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Changes to increase NSSF savers in the offing, says MD Byarugaba
Commissioned. State minister for Lands, Dr Chris Baryomunsi ( right), the NSSF Managing Director, Mr Richard Byarugaba (left) and other officials at the opening of Mbarara City House building on Thursday. PHOTO BY ALFRED TUMUSHABE
What you need to know:
- The State minister for Lands, Housing and Urban Development, Dr Chris Baryomunsi, who represented the Prime Minister, said the investment has given a facelift to Mbarara at the time it has been granted city status.
Amending the National Social Security Fund (NSSF) Act will enable more income earners to save and create new benefits for members, Mr Richard Byarugaba, the managing director of NSSF, has said.
Currently, companies must have at least five employees to be able to register with NSSF.
NSSF has two million members and an asset base of Shs11 trillion. Uganda has a labour force of about 17 million people.
Mr Byarugaba on Thursday said Cabinet has already approved proposed amendments envisaged to increase the number of savers, and that Parliament is about to receive the draft Bill.
“It is proposed that all company employees save with NSSF. The law will also allow those in the informal sector to save with NSSF,” Mr Byarugaba said at the opening of Mbarara City House, a building NSSF erected as part of its investments.
He added: “The amendment will also allow NSSF to create new products. The products that we have been giving to our members are related to pension. We now want to increase products for example housing, medical and others we deem are important to our members.”
The four-floor modern retail and office complex has been built at a cost of Shs3.9 billion. The complex is real estate grade ‘A’ product with CCTV cameras, internet connections, air conditioning, fire suppression equipment and lifts, and gives good view of Mbarara City.
Mr Byarugaba said the complex will house NSSF regional offices and the other space will be rented out to organisations and companies that want modern working space and environment.
“This is going to give our members good return. Whenever we do an investment we are looking at a return of about 20 per cent per annum. We believe that the rent we are going to collect from this building will give our members very good return,” he said.
He said they have already established a similar infrastructure in Jinja and others are being established in Mbale and Gulu towns.
“Mbarara City House is a milestone for the Fund because it is yet another step towards the realisation of our real estate strategy focused on creating value for our members through constructing commercial buildings and housing estates in major towns in Uganda,” he said.
Mr Byarugaba added: “Projects such as these enable us give our members a reasonable and consistent return while preserving their savings, paying them an annual return which is two per cent above the 10 year inflation.”
The State minister for Lands, Housing and Urban Development, Dr Chris Baryomunsi, who represented the Prime Minister, said the investment has given a facelift to Mbarara at the time it has been granted city status.
“Projects such as these contribute to infrastructural development within the country and also support the national development agenda. With such investments, NSSF earns more money, which makes it possible for the Fund to continue giving good value to members and improving lives as we works towards attaining Sustainable Development Goals,” he said.
He encouraged people to save for old age and pledged government support to the proposed amendments in the NSSF Act.
