The National Social Security Fund has declared 15 per cent as bonus to each of the active 900,000 savers for 2017/18 financial year.
Announcing the interest rates, State Minister for Finance in charge of General Duties, Gabriel Ajedra said he was pleased by the fund’s obligation to its policy of transparency and accountability.
“The fund will pay an annual interest rate of 15 per cent which will be Shs1.1 trillion in total.
I am impressed by the fund’s commitment to transparency which is something some of us, as government need to replicate across. I want to underscore the good performance of the board and management. Within, the last three years, the fund has registered about 500,000 savers”. Eng. Ajedra said.
He added “
Last year, the fund declared 11.23 per cent and the 15 per cent, the height interest rate so far to be paid by the fund with highest ever interest declared to members was in 2007/2008 when then Managing Director, David Chandi Jamwa declared a 14 per cent rate. This was the first time NSSF declared an interest rate to members that was above the inflation rate.
NSSF Managing Director, Richard Byarugaba attributed the good performance on teamwork and the willingness from the board to support investment initiatives.
Byarugaba also revealed that construction of the pension towers will start in three months. “Three years down the road, the NSSF Pension towers will be the tallest and biggest building in town; it will cost us 110m dollars of our money”
NSSF board chairman, Patrick Byabakama Kaberenge said the fund will remain focused developing the real estate sector to supplement on government efforts of solving the problem of shortage of houses.
We will focus on unlocking the value in the major real estate projects including Pension towers, Lubowa, Temangalo. The Fund also remains one of the top tax payers in Uganda. The Fund has paid UGX 102 billion, 136 billion and 145 billion in taxes in 2015, 2016 and 2017 respectively.
Kaberenge revealed that the fund the 56 Mbuya apartments are almost complete and by the time, they are ready, they would have spent $1 million.
Other ongoing projects include
$ 400 million in Lubowa project
Mbarara office block while similar office blocks are about to start in Gulu and Mbale.
How members profit
NSSF has various levels of how members can claim their money. The first is the age benefit, which allows people to claim money once they turn 55 years of age. If the members can prove that they are out of employment by the age 50, then they can claim for their savings.
The ultimate goal is to have some level of social protection for members. Survivors can also claim money belonging to a member. The amount including interest earned is paid to the immediate surviving family of the deceased member.
Exempted employment benefit is paid to members who join excepted employment categories that have their own social protection schemes such as public service, Army, and Police.
Emigration grant is paid to foreigners or Ugandan members who are leaving the country permanently. Invalidity benefit is paid to members who can no longer be gainfully employed because of physical or mental incapacitation.