NSSF Interest to Members Rises by 3.7% to Record 15%

NSSF has announced an interest payout of 15% on members’ savings for the financial year 2017/2018, the highest interest rate that the pension Fund has ever declared.

It equates to Shs 1.1 trillion to be paid out in interest to members of the Fund and is a 3.7% increment compared to the previous year.

Over the period of six years since 2012, NSSF’s interest has increased by 5%.

The new payout interest was announced on Tuesday by Dr. Gabriel Ajedra, State Minister of Finance for General Duties during the 6th NSSF Annual Member’s Meeting.

The announcement comes on the heels of the Fund’s declaration of a performance on key financial indicators for period under review.

Total income hitt a record Shs 1.6 trillion before interest to members and taxes while the Fund’s total Assets Under Management (AUM) rose to Shs 9.98 trillion as at June 30, 2018. This represents a 26% increase from Shs 7.92 trillion in the 2016/17 financial year.

The Fund attributes the rise in the interest rate to improved performance on all financial and investment indicators, arising out of strategic exploitation of the investment environment within the region, despite modest growth in the economy over the same period.

NSSF Managing Director, Richard Byarugaba told members that total member contributions increased by 14% to Shs 1.05 trillion from Shs 917 billion. This is the highest contribution ever collected by the Fund in a single year.

The total income increased by 77% to Shs 1.6 trillion in 2018 from Shs 912 billion in 2017.

“These milestones can be attributed to a steady rise in compliance levels now at 81% as more members continue to trust us with their money,” Byarugaba said.

“There was also a drive towards innovations that saw us introduce new products like the Voluntary savers scheme which attracted even more members”.