NSSF income increases by 25 per cent despite Covid pandemic

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NSSF income increases by 25 per cent despite Covid pandemic
NSSF income increases by 25 per cent despite Covid pandemic

Africa-PressUganda. At a time when the economy is struggling to cope with the impact of the Covid pandemic and its resultant containment measures, the National Social Security Fund (NSSF) still managed to grow its assets base from 13.3 trillion to 15.5trillion.

Results released by the Fund on Thursday indicate that NSSF now manages assets worth 15.5 trillion as of June 30, 2021, despite COVID-19 induced shocks and its resultant negative effects continuing to take a toll on the economy and jobs.

The solid performance registered by the Fund was mainly driven by increased contributions and interest income despite an increase in the benefits paid out.

According to the NSSF senior management, an increase in return on Treasury bonds in the fixed income portfolio as well as an increase in dividend income, not to mention real estate income, explains the impressive performance registered in tough economic situations.

But even then, the NSSF Managing Director, Mr Richard Byarugaba said while releasing the Fund’s financial Performance report that interest on savers’ contributions will always be reasonable, keeping with his promise to pay a competitive rate, higher than the 10-year average rate of inflation plus two percentage points.

He further noted that the Fund has demonstrated resilience and this is why it withstood the economic shocks resulting from the COVD-19 pandemic that affected businesses not only in the East African region where the Fund operates, but also globally.

Furthermore, it also became obvious that the NSSF income for the 2020/21 Financial Year increased by 25 per cent from Shs1.4 trillion to Shs1.8 trillion, despite the effects of the COVID-19 pandemic.

Speaking to journalists at the release of the Fund’s financial performance, Mr Byarugaba attributed the increase to growth in interest income, “to the increased return on Treasury Bonds in the Fixed Income portfolio, dividend income, and property sales.”

Utility

The National Social Security Fund Uganda is a multi-Trillion Fund mandated by the government through the NSSF Act, Cap 222 (Laws of Uganda) to provide social security services to employees in the private sector.

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