National Social Security Fund (Uganda)

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National Social Security Fund
Quasi-government
Industry Social Security
Founded 1985
Headquarters 14th Floor Workers House
1 Pilkington Road
Kampala, Uganda
Key people
Patrick Byabakama Kaberenge
chairman
Richard Byarugaba
managing director
Geraldine Ssali Busuulwa
deputy managing director
Products Investments
Revenue Increase Pretax: UGX:202 billion (H2:2014)[1]
Total assets UGX:4.9 trillion (December 2014)[1]
Website Homepage

The National Social Security Fund (NSSF) is a quasi-government agency responsible for the collection, safekeeping, responsible investment, and distribution of retirement funds from employees of the private sector in Uganda who are not covered by the Government Retirement Scheme. Participation for both employers and employees is compulsory.

History[edit]

In February 2009, the President of Uganda fired the minister of finance, whose ministry supervises the activities of NSSF. Also terminated were the managing director of the NSSF and his deputy.[2] A new board of directors and a new management team were appointed in 2009.

In late 2010, NSSF underwent a restructuring process aimed at making it more efficient, competitive, and responsive to the needs of the members. It is now poised to provide a wide range of social security products and be the lead institution for domestic capital formation and deepening the financial sector.[3]

Analysts in the country said in 2013 that the NSSF had become a leading player in the country's economy.[4]

Investment portfolio[edit]

According to its financial statements for the year ending 30 June 2014, NSSF had UGX:2.65 trillion in government treasury bonds (with yields ranging from 10.25 to 14.35 percent), UGX:682.1 billion on deposit with commercial banks, UGX:251.3 billion in equity investments at fair value through profit or loss (EPL), UGX:250.2 billion in capital work-in-progress, UGX:193.7 billion in investment properties, UGX:143.2 billion in corporate bonds (with yields ranging from 11.03 to 17.00 percent), UGX:73.3 billion in equity securities held-for-trading by fund managers (HFT), and UGX:14.6 billion in cash and bank balances.[5]:15 Based on market value as of 30 June 2014, NSSF's largest investments in equity securities were as follows:[5]:41–42, 44

Operations and economic performance[edit]

The NSSF is a defined contribution scheme and is financed largely by contributions from employers and employees. The total contribution is equal to 15 percent of an employee's gross salary, with the employer contributing 10 percent and the employee 5 percent.[5]:18 The NSSF pays five types of benefits:[5]:18

  • Age benefit - paid to a member who has reached the retirement age of 55
  • Withdrawal benefit - paid to a member who has reached the age of 50 and is out of regular employment for one year
  • Invalidity benefit - paid to a member who has become incapable of gainful employment
  • Survivor's benefit - paid to the dependent survivor of a member
  • Emigration grant - paid to a member who is leaving Uganda permanently

The NSSF's total assets increased to UGX:4.9 trillion as of 31 December 2014,[1] compared to UGX:4.4 trillion as of 30 June 2014.[5]:15 At the end of 2014, over 81 percent of the NSSF's total investments were in fixed income, with the remaining 19 percent invested in listed companies, unlisted companies, and real estate.[1] The number of account holders as of the end of 2014 was about 1.45 million.[1]

Pension Towers[edit]

Beginning in the early 2000s, NSSFU has been developing an office complex known as Pension Towers, along Lumumba Avenue, on Nakasero Hill, one of the most prestigious neighborhoods in Kampala, Uganda's capital city. The complex consists of three interconnected towers; one central tower of twenty-five stories in height, flanked on either side by a ten-story tower. Roko Construction Company, a Ugandan construction company constructed the four basement floors between 2008 and 2012, but failed to qualify for further works on the project. Three Chinese firms are in a final bidding process to complete the construction, between 2012 and 2015. Construction costs for the complex are estimated at UGX:260 billion.[6] When finished, the three towers will contain in excess of 59,410 square metres (639,500 sq ft) in office space. Parking for over 500 vehicles will be provided in the development.[7]

Governance[edit]

Board of directors[edit]

