SSRA tackles social security challenges
7th October 2011
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SSRA Director General Irene Isaka
This was revealed by the SSRA Director General Irene Isaka in a meeting with editors in Dar es Salaam yesterday.
She said the first challenge is the different legislations establishing the pension schemes.
Currently, Tanzania has five social
security schemes namely, National Social Security Fund (NSSF),
Parastatal Pensions Fund (PPF), Local Authorities Pensions Fund (LAPF),
Government Employees Provident Fund (GEPF) and the Public Service
Pensions Fund (PSPF).
Every scheme reports to a different ministry, Isaka observed, making the SSRA fail to easily harmonise their activities.
Giving an example, she said PSPF, PPF and
GEPF are under Finance ministry, NHIF is under Health and Social
Welfare ministry, NSSF is under Labour and Employment ministry, while
LAPF is under the Prime Minister’s Office (Regional Administration and
Local Governments).
She said the other challenges are the
different investment policies of the schemes and low level of
recruitment of pensioners by the schemes.
Other challenges are non transferability
of members, differences in members’ contributions, lack of reliable
data, differences in benefit calculations, high running costs and the
low level of social security awareness among Tanzanians.
She noted that SSRA has started to review
the laws establishing the various schemes in a move to harmonise them
for service improvement to its members.
The review, she said, would see all the challenges facing the pension schemes done away with.
She said the review would work to
increase members’ benefits, regulate the funds investment policies and
members’ transferability.
“We have been working together with the
Attorney General’s office and the Ministry of Labour, Employment and
Youth to effect amendments to the schemes’ legislations ready for
tabling in the coming Parliamentary session,” she said.
As regards lack of public awareness on
social security issues, the DG said the authority is developing a
communication strategy—including establishing a Social Security Week to
be held in Dar es Salaam between November 8 and 13, this year.
Isaka said SSRA is seriously committed to
addressing the challenges facing the sector and that once the
amendments are approved, members would be able to track implementation
of a number of regulations.
THE Social Security Regulatory Authority
(SSRA), in collaboration with the Bank of Tanzania (BoT), is undertaking
a comprehensive actuarial valuation of the five social security schemes
it regulates.
In a meeting with editors yesterday, SSRA
Director General Irene Kisaka said the valuation exercise would help
the authority to come up with a harmonised benefits structure including a
new pension formula aimed at improving members’ benefits and increase
sustainability of the schemes.
“We are looking at how best we can
enhance the members’ benefits without compromising the financial
stability of the sector and sustainability of the social security
schemes,” she said.
The DG also said that SSRA in
collaboration with the bank is undertaking a comprehensive portfolio
review of the schemes’ investment policy, investment process, portfolio
allocation and yield of each portfolio in the market.
“We expect the results of the review will
enable the regulator to prepare and disseminate uniform investment
guidelines to all social security schemes as per the SSRA Act,” she
noted.
The analysis will inform the government
on the best way to introduce new investment avenues in the market so as
to increase the areas of investments, she said. According to her, the
guidelines would be operational by early next year.
She revealed that the government will
ensure that the number of Tanzanians enjoying social security benefits
increases in the near future.
SOURCE:
THE GUARDIAN
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