Annual Report Table of Contents I List of Acronyms Iv Company Information 01 02 03 02 About the Fund 12 Our Business 46 Financial Review
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Annual Report Table Of Contents i List Of Acronyms iv Company Information 01 02 03 02 About The Fund 12 Our Business 46 Financial Review 02 30 Years of NSSF 13 Financial and Operational 48 Financial Performance Highlights 04 Our Locations 51 Business Review 19 Board Of Directors 05 Mission, Vision, Values 21 Senior Management Team 09 Why Save with NSSF 26 Chairman’s Statement 32 Managing Director’s Statement 37 Business Strategy 04 05 06 74 Corporate Governance and 102 Directors’ Report and Risk Management Financial Statements 170 Sustainability Report 75 Risk Management and Control 103 Statement of Directors’ 173 Responsible Business 85 Corporate Governance and Responsibility 185 Contributing to Sustainable Remuneration Report 104 Report of Auditor General on Economic Growth Financial Statements 189 Environmental Management 106 Financial Statements 193 Corporate Social Responsibility 110 Notes to the Financial Statements i ii List Of Acronyms ACCA Association of Chartered Certified Accountants NOTU National Organisation of Trade Unions AMM Annual Members’ Meeting NSE Nairobi Stock Exchange BA. Bachelor of Arts NSSF National Social Security Fund Bn. Billion PDL Premier Developments Limited BSc. Bachelor of Sciences Rd. Road CCW Customer Connect Week RSE Rwanda Stock Exchange COFTU Central Organisation Of Free Trade Unions SAA Strategic Asset Allocation CSR Corporate Social Responsibility SACA Staff Administration and Corporate Affairs Committee DSE Dar-Es-Salam Stock Exchange VPDL Victoria Properties Development Limited EIA Environmental Impact Assessment WHT Witholding Tax ExCo Executive Committee FCCA Fellow of the Chartered Certified Accountants IAS International Accounting Standards IASB International Accounting Standards Board ICPAU Institute of Certified Public Accountants of Uganda IFRS International Financial Reporting Standards K Thousand KCCA Kampala City Council Authority KPI Key Performance Indicator Kshs. Kenyan Shilling M Million MBA Masters of Business Administration MSc. Master of Science NEMA National Environmental Management Authority 1985-2015: 30 Years of Dedicated Service NSSF Annual Report 2015 iii iv Company Information NSSF Contact Information Bank of Baroda Uganda Limited Ligormac Advocates Head Office Plot 18 Kampala Road, 5th Floor Western Wing, 14th Floor, Workers House P.O.Box 7197, Kampala Social Security House, P.O.Box 10946, Kampala Plot No.1 Pilkington Road Housing Finance Bank Limited P.O.Box 7140, Kampala Plot 25 Kampala Road, P.O.Box 1539, Kampala Auditor Barclays Bank of Uganda Limited The Auditor General Plot 2A & 4A Nakasero Road, Office of the Auditor General P.O.Box 7101, Kampala Finance Building, Apollo Kaggwa Road P.O.Box 7083, Kampala Centenary Bank Mapeera House, Plot 44-46 Kampala Road, Delegated Auditor and Plot 2 Burton Street KPMG P.O.Box 1892, Kampala Certified Public Accountants 3rd Floor, Rwenzori Courts Advocates Plot 2 & 4a, Nakasero Road Birungyi, Barata & Associates P.O.Box 3509, Kampala Plot 3, Portal Avenue First Floor, Suite B1.6 P.O.Box 22971, Kampala Main Bankers Standard Chartered Bank Uganda Limited Kiwanuka & Karugire Advocates Speke Road Plot 5A2 Acacia Avenue, P.O.Box 7111, Kampala P.O.Box 6061, Kampala CitiBank Uganda Limited Muhimbura & Company Advocates Centre Court, Plot 4 Ternan Avenue, Nakasero Jumbo Plaza P.O.Box 7505, Kampala Plot 2, Parliament Avenue, P.O.Box 22971, Kampala DFCU Bank Limited Impala House, Kasirye, Byaruhanga & Company Advocates Plot 13 Kimathi Avenue, Plot 33, Clement Avenue, P.O.Box 70, Kampala P.O.Box 10946, Kampala Stanbic Bank Uganda Limited GP Advocates Plot 17 Hannington Road, (Formerly Omunyokol & Company Advocates) P.O.Box 7131, Kampala Colline House, 3rd Floor Plot 4, Pilkington Road, P.O.Box 6737, Kampala 1985-2015: 30 Years of Dedicated Service NSSF Annual Report 2015 1 2 OUR BUSINESS About The Fund 30 Years of NSSF NSSF At A Glance National Social Security Fund (NSSF) was established by the 1985 Act of Monthly Contributions Our People Our Portfolio Parliament to provide for its membership, the payment of contributions to, and the payment of benefits out of the Fund and for other purposes connected therewith. The Act made the Fund a statutory body. Currently, the Ministry of Finance, Planning and Economic Development is responsible for the policy oversight of the Fund. Following Uganda Retirement Benefits Regulatory Authority (URBRA) Real Estate Fixed Income Equity 65 Act 2011, NSSF will be forthwith regulated by URBRA. Billion UShs Registered Employers 420 Balance Sheet Size 30,000 Dedicated and Employers Proffessional Staff 5.6 Trillion (Total Assets) Registered Employees Keeping you updated 1,500,000 Registered Employees 1985-2015: 30 Years of Dedicated Service NSSF Annual Report 2015 3 4 OUR BUSINESS 1. Kampala Customer Service Centre Workers House. Our Nakasero Branch, Georgian House. Locations Kireka Branch, Plot 108 Kireka, Opp. Namugongo Rd. Bugolobi Branch, Millenium Plaza Building. 