7 December 2012

Uganda: NSSF Unveils New Logo, Posts Growth in Assets

National Social Security Fund's (NSSF) assets have grown to sh3 trillion, the managing director, Richard Byarugaba, has said. This represents 76% growth, up from sh2.1 trillion recorded in 2010/2011.

Addressing journalists at Serena Hotel in Kampala, Byarugaba attributed the growth to key reforms that have improved relationships among staff in addition to improved compliance.

Byarugaba also unveiled the NSSF's new logo, which has the blue and green colours with a tag-line "A Better Future". He said the new logo symbolises NSSF's renewed commitment towards offering quality products, customer service and competitive returns to the members in a transparent and efficient environment.

He said monthly contributions had risen by 71% from sh24.5b to sh42.b over the last two years due to the reforms instituted. Meanwhile, members' balances have grown by 70% from sh1.7b to sh2.9b.

Byarugaba also revealed that the organisation was posting a monthly growth of sh50b, while compliance among members has risen to 75% over the last two years.

At least 81% of the fund's assets (sh2.7 trillion) are invested in fixed income, 13 % (sh391b) in equities and 6% (sh175b) in real estate.

The period for processing and paying benefits to members has also improved by 60%, from 50 to 20 days, while the fund's income has grown by 86% from sh58b to sh294b over the last 24 months.

The average monthly interest income has also grown by 112% from sh11.1b to sh23.6b, while rental and dividend income has risen by 36%. Its overall costs have been reduced by 11% and as a result, cost-income ratio has improved from 37% to 18%.

Benefits paid to members have grown by 60% from sh64b to sh102b, while interest paid to members went up by 126% from sh89b to sh202b. Byarugaba attributed this to a 10% interest that was paid at end of 2011/2012 financial year.

He said with the liberalisation of the pension sector, they would target people in informal employment to increase their base from the current membership of about 500,000.

He added that they would also increase their presence on social media platforms.

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