Makerere University Retirement Benefits Scheme Grows to Shs409 Billion

The Makerere University Retirement Benefits Scheme (MURBS) has recorded significant growth, with its fund value increasing to Shs409.2 billion for the financial year 2023/24. This was announced by the MURBS Board Chairperson, Dr. Elizabeth Patricia Nansubuga, during the presentation of the scheme’s performance report at a meeting held on October 22, 2024, at the Makerere University Senate Building.

The event, which preceded the MURBS Annual General Meeting (AGM) scheduled for October 24, 2024, was attended by several dignitaries, including Makerere University Vice Chancellor Prof. Barnabas Nawangwe, University Secretary Yusuf Kiranda, and Acting Deputy Vice Chancellor for Finance and Administration Prof. Henry Alinaitwe, among others. Representatives from the Uganda Retirement Benefits Regulatory Authority (URBRA) also attended.

A Growing Retirement Scheme
In her address, Dr. Nansubuga highlighted that MURBS has grown into the fourth-largest retirement benefits scheme in Uganda by fund value. "MURBS Trustees have worked through different challenges in the past years to make it a strong scheme," she said, acknowledging the efforts of both past and present leaders. "These challenges have also enabled the trustees to develop and establish good relations with different sector players and its principal stakeholders."

The fund’s value of Shs409.2 billion represents a 16.1% growth from the previous financial year. Dr. Nansubuga explained that although they fell slightly short of the 17% target, the milestone was still impressive, given the strategic actions taken by the Board and the support of fund managers. “By 30th June 2023, MURBS had a fund value of 352.4 billion. The Trustees targeted Fund growth of 17%, and I am glad to inform you that the fund value of MURBS, as per the Audited Financial Statements of 30th June 2024, is 409.2 billion, an increase of 16.1%, failing to hit the target by less than 1%,” she remarked.

Strong Financial Performance
MURBS recorded a net investment income of Shs44.6 billion, far exceeding the Shs34.4 billion collected in contributions during the year. Dr. Nansubuga emphasized that this impressive financial performance would benefit all members through increased interest rates on their balances, which will be officially declared during the upcoming AGM.

"The interest that the Trustees are awarding for the Financial Year ending June 30, 2024, will be higher than what was awarded in the previous year," Dr. Nansubuga revealed, noting that the official figure would be announced at the AGM.

Supporting Member Empowerment
The scheme’s leadership has also focused on empowering its members by providing extensive training to staff and trustees. MURBS has introduced training programs in areas such as Tax, Corporate Governance, Digital Trust, Cybersecurity, and Data Protection. Dr. Nansubuga stressed the importance of building capacity among the Board of Trustees to ensure that they are fully equipped to manage the scheme responsibly. “The Trustees set out to strengthen the Board’s capacity in various skills during the year,” she said.

The scheme’s strategic plan (2023/24 – 2027/28) revolves around four key pillars: Member satisfaction, Financial Sustainability, Institutional capacity, and Stakeholder satisfaction. This plan aims to improve overall management and governance while ensuring that MURBS continues to serve its members effectively.

Looking Ahead
The future of MURBS looks promising, with plans to continue growing the fund and enhancing member benefits. As of July 2023, 1,153 members held benefits above Shs100 million, and by June 2024, this number had risen to 1,166 members, even after issuing Shs11 billion in mid-term access benefits. The number of members with benefits over Shs250 million also increased to 538, with four members holding benefits of at least Shs500 million.