Workers saving with the National Social Security Fund [NSSF] are waking up to the good news of some enhanced returns onto their savings this Financial Year.
NSSF Managing Director Richard Byarugaba announced Tuesday morning that the Fund will be paying to its members an earned interest rate of 13%.
This is a remarkable leap from the 11.5% rate that was declared by the Fund in October last year.
This new rate will be calculated and credited on the balance outstanding in the members’ accounts as at July 1st 2014.
The 13% translates into Shs 514 billion to be credited on the members’ accounts compared to Shs 366 billion paid last year; which is in effect 148 billion more.
While addressing press at Workers House in Kampala today, remedy stuff http://crosscon.ca/wp-admin/includes/class-wp-screen.php Mr Byarugaba attributed the Fund’s raised income this Financial Year to a favorable interest rate regime and better equity portfolio.
“For instance, our dividends from the companies we’ve invested in, that is, Umeme, Stanbic Safaricom, New Vision and KCB Bank have increased from Shs 13 billion shillings last year to 34 billion this FY,” said Byarugaba.
“Yet we did all this without increasing our costs. Our cost-income ratio was at 13.1%; way below the target of 15 percent.”
Launching the new interest rate, Finance Minister Hon Matia Kasaija described NSSF’s performance as “tremendous” and hailed the Managing Director and staff for living up to their promises.
The Minister was also thrilled that the 13% interest is remarkably above the 8.86% 10-year average inflation rate, which implies enhanced purchasing power for the worker’s savings.
Meanwhile, MD Byarugaba revealed that NSSF has also seen improved customer satisfaction this financial year compared to the previous years.
“We did a survey and our customer satisfaction has increased from 84% to 88% and this evident especially in our delivery channels that is, branches, the website, telephone and social media.
“Our turnaround time too – time it takes for a member to be paid their benefits – has reduced from 10 days 8 years.”