HakiPensheni

Tasks of social security entity set in perspective

By Joseph Mchekadona

20th February 2011

Email

Print

Comments

The newly established Social Security Regulatory Authority (SSRA) says the body will be responsible in regulating all social security services in the country so as to benefit locals.

The body further says that its main role will be to ensure sustainability of social security funds , protect the interests of all Tanzanians who are members of social security funds and increase coverage and reduce the burden of the government on the services of social security funds and it will also have great influence on socio-economic well being of all Tanzanians.

Speaking in Dar es Salaam, yesterday SSRA Chairman Juma Siraju Kaboyonga said his organisation will make sure that social security organizations in the country operate for the benefit of Tanzanians.

He said currently very few Tanzanians know the importance of social security funds and its benefits.

“In our country it’s a very small percentage of Tanzanians who know the importance of social security funds; some people think that joining the pensions funds is a waste of money” he said, adding that the number is very big in the informal sector where only 6.5 per cent of the working population are members of social security funds . He said the industry in the country faces many challenges which include lack of awareness of social security funds to the public , unreliable data and lack of segmentation benefits among others.

Kaboyonga said the biggest challenge currently facing the industry is different benefits packages offered by pension funds. He said six security fund providers in the country are under different ministries, and offer different benefits packages.

Kabonyonga said all pensions funds in the country are fragmented. He said the Parastatal Pension Fund (PPF), Public Service Pension Fund (PSPF) and Government Employers Pension Fund (GEPF) are under the Ministry of Finance while National Social Security Fund (NSSF) reports to the Ministry of Labour and Employment .

He further said the Local Authority Pension Fund (LAPF) and National Health Insurance Found (NHIF) report to the Prime Minister’s Office, and Ministry of Health, respectively .

He said workers of the same profession receive different pension packages because their social security organisations report to different ministries.

“Two people of the same profession start the same job on the same day but join different social security funds; they end up getting different packages because their respective pension funds are reporting to different ministries, ” he noted.

He also mentioned other reasons which are affecting the social security funds as having different investment policies, lack of transferability, unreliable data and lack of segmentation of benefits.

Kabonyonga cited other snags as high cost of administration, premature