The National Social Security Fund (NSSF) has increased its total assets as at March 31, 2022 by 15.3 per cent to about Shs 16.86 trillion from 14.62 trillion in 2021.
NSSF Managing Director Richard Byarugaba who published a transparency statement that covers events from March 31, 2021, the 15.3 per cent growth says that the increase was due to the continued growth in investment assets and contribution collection.
For instance, NSSF as of March 31, 2022 had given out loans worth about Shs 11.13 billion, lower from about Shs 14.49 billion loaned out as of March 31, 2021.
Byarugaba in his statement says members’ contributions grew by 6 per cent in the period under review to about Shs 1.0219 trillion from about Shs 965 billion in March 2021.
“Despite this being below budget by 9 per cent, the improvement was driven by the re-opening of the economy, especially the education sector,” he says.
Benefits that the Fund paid to qualifying members grew by 40 percent to about Shs 773bn mainly driven by mid-term benefits pay outs, as the Fund commenced paying in March 2020, and had paid Shs 161 bn as at March 31, 2022.
“98 per cent of the beneficiaries are living members and 2 per cent survivor benefit,” he says.
The Fund’s interest income, which makes up 95 percent of the Fund income, grew by 13 per cent to about Shs 1.3 trn from about Shs1.2 trn.
“Dividend income grew by 146 percent to about Shs 67.8 bn in 2022 from about Shs 27.5 bn in 2021, driven by a general increase in dividends earned from entities in the banking and telecom sectors.”
“Costs of administration, which is one of the major issues of concern, did better as they improved to 0.9 per cent from 1.02 per cent in the previous year on account of the growing balance sheet size coupled with cost savings realised from process improvements and better cost management,” Byarugaba reports.
Meanwhile, construction works are in progress at various real estate projects such as; Citadel Mbuya, Pension Tower, Lubowa, Temangalo Housing project, NSSF Mbale City House and Kyanja.
