Social security funds increase by 15.6 pct
23rd January 2012
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Director General of Social Security Regulatory Authority (SSRA) Irene Isaka.
In
a presentation to the National Board of Accountants and Auditors (NBAA)
seminar for pension funds and employees benefits, Isaka attributed the
growth mainly to the improvement in compliance and increase in salaries.
The
funds’ 2010 audited accounts showed that investments have recorded a
growth of 21 percent, while membership grew by 11percent to 1.3million
taking into consideration members of National Health Insurance Fund
(NHIF).
The
SSRA said contributions increased by 12.3 percent while benefits
payments increased by 74 percent exhibiting an exponential growth of
benefits obligations.
She
said that during the year investments in fixed income assets were about
71.4 percent (which include treasury bills, treasury bonds, fixed
deposits, loans, promissory notes) while properties were 20.3 percent
and equities 8.3 percent.
She
said that SSRA had during last year registered all six social security
mandatory schemes in mainland Tanzania and reviewed the existing
legislation that established them.
The
SSRA is to draft amendments aimed at harmonising the legal and
regulatory framework of the Social Security industry in mainland
Tanzania.
She
said in collaboration with the Bank of Tanzania, SSRA conducted a
comprehensive actuarial valuation to establish the health status of the
Funds.
“The
actuarial valuation is at the final stages whereby the actuary is
currently analysing the impact of reform parameters for each Fund. We
want to know how each Fund can sustain reforms,” she said.
The implementation of harmonisation of the sector is however dependent on the endorsement of amendments of the legislations.
Further
SSRA in collaboration with the BoT conducted portfolio review that
enabled the preparation of investments guidelines, which will be issued
soon, she said.
Regarding
public education, she said the SSRA held a number of seminars and
workshops and launched a Social Security Week (SSW) for the first time
in Tanzania.
She cited financial constraints as one of SSRA’s challenges: “This impediment led to shelving of some activities.”
Other
challenges are delays in the process of benefits claims, inadequacy of
benefits, limited areas of investments and the problem of
transferability which is rampant in the sector and members are deprived
of their benefits due to transfers.
She
revealed that SSRA has started working on the problem in collaboration
with the Ministry of Labour and will issue portability regulations
within the 1st quarter of this year.
She
said SSRA in collaboration with the parent Ministry will start with
registration of custodians and fund managers, undertake supervisions to
ensure compliance, issue Investments guidelines, issue benefits
guidelines and portability regulations.
Ms Isaka said others are actuarial, board, data management, risk management of social security funds and mortgage guidelines.
SOURCE:
THE GUARDIAN
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