OUR BUSINESS:
Operating context
Geoffrey W. Sajjabi, Chief Commercial Officer
Member value creation
The year ended June 2024 will be remembered for our strong focus on creating value for members. We launched the Yo Benefits Campaign, targeting members eligible for age-related benefits, to support them in making prudent financial decisions. Collaborating with our Investments Department and experienced financial and retirement advisors, we pushed beyond traditional retirement benefits, addressing the adequacy, sustainability, and predictability of social security benefits.
Enhancing compliance and contributions
We introduced a new Whistleblower platform to empower members to report cases of non-compliance, thereby enhancing overall compliance and contributions, key to ensuring long-term security for our members. Additionally, we scaled our AI-supported integration with partners like the Uganda Revenue Authority, automating the generation of social security bills for employers. This initiative tackled under-declaration in employer remittances, creating additional value for our members.
Robust performance amidst challenges
Our initiatives contributed to impressive results across various areas, though we faced challenges in benefits turnaround time and voluntary contributions. Collections grew by 13%, reaching UGX 1.93Tn, compared to UGX 1.72Tn in the previous year. Arrears and new registrations added UGX 157Bn, accounting for over 70% of the growth. Active members increased by 5%, from 734,000 to 771,000, with significant contributions from the Trade and Financial Services sectors.
We registered 8,374 employers compared to the 6,827 recorded the previous year accounting for 23% growth. We also registered 203,446 new members compared to the 180,802 registered in the previous year. 58% of the newly registered members made contributions.
Member engagement and financial advisory impact
Through the Yo Benefits Campaign, we provided financial advisory services to over 12,000 members, leading to a notable shift toward drawdown plans and partial benefits. As a result, 1,069 members chose these options, retaining UGX 94Bn, a 56% retention rate.
This effort also saw an increase in deferred benefits, with over 76,673 members deferring applications totalling UGX 1.01Tn, reflecting growing member confidence in the Fund.
Addressing operational challenges
While we made progress, the Fund’s benefits payout time averaged 10.1 days, slightly above the 9-day target but an improvement from the previous year’s 12 days. Voluntary contributions fell short at UGX 18.9Bn against a target of UGX 24Bn, due to delays in gazetting new regulations. However, we reduced unallocated member funds to UGX 49Bn, the lowest in over five years, demonstrating our commitment to resolving this issue.
Priorities for the new year
As we move into the new year, our focus remains on member-centred initiatives that generate new value. We will continue to scale AI-enabled integrations with new partners to improve compliance and contributions, leverage data analytics to identify compliance gaps, and expand our physical and electronic footprint to enhance member convenience. We are also committed to implementing an automated customer feedback solution for real-time member input, and further reducing benefits turnaround time.
A NEW DAY - CREATING SHARED VALUE FOR SUSTAINABLE GROWTH