Makerere University Retirement Benefits Scheme (MURBS), a mandatory employer scheme for Makerere University staff, has paid 13.4 per cent interest to its members for the 2023/2024 financial year.

As at June 30, the Fund value stood at Shs409.2b; This reflects an annual growth of 16.2 per cent (Shs352.4b) over the previous year (Shs56,838,969,000) and 95 per cent over the five-year period.

Interest of 13.4 per cent, totaling Shs44.9 billion, said Dr Dr, chairman of the scheme’s board of trustees, at the 14th Annual General Meeting (AGM) of the members at Makerere University on Thursday. Explained by Elizabeth Nansubuga.

Interest was transferred to the accounts of 8,950 members of the program.

“For the Financial Year under review, taking into account net assets available for member benefits of Shs409.4b and adjustments made, the Board of Trustees distributed Shs44,873,804,000 to members’ opening balances for the 2023/2024 Financial Year. As a result, the trustees granted members an interest rate of 13.40 percent; this was the highest rate in the last five years,” said Dr. Nansubuga.

Contributions remain a critical pillar of the program’s financial health. According to Dr Nansubuga, sponsor Makerere University transferred all contributions for the 2023/2024 financial year and the total contributions collected/received stood at Shs34.4b.

Of this, Shs28.7b was given to staff on Makerere University’s main payroll, Shs5.37b was given to contract and project staff, while Shs199.3m was given to AVC subscribers and the MURBS Secretariat.

“It is noteworthy that the contributions from the sponsor are transferred in a timely manner and compliance with the relevant legislation is ensured. “This level of compliance reflects the sponsor’s ongoing commitment to ensuring that its staff retire with dignity,” he said, adding that the Board remains committed to ensuring contributions are paid consistently and on time; managed prudently and invested in line with the Programme’s Investment Policy Statement.

Dr Nansubuga also attributed the programme’s good performance to “the positive outcome in a major legal case with significant implications for the programme”.

He added: “As you all know, we have invested in real estate where the Scheme is challenging the Uganda Revenue Authority tax assessment of Shs600m as withholding tax. We went to court and won the case. “This court decision, awarded with costs, not only protected member funds, but also set a precedent, confirmed the legal acumen and soundness of the scheme, and strengthened the integrity of our operations.”

Total benefits paid during the 2023/2024 Financial Year amounted to Shs25.06b paid to 777 members; This is more than double the number of members paid in the previous year (342 members).

More than half (51 per cent) of the benefits paid (Shs12.7b) were attributed to normal retirement benefits for 161 members.

Notably, with this financial year being a ‘interim year’, the Board of Trustees also paid Shs11.2b to 594 members; 64 percent of them were men and the average payment period was 10 days.

Additionally, the scheme also paid Shs2.9b as final payment to 658 in-house beneficiaries.

According to Mr David Ssenoga, chairman of the CPA Audit Committee, the scheme has significantly reduced the debt burden of Shs8.85b through full recovery of In-House Retirement Benefits (IHRBS) and outstanding contributions by the sponsor.

“The inter-institutional debt was long outstanding debt (including interest) totaling Shs25.1b from Makerere University due to debts of IHRBS. “During the 2023/2024 Financial Year, the Scheme has recovered Shs8.1b, balancing the total in-house debt,” he said, adding that 86 per cent of the scheme’s funds are invested in Government Securities, 4.4 per cent in real estate and 9.4 per cent in government bonds. it added 0.2 per cent in unit trusts and shares.

“Government bonds offer a more stable return,” he added.