Social fund starts process to select best retiree investors

August 23, 2019 in Finance, Financial Services, Investment by Editor

Arimi said NSSF has received 447 entries from members who have put to good use their retirement benefits in a competition that started last month.

August 23— National Social Security Fund (NSSF) has started the process of choosing from entries of people who feel they have invested their terminal benefits in the most useful and profitable way.

NSSF, a mandatory contribution scheme, is sitting on about $2.7 billion in assets and annually nearly $500 million in cash goes to its coffers from members’ contributions and investment income.

Now in its third year, the NSSF ‘Friends with benefits’ campaign, is a television show designed to help strengthen the savings culture in Uganda.  Increasing financial literacy among savers, by showcasing successful stories of NSSF beneficiaries is another reason for the TV series, with winners vying for the total UGX 55 million ($15,000) in prize money.

“We have received 447 entries from NSSF members who have put to good use their retirement benefits received from the Fund. From these entries, we shall go through a vigorous verification process and shortlist 16 inspiring stories that will then feature on the TV show,” Barbra Arimi, NSSF Head of Marketing  and Communications said in a news briefing.

According to NSSF officials, 30 stories of the 447 have already been selected and currently under review by a team of judges. A list of those through to the next round will soon be announced.

Arimi said, “This year’s submissions include success stories ranging from investments in agriculture, hospitality, tours and travel, business, tourism, real estate, education among others. These stories, we believe, will inspire millions of Ugandans who are either saving with NSSF or are yet to start saving with NSSF to register with the Fund in order to ensure a better life.”

NSSF says there has been a 29 pc increase in the amount of money paid in from benefits. In  2017,total  contributions were UGX 278 billion ($75 million), but in 2018, the figure reached UGX 360 billion (just short of $100 million). The number of beneficiaries also increased from 19,027 to 23,665.

The entries are categorized in the Age benefit given to a member who has reached 55 years; Survivors Benefit, Withdrawal Benefit, Invalidity Benefit, Exempted Employment paid to members that join employment categories that are exempted from NSSF contributions; and Emigration Grant paid to a contributing member who has been working in Uganda and is leaving the country permanently.

“We chose stories that are inspirational, stories that stand out in terms of creativity, and have changed lives of the beneficiaries. We also considered stories that have financial viability and have sustained or are able to sustain the member throughout the period of retirement,” Arimi said.

The TV show will start airing in October 2019 and the eventual winners will be selected through voting by the public and a panel of judges.