By Our Reporter
Kampala
When the board of trustees of Makerere University Retirement Benefits Scheme MURBS approved their strategic plan 2023/28 there was strong hope that it would meet the set strategic goals and objectives.
The plan which focuses at four strategic themes namely members financial sustainability, institutional capacity and stakeholders among others has since been operationalized to guide the scheme s strategic direction for the next five years.
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The strategic objectives according to the board chairperson Elizabeth Patricia Nansubuga include, increasing membership satisfaction levels, growing the fund by an annual average of 17% over the next five-year period, strengthening the capacity of trustees and the secretariat as well as enhancing governance and achieving stakeholder satisfaction among others.
Nansubuga pointed out that some of the key strategic initiatives include implementing product and service innovation, enforcing compliance for contributions, upholding continuous trustees’ development, as well as developing and implementing effective stakeholder engagement strategies among others.
Turning to the membership status, Nansubuga reported to the recent annual general meeting that was held at Makerere University that as at 30th June 2023,the scheme had 3,041 active members and 5,188 deferred with a cumulative total of 8,229 members rising from 3,093 active and 4,069 deferred giving a total of 7,162 members by last June 2023 with the increase in deferred membership was a result of the reinstated beneficiaries of the in house scheme after MURBS made recoveries in favor of the in house scheme.
BENEFITS PAID OUT
The scheme report noted that in the course of the FY 2022/2023; the trustees paid out UGX22;4BN in member benefits to retiring members who were applicants form mid-term access MTA and beneficiaries of the in-house scheme which outflow was nearly twice the benefits paid out the previous year and was the highest benefits payment outflow made in a single year since 2012
The outflow was mainly impacted by a rise in the individual amounts payable to retiring members and the threshold of death benefits paid to beneficiaries as well as the introduction of the MTA during the year however the report suggested that the scheme demonstrated efficiency in paying out MTA benefits worth 2,2bn to 125 members in less than one month.
FUND VALUE AND NET RETURN
The report says that as at June 30th 2023 MURBS Net assets grew by 17,7% rising to 352Bn down from UGX 299Bn at the start of the financial year which growth was reportedly largely a result of their good and skillful aggressive investment strategies.
Throughout the year trustees closely monitored and aligned investment strategies to the expectations of the new dispensation guaranteed the required liquidity and ensured the achievement of MURBS target of an annual interest of at least 10% awarded to members consequently the trustees are happy to note that the scheme delivered a net return on investments of UGX 42;3Bn
INVESTMENTS
During the year, trustees reportedly invested funds according to the report in accordance with their scheme investment policy statement and the URBRA investment guidelines therefore the scheme secured URBRA s approval to vary the upper limit of holding in government securities and took advantage of it to hold over 80% of the fund in treasury bonds.
The scheme remained conservative in regard to investments in unit trusts, guaranteed funds and real estate bringing a total investment of the scheme standing at UGX355bn at 30th June 2023 rising from UGX 301bn at June 2022 respectively.
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INCOME DISTRIBUTION
Considering the net assets available for member benefits of UGX 352bn and adjustments made, the board reportedly distributed UGX 36,108,835,201 to members opening balances for the FY 2022/23 and as a result, the trustees have awarded an interest rate of 12,34% to the members of MURBS for the FY2022/23 respectively.
URBRA 10 YEAR COMMEMORATION
The report lastly concludes by saying that MURBS welcomed and hosted URBRA officials and distinguished guests from the International Organization of Pensions Supervisors IOPS of which team reportedly conducted a collaborative dialogue on pension schemes and MURBS was selected to host the activity as part of the activities commemorating URBRA s 10 years of service delivery to the country
Meanwhile the URBRA executive director Julius Nsubuga commended MURBS for being the single and smart largest savers scheme in the country just behind NSSF for conducting their activities professionally and meeting all their client set targets saying URBRA wishes them the best in the new year 2024.