Makerere University Retirement Benefits Scheme (MURBS) has posted a strong financial performance in the year ended June, with its total assets rising from Shs409b to Shs475b.
The scheme registered an increase of Shs65b, driven largely by returns on investments in government securities, which accounted for 86.3 percent of total investments in real estate, equities, fixed deposits, and unit trusts.
The scheme currently has 3,368 active members and paid Shs21.7b in benefits to members against Shs36.57b in total contributions.
This included Sh18b in normal retirements, Sh227m for members relocating abroad, Sh147m in death benefits, and Sh2.8b in mid-term access.
In partnership with ICEA, the scheme also facilitated annuities worth Sh180m for retiring members.
Dr Michael Kizito, the board of trustees chairperson, said the growth was largely driven by strong performance in treasury bonds.
‘Yes, we have a lot of concentration in the treasury bonds. They are the ones at the moment that bring in the good returns,’ he said.
However, Dr Kizito noted that the university council had not remitted member contributions since the year started, which is not a good thing.
‘Of course, there are some historical debts, which, like you heard, the chair council and vice chancellor, have committed to pay,’ he said, but noted that historical arrears of Sh747m dating back to 2014, remain unpaid.
Mr Mark Straicus Lotukei, the Uganda Retirement Benefits Regulatory Authority manager of market conduct supervision, who represented the chief executive officer, said while the Makerere University scheme may not yet rival NSSF in scale, its steady progress reflects maturity and resilience in Uganda’s retirement benefits sector.
‘A well-managed scheme like [Makerere University’s] inspires confidence,’ he said. During the year, total contributions stood at Sh20b, split equally between the employer and employees at Sh10b each.
Contracts and projects added Sh1.3b, voluntary member contributions totaled Sh156m, while the scheme’s secretariat contributed Sh40m.
The scheme now has 8,515 members, including 3,368 active contributors and 5,147 deferred members, whose savings continue to grow within the scheme.
To reduce concentration risk, the scheme plans to diversify beyond government securities into alternative, higher-yielding investments such as infrastructure, private equity, and other emerging asset classes, while maintaining the safety of members’ funds.