11 10 9 Kawempe Branch, 9. Lira Plot 43 Dr. Obote Avenue Plot 150, Bombo Rd. P.O. Box 406, Lira Bakuli Branch, Plot 341, Bakuli, Hoima Rd. 10. Gulu 12 Plot 23, Andrea Olal Road, 2. Entebbe Opposite. Total, Plot. 190 Kampala– Entebbe Rd, 8 P. O. Box 730, Gulu. Katabi. 13 11. Arua Plot 59, Weatherhead, 3. Mukono Bishop Tucker Rd, 7 Park Lane Mukono. 14 P.O.Box 418, Arua 6 12. Masindi 4. Masaka Plot 21, Edward Avenue, 3 Plot 54 Port Road P.O. Box 1290, Masaka P.O.Box, 119. 1 Masindi 2 5. Kabale Plot 143, Kabale Road 4 13. Hoima P.O.Box 203, Kabale Plot 54, Main Street, 15 P.O Box. 96, Hoima 6. Jinja Plot 2 Main Street, Post Office Building 14. Fort Portal P.O.Box 877, Jinja Plot 24, Kyebambe Rd 5 P.O. Box 250, Fort Portal 7. Mbale Plot 31, Naboa Road P.O.Box 1574, Mbale 15. Mbarara Plot 7/9 High Street Next to Bank of Baroda 8. Soroti Plot 58A Gweri Road, P.O. Box, 719, Mbarara P.O. Box, 878, Soroti 1985-2015: 30 Years of Dedicated Service NSSF Annual Report 2015 5 6 OUR BUSINESS Age Benefit: Payable to members who have reached the retirement age of 55. Age benefit can also be claimed on attaining the age of 50, provided the claimant has retired from employment. Our Vision To be the Social Security Provider of Choice. VISION Our Mission To secure a better life for our growing membership by providing quality products, great customer serviceMISSION and offering competitive returns in a transparent and efficient environment. 1985-2015: 30 Years of Dedicated Service NSSF Annual Report 2015 7 8 OUR BUSINESS Our Invalidity benefit: CUSTOMER CENTRIC INNOVATION Payable to a member who because of illness Core We are committed to We are a robust organization that is always or any occurrence develops incapacity to achieving higher levels of customer looking for new ways of delivering value to our satisfaction through continuous members. engage in gainful employment. In this case, improvement in our services. a medical practitioner’s report is required to Values ascertain the condition. Efficiency TEAMWORK We promise to continuously collabourate We are committed to developing and with stakeholders to discover and apply maintaining healthy internal relations safer, better, faster and more that harnesses respect, positive attitude cost-efficient ways to provide services and open mindedness in order to meet that our customers value. the demands of our customers. INTERGRITY We commit to be ethical and honest to inspire trust by matching our words to our actions. 1985-2015: 30 Years of Dedicated Service NSSF Annual Report 2015 9 10 OUR BUSINESS Why save with NSSF We are the biggest financial institution in the region with centres in all regions of Uganda manned by competent and energetic teams, availing our members with the very best in social security. We continue to be innovative in our products and services collecting member contribution, investing prudently – creating value and paying it out at the right time to qualifying beneficiaries in the shortest time possible. Survivors Benefit: How We Create Value Payable to the dependant(s) or Next of kin Assume we have three employees, A, B and C all of whom earn a monthly income of 200,000 UShs.. Also assume they have been of a deceased member. contributing to NSSF for 10, 20 and 25 years respectively. According to the NSSF Act, each is supposed to contribute 5% of their income(10,000 UShs.) to NSSF while their employers are supposed to contribute 10% of their income (20,000 UShs.) to NSSF. If we assume that the average interest paid out over the respective years is 5% then; Employee A Employee B Employee C Term of Employment: 10 Years Term of Employment: 20 Years Term of Employment: 25 Years UShs.1.2M UShs.2.4M UShs.3.0M Employee’s Total Employee’s Total Employee’s Total Contribution over his term Contribution over her term Contribution over his term of employment of employment of employment UShs.2.4M UShs.4.8M UShs.6.0M Employer’s Total contribution Employer’s Total contribution Employer’s Total contribution over the period of employment over the period of employment over the period of employment UShs.1.06M UShs.5.13M UShs.8.87M NSSF’s Total contribution over the NSSF’s Total contribution over the NSSF’s Total contribution over the period of employment period of employment period of employment UShs.4.66M UShs.12.3M UShs.17.87M Total Savings over the period Total Savings over the period Total Savings over the period We therefore see that over the long term, NSSF’s portion of the total benefit to the Member exceeds either the Employer or Member’s contribution 1985-2015: 30 Years of Dedicated Service NSSF Annual Report 2015 11 12 OUR BUSINESS NSSF Business Exempted Employment Benefit Collection of Members’ Savings Payable to members who join employment that provides an alternative social security scheme recognized under existing law NSSF is mandated to register eligible employers and employees.