The National Social Security Fund (NSSF) withstood tough economic conditions occasioned by the residual effects of the Covid-19 lockdown, economic contraction in the quarter ended March 2022 and mass withdrawal of savings through the mid-term access.
On Tuesday, Henry Musasizi, the Minister of State for General Duties representing Matia Kasaija, the Finance Minister declared an annual interest of 9.65% for members. However, those accessed the mid-term benefit will only receive the mandatory 2.5% interest at the Serena Hotel, Kampala.
“The law provides that the NSSF interest that has been declared today applies to money in your account provided no balance has been withdrawn in the interim. If you accessed your savings, you will take the 2.5% statutory rate,” Agnes Isharaza, NSSF head of legal affairs said.
The NSSF paid out a total of 443Billion to over 21,700 qualifying members in less than 3 months, following the commencement of payments in March this year.
The payments were in respect to Section 20A (1), of the National Social Security Fund (Amendment Act) 2022, that allows midterm access of accrued contributions to eligible members.
Richard Byarugaba, the NSSF Managing Director said that surpassing the Ugx400 billion mark was a milestone that affirms the Fund’s commitment to pay midterm benefits to qualifying members.
At launch of midterm payments, the Fund announced that 41,174 members were eligible for midterm benefit; these were members above 45 years, and persons with disability that were 40 years of age and above and had made contributions to the fund for at least 10 years who accessed between 20% and 50% of their accrued savings.
The 9.65% declared as interest rate for NSSF savers for FY 2021/22 translates into a total Ugx1.38 trillion that will be credited to members’ accounts.
“If all the NSSF members wanted their money today, the fund is able to pay them by liquidating our assets. So we have enough money,” Richard Byarugaba, the NSSF CEO said on Tuesday.
Peter Kimbowa, the NSSF Board Chairman, said: “We don’t celebrate the legacies of the past. We defend and protect the legacies of the future. We are a futuristic organization,” when reffereing to the Funds direction into wealth management.
