The investment income of the National Social Security Fund (NSSF) increased by about Shs400b over the last one year despite the impact of the Covid-19 pandemic, latest figures show.
According to the management, NSSF’s investment income between June 2020 and June 2021 was Shs1.84 trillion compared to Shs1.47 trillion for June 2019/2020.
Mr Richard Byarugaba, the NSSF managing director, attributes the rise to growth in interest income, largely attributed to the increase in return on treasury bonds, dividend income and real estate income.
He explained that in the period under review, interest income grew from Shs1.4 trillion to Shs1.6 trillion while dividend income grew from shs62.2b to 7.49b. Real estate income grew to Shs53.5b up from Shs11.1b.
While presenting NSSF financial results on Thursday, Byarugaba also said the Fund had benefited from a consolidated pay-out in dividends that had been held back by a number of companies at the height of Covid-19 disruptions.
He also said NSSF member contributions grew from Shs1.27 trillion to Shs1.37 trillion, representing an increase of 8 per cent.
However, he said, the Fund had also registered substantial growth in benefits pay out which during the period increased by 29 per cent, growing to Shs642.3b compared to Shs496.4b for the period ended June 2020.
Mr Byarugaba also noted that the Fund had paid out at least Shs2b to members battling Covid-19 through the invalidity benefit window.
However, he said, the overriding growth in benefits pay out compared to collections was a demonstration that the Fund had now matured with its growth generated from investment income rather than member contributions. During the period, the Fund defied Covid-19 related disruptions to grow in its assets portfolio from Shs13.3 trillion for the period ended June 30, 2020 to Shs15 trillion, representing 17 per cent growth.
Mr Byarugaba also noted that whereas there had been a lot of disruptions across the globe and Uganda in particular, the Fund had remained resilient with focus now shifted on giving members more value on their contributions as well as achieving commitments under the 2015-25 strategic plan.
Under the 2015-25 strategic plan, the Fund is expected to have grown its assets portfolio to Shs20 trillion by 2025.
Other key expectations, Mr Byarugaba said, include putting in place measures to reduce age benefits processing to a single day, delivering 95 per cent customer and workers’ satisfaction.
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