The movement restrictions related to Covid-19 meant that field staff could not execute their mandate, especially with activities that required physical interaction. Relatedly, our employers too could not access the banks and bank agents to make their remittances. This mainly affected remote based employers with limited access to the internet.
The pandemic ravaged many sectors of the economy, especially tourism and education. As a result, the overall employer compliance closed at 51% against the target of 60%.
The Fund extended a contributions deferral initiative for employers negatively impacted by the pandemic. This enabled such entities to focus their resources on business survival without incurring penalties. We granted deferral of contributions worth UGX 23Bn per month to 1,730 eligible entities and revised existing payment plans with employers. This action distinguished the Fund as a responsible corporate citizen concerned with the long-term sustainability of businesses.
During the period, we adopted and witnessed increased uptake of digital solutions. The e-clearance platform enabled entities to apply and receive clearance certificates anytime anywhere without requiring physical interaction. These certificates play an important role in enabling companies to obtain business with Government agencies. During the year, 8,978 e-certificates were granted to eligible entities.
We also rolled out the self-assessment solution on the employer portal, enabling employers to undertake self-disclosures in the comfort of their offices/homes. These disclosures ensured outstanding social security contributions were recovered at no penalty to the employer.
The Fund also made huge investments in improving capabilities for working from home to the value of UGX 1.8 Bn. Our staff were trained and provided with the necessary tools to enable them to work remotely. We saw some functions, such as Compliance complete a higher number of compliance audits than prior to the lockdown; demonstrating increased productivity. The automation of the compliance audit process increased visibility of ongoing audits and enhanced transparency by creating an audit trail.
The role of performance management and analytics through different digital channels, enabled the team to download performance reports and insights in real time, empowering them to improve performance. Digital dashboards were critical in guiding the actions of field teams, improving their ability to serve customers.
Despite the negative impact of the pandemic, initiatives undertaken by the Fund resulted in positive outcomes, demonstrating resilience. The Fund collected UGX 1,367Bn (2020: 1,1,272Bn) against a target of 1,350Bn representing a 7.7% growth. Voluntary contributions grew by 28% to UGX 32Bn (UGX 25Bn in 2020). A total of 5,000 new members joined the voluntary portfolio and 126,000 new members and over 1,900 new mandatory employers were registered.
Our integration with the National Identification and Registration Authority-NIRA has enabled Fund members to undertake self-enrolment. Although many still require assistance to register, we have seen an increase in self-registration to 70%. This method of registration ensures convenience and increased data accuracy given that details submitted to NIRA are automatically updated on the Fund database.
Focus for the new FY2022 is largely dependent on the successful deployment of a new pension administration system. This system will enable completion of the integration with Uganda Revenue Authority, an initiative that will enhance information sharing between the two agencies and ultimately improve compliance.
We intend to refine the the audit platform to include capabilities for uploading source documents by employers, thereby reducing turnaround time of the audit process. In addition, the whistle-blower platform will be enhanced to capture more information that is critical in improving the turnaround time of handling member complaints. The Geo-mapping system will be rolled out to enable field teams to easily locate employers and capture field activities on the go.
There will be increased focus on Financial Literacy to members, with emphasis on scaling up the programme to reach wider audiences. This too will mean upskilling the field teams to undertake their new role in financial literacy for the members. More staff will be targeted to complete the CFA Institute Investment Foundations Programme to prepare them to take on new roles.