from last year’s sh912b due to an increase in investment income and higher member contributions, the financial institution has said.

The Fund’s assets under management rose to sh9.98trillion up 26 percent from the same time last year when Sh7.92trillion was reported.

“Uganda experienced improved economic growth of 5.8 percent compared to 3.9 percent the previous financial year, which meant that generally, the investment environment saw significant improvements at macro level, “ NSSF boss Richard Byarugaba said in a recent news conference.

“We were also aggressive in the market, seizing opportunities present by growth in regional markets especially in Uganda and Kenya.”

Growth in income was buoyed by higher interest income and strong recovery in regional equity markets. The shilling’s depreciation during the period also boosted investments in the region.

“For the first time in in the Fund's history, we recorded over a trillion shillings in collections from our members. This is a result of steady rise in compliance levels, now at 81 percent over a three months’ period, and contributions from the Fund’s voluntary members,” Byarugaba reported.

The Fund, the largest in the region by value, saw contributions grown 14 percent to Sh1.05trillion from sh917b the previous year.

Costs continue to be kept under control with the cost to income ratio declining by a percentage point to 12.6 percent from the previous 13.4 percent. Costs of administration remained unchanged at 1.3 percent of total assets.

Benefits pay out rose to sh360b from Sh278b in 2016/17.

Members eagerly await the announcement of the interest on their savings which will be unveiled at the 6th Annual Members meeting set for Tuesday 28^th August in Kampala. The Fund has committed to paying at least two percentage points above the 10 year inflation rate moving average.

Last year the Fund paid its members 11.23 percent.

ENDS.