All the financial figures and projections provided at the 3rd Annual General Meeting indicate a great improvement in the finances of the Makerere University Retirement Benefits Scheme (MURBS).

Addressing the members at the Annual General Meeting (AGM) held on Thursday 7th November 2013, in Lab 2 at the College of Computing and Information Sciences (CoCIS), the Chairperson Board of Trustees, Hajjati Fatumah Nakatudde said:  “We are happy to report that for the financial year ended 30th June 2013, the MURBS made a Gross income of UGX 8.6billion and Net income of UGX 5.4billion. The total Fund Value as of June 2013 stood at UGX 78.8billion. It is also important to note that it is during the same financial year that the NIC/DAP monies amounting to over UGX 20billion were paid out in benefits.”

The Board Secretary, Dr. John Kitayimbwa pointed out that the Board of Trustees (BoT) takes responsibility of the interest declared at 12.6% and applauded the fund managers for performing over and above BoT’s expectations.

“Our rate of return this year was 15.4%. Our declared interest for the year is 12.6% because we must have a reserve to absorb shocks and changes in the market. Compared with institutions/bodies that provide similar services in our current market, an interest ate of 12.6% is very good,” reechoed Dr. Kitayimbwa.
 

Also commenting on the declared interest rate of 12.6%, Dr. Saul Nsubuga, Member of the BoT said: “It is better to accrue a fair interest rate, within a regulated framework, but ensure that this money is available on retirement.”

The well attended 3rd Annual General meeting (AGM) was characterized by precise questions and comments directed at the BoT, indicative of a strong desire for information sharing and exchange of ideas, appreciation for the work done, optimism and goodwill. The same scene played out as highlights of the Financial and External Auditor’s Reports for the Year ended June 2013 were presented.

The day’s emcee Mr. Louis Kakinda provided a brief reflection on the 2nd AGM held on 25th October 2012; presented the agenda of the 3rd AGM and also introduced the current BoT comprising;  Hajjati Fatumah Nakatudde (Chairperson), Dr. John Kitayimbwa (Secretary), Ms. Edna Rugumayo, Dr. Saul Nsubuga, Mr. Dyson W. Maswere, Prof. Julius Zake, Mr. Bruce Twesigye and Ms Miriam Magala.

With regard to general composition, all permanent employees of the university under the age of 50 are eligible to join the MURBS as contributing members. During the AGM, the BoT made reference to the Trustee Deed signed between Makerere University and the MURBS, which stipulates that all permanent members of staff are eligible to join the Fund and therefore advised members to fill in the registration forms to enable BoT track all the finances due to them.

Another key message shared by the BoT assured the members that unlike past experiences with other pension/retirement schemes where members of staff retired without payment due to them, MURBS is committed to ensuring that the money is timely given to the concerned member upon retirement.

In the same spirit, members were advised that in addition to the designated 5% deducted from their salaries, they could liaise with the MURBS Secretariat and fill out forms to voluntarily increase their monthly contribution, which will inevitably increase on the savings they will access on retirement.

The Board Secretary, Dr. John Kitayimbwa thanked the members for supporting the current Board of Trustees since they assumed office on 1st April 2013.  “The term of office for the previous Board of Trustees chaired by Dr. Augustus Nuwagaba ended on 31st March 2013. A new BoT chaired by Hajjati Fatumah Nakatudde was constituted following the provisions in the Trustee Deed. We thank the previous BoT for laying a firm foundation. We also thank you members for supporting the new BoT to seamlessly transition into service,” remarked Dr. Kitayimbwa.

In agreement, one member, Ms Grace Christine Bazaya applauded the old and current BoT and the Executives of Staff Associations for working tirelessly to deliver the NIC/DAP funds to members at the time they needed it most.  Commenting on the future of MURBS, Ms Bazaya proposed a mechanism of checks and balances to ensure accountability and transparency at all levels.

Regarding the members’ contributions which are yet to be remitted by Makerere University to MURBS, Hajjati Fatumah Nakatudde reported that BoT had sued the University, but were advised to settle the matter out of court and since then several negotiation meetings have been held between BoT and the University Management. However, since the Makerere University Council is the employer, a joint committee comprising membership from BoT and University Management is scheduled to present to the University Council on whether to pay interest on the contributions from the members who benefited from the previous In-house Retirement Scheme. She added that BoT is committed to the welfare of her members and they were optimistic that the negotiations at the different levels would all yield positive results.

According to the External Auditors Report to the members of MURBS by Ernst & Young-Certified Public Accountants, the financial statements presented fairly, in all material respects, the statement of net assets available for benefits of MURBS as at 30 June 2013. Ernst & Young further assented, that the reports represented changes in the net assets available for benefits and cash flows for the year then ended, in accordance with International Financial Reporting Standards and the Requirements of the Trust Deed.

The Fund Managers, Pine Bridge Investments (E.A.) Limited (PINE) and STANLIB in their report informed the AGM that they prepared the financials and shared the information with the Auditors.

“The Year closed with UGX 78.8billion. There was a reduction in the fund by UGX 5.7billion because of the NIC/ DAP funds which were paid out to the members during the year. The assets as of June 2013 added up to UGX. 78.8billion. If the MURBS was to be wound up today, we would sell our assets worth UGX 78.8billion and pay our liability,” highlighted the statement from PINE and STANLIB.

Responding to the Fund Managers’ report, the Board Secretary, Dr. John Kitayimbwa had this to say
“The Fund Managers work on behalf of the BoT, which takes full responsibility of the interest declared. The two fund managers (PINE and STANLIB) performed over and above our expectations. The Board of Trustees will consider giving them a bonus,’’ commended Dr. Kitayimbwa.

To toast to this historic achievement, the BoT hosted a cocktail for its Members at the Makerere University Guest House.

Story by:   Ritah Namisango and Mark Wamai, Public Relations Office
Photos by:  Henry Mukasa, Service Provider