Workers’ contributions to RSSB hit Rwf87b mark

Rwanda Social Security Board (RSSB) investment returns hit Rwf19.3b in 2013, up from Rwf15.8b the previous year, the fund officials have said. Its investment portfolio has also recorded notable increases from Rwf301.1b in June 2012 to Rwf371.4b in June 2013, according to Dr. Daniel Ufitikirezi, the deputy director general in charge of fund management. The contributions collected were also up, hitting highs of Rwf87.1b last year as compared to Rwf70.5b during 2012, Ufitikirezi said. Angelique Kantengwa, the Rwanda Social Security Board director general, attributed the performance to vigorous efforts by the body to mobilise employers to remit employees’ contributions. Statistics indicate that the body’s real estate projects accounted for 22 per cent of the investments over the period, bank term deposits 35.7 per cent, while 1.8 per cent was in corporate bonds and loans. Treasury bonds were 21.4 per cent, foreign and local equity 18.6 per cent and 0.5 per cent of the total investment portfolios was in mortgages. She said RSSB always puts into consideration the country’s broader development programmes whenever it designs a project, especially as envisaged under the second phase of the Economic Development and Poverty Reduction Strategy (EDPRS II). “Basically, we want to develop different projects to address the challenges our society faces, including building decent and affordable urban housing for the people and contributors,” she said. She added that the body ensures that every employer remits social security contributions of their workers. Although the board’s director of public relations, communication and education, Moses Kazoora, said the number of firms that default on remitting their employees has decreased, he did not indicate how many they are and the amount the body demands from them. He said the body is still compiling returns for the past year. “The number of defaulters has reduced because of the numerous awareness campaigns the board has been conducting and sustained auditing measures we employ,” Kazoora said. Kazoora said defaulters are normally warned and given 15 days to comply, “when they fail, other measures are taken against them, including auctioning their property”. “We normally warn them three times before we seek redress from the law,” Kazoora noted. RSSB figures indicate that benefits paid out both in medical and pension schemes increased from Rwf17,858,091,472 in 2012 to Rwf20,964,734,255 during 2013. There were 322,888 2011/12 people registered under the pension scheme in 2012/12, but the figure increased to 352,085 in 2012/13. Rwanda Social Security Board raises it finance from employees’ contributions. For the pension and occupational hazard scheme, the total contribution is 8 per cent of the employees’ gross salary, of which 5 per cent is contributed by the employers and 3 per cent by the employees. Of the 5 per cent paid by the employer, 2 per cent goes to occupational hazards and the remaining 3 per cent is for pension.

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Workers’ contributions to RSSB hit Rwf87b mark