Ugandan Minister of Finance Matia Kasaija appointed a new board of directors in September 2015 composed of the following members:[8]

  1. Patrick Byabakama Kaberenge - chairman
  2. Pius Bigirimaana
  3. Sarah Walusimbi - vice chairperson
  4. Patrick Ocailap
  5. Peninnah Tukamwesiga
  6. Richard Byarugaba - managing director and chief executive officer

Management[edit]

The management of the NSSF consisted of the following individuals as of October 2015:[9]

  • Richard Byarugaba - managing director[10]
  • Geraldine Ssali Busuulwa - deputy managing director[11]
  • Richard Wejuli Wabwire - corporation secretary
  • Edward Ssenyonjo - acting head of risk
  • Patrick Ayota - chief finance officer
  • Solomon P. Muganwa - head of information technology
  • Barbara Teddy Arimi - head of marketing and communications
  • Barigye Geoffrey - head of internal audit
  • Christine Kasule-Mulimba - acting head of human resources
  • George Kyarikunda - head of administration
  • Stevens Mwanje - head of sales and operations
  • Gerald Paul Kasaato - head of investments

Branch network[edit]

As of October 2015, NSSF had a branch network of 19 branches in the central, eastern, northern, and western parts of Uganda, with six in Kampala, the capital.[12]

  1. Head Office - Workers House, One Pilkington Road, Kampala
  2. Bugolobi Branch
  3. Kireka Branch
  4. Entebbe Branch
  5. Kawempe Branch
  6. Bakuli Branch
  7. Arua Branch - Arua
  8. Gulu Branch - Gulu
  9. Lira Branch - Lira
  10. Soroti Branch - Soroti
  11. Mbale Branch - Mbale
  12. Jinja Branch - Jinja
  13. Lugazi Branch - Lugazi
  14. Masaka Branch - Masaka
  15. Masindi Branch - Masindi
  16. Hoima Branch - Hoima
  17. Fort Portal Branch - Fort Portal
  18. Mbarara Branch - Mbarara
  19. Kabale Branch - Kabale

See also[edit]

References[edit]

  1. ^ a b c d e Sanya, Samuel (22 January 2015). "NSSF's half-year profits hit sh202b, assets at 5 trillion". New Vision (Kampala). Retrieved 14 October 2015. 
  2. ^ PTV (17 February 2009). "Uganda First Lady named cabinet minister". PressTv.com (PTV). Retrieved 14 October 2015. 
  3. ^ Busuulwa, Bernard (3 April 2009). "NSSF turns to fund managers". The EastAfrican. Retrieved 14 October 2015. 
  4. ^ Kidimu, Gilbert (12 September 2013). "Uganda: Workers to Benefit From Pension Reforms". New Vision (Kampala) via AllAfrica.com. Retrieved 14 October 2015. 
  5. ^ a b c d e "Financial Statements for the Year Ended 30th June, 2014 Together with the Report and Opinion Thereon of the Auditor General", Uganda Office of the Auditor General, 29 October 2014, accessed 14 October 2015
  6. ^ Mugabe, David (23 May 2012). "NSSF constructs Uganda's tallest tower". New Vision. Retrieved 14 October 2015. 
  7. ^ NSSFU (2011). "Pension Towers to reduce office space shortage in Kampala". NSSF Uganda (NSSFU). Retrieved 14 October 2015. 
  8. ^ Monitor Reporter (29 September 2015). "Finance minister names Kaberenge new NSSF Chair". Daily Monitor. Kampala. Retrieved 14 October 2015. 
  9. ^ NSSF (October 2015). "NSSF Management". National Social Security Fund (NSSF). Retrieved 14 October 2015. 
  10. ^ Vision, Reporter (29 October 2014). "Byarugaba bounces back as NSSF boss". New Vision (Kampala). Retrieved 14 October 2015. 
  11. ^ Mukasa, Henry (20 March 2011). "NSSF gets new deputy director". New Vision. Retrieved 14 October 2015. 
  12. ^ NSSF (October 2015). "Branch Directory". NSSF. Retrieved 14 October 2015. 

External links[edit]