SSRA:Fragmented social security laws need to be harmonised

By Joseph Mchekadona
17th February 2011

The newly established Social Security Regulatory Authority (SSRA) has said the country’s laws on pension funds need to be harmonised to enable the pension providers offer better services to clients.

Speaking in Dar es Salaam yesterday, SSRA chairman Juma Siraju Kaboyonga said the laws, in their current state contravenes International Labour Organisation laws.

He said ILO laws require all social security providers in a given country not to have fragmented legal and regulatory framework.

He said six social security providers in Tanzania are under different ministries, the development of which makes them offer different benefit packages.

Explaining, he said, Parastatal Pension Fund (PPF), Public Service Pension Fund (PSPF) and Government Employers Pension Fund (GEPF) are under the Ministry of Finance and Economic Affairs, while National Social Security Fund (NSSF) reports to the Ministry of Labour, Youth and Employment.

He further explained that the Local Authority Pensions Fund (LAPF) and National Health Insurance Found (NHIF) reports to the Prime Minister’s Office—Regional Administration and Local Governments and the Ministry of Health and Social Welfare respectively.

Kaboyonga said workers of same profession were receiving different pension packages because their social security organisations reports to different ministries.

“Two people of the same profession get employment on the same date, but because circumstances may make them to join different social security funds, they end up getting different packages because their respective pension funds report to different ministries,” he noted.

He also mentioned other reasons which affect the funds as having different Investment policies, lack of transferability, unreliable data and lack of segmentation of benefits.

The SSRA chairman mentioned some of the challenges facing social security organisations as high costs of administration, premature withdraws, lack of awareness of the funds’ activities by members of the public and application of different pension factors.

“Social security organisations in the country are facing many challenges which make the industry looks less beneficial to the stakeholders,” he said.

He said his organisation will make sure that interests of social security members are protected, extension of social security coverage is facilitated on non covered areas to include informal groups, studies on the same are initiated and reforms in the social services sector are coordinated.

He also said that his organisation will create a conducive environment for the promotion and development of the social security sector and advise the minister on all policy and operations of the social security sector.

“We will work extra hard to see that all Tanzanians benefit from the funds by among other things, advise the respective ministers correctly on all policies and operations of the social security sector,” he said.

SSRA was established under the Social Security Regulatory Act No. 8 of 2008 and its main objectives are to regulate the social security sector.
SOURCE: THE GUARDIAN