March 4: The government has not invested most of the amount collected under the contribution-based Social Security Fund (SSF) in profit-generating sector. The fund was launched by the then government led by KP Sharma Oli with tall promises.

However, the government’s inability to mobilize billions of rupees collected under various headings, including the social security program, in profit-generating programmes, has poured cold water on the chances of  investors getting additional benefits. 

According to the SSF, it has so far collected Rs 43 billion under different headings from the contributors of the private sector who have been promised of post-retirement benefits and various other facilities. The contribution amount under the social security program is Rs 13.37 billion. Similarly, Rs 28 billion of National Welfare Fund is also with SSF. Likewise, SSF has also collected Rs 1 billion under social security tax and Rs 2 billion under various other topics. 

The officials of SSF say that only Rs 2 billion has been mobilised out of the collected amount. As per the investment procedure of SSF, it can invest the amount in government bonds, shares, debentures, mutual funds and fixed assets. 

According to the deputy executive director of the fund Bibek Panthi, out of the amount collected by SSF, Rs 2 billion has been invested in debentures while the rest is kept in fixed deposit account. "Most of the money is kept in a fixed deposit account. The average interest rate is 8 percent. Preparations are being made to invest more money," he said. 

The council of ministers had passed a work procedure one and a half years ago to invest the money of the fund in different sectors. 

After the issuance of this procedure, the amount of contributors was expected to be invested in various sectors. Although investing in this way is expected to increase the income of the fund, the SSF does not seem to be able to make investment.