KATHMANDU, Nov 28: The Social Security Fund (SSF) has invested a total of Rs 126 billion including the government issued development bonds.
Speaking at a program to mark the 8th anniversary, the SSF Executive Director Kabiraj Adhikari said the organization has invested the aforementioned amount including Rs 95 billion contributed by the employees. According to him, the SSF’s investment portfolio includes Rs 58.89 billion in fixed deposits of banks, Rs 32.19 billion in treasury bills, Rs 21.76 billion in development bonds, Rs 4.52 billion in debentures and Rs 1.95 billion in mutual funds.
Portfolio Management
Likewise, the SSF has invested Rs 7.79 billion in advances to its 20,000 contributors. The fund has been providing advances at the subsidized interest rate of 5.2 percent per annum and education loans at the rate of 5.86 percent per annum to its contributors.
The government launched SSF aiming to start a contribution-based pension system to reduce financial burden to the state. The system aims to ensure social security rights for workers and minimize the economic and social risks they face.
The SSF has incorporated 649,511 workers from the formal sector, 1,996,579 workers in foreign employment, 799 workers in the informal sector and 582 self-employed individuals have already been enrolled in the schemes.
Adhikari said the inclusion of informal workers and self-employed individuals has remained slow, while the SSF faces a major challenge in bringing Nepal’s informal workforce into the formal social protection system. According to him, the SSF has signed a memorandum of understanding with 114 local bodies till the date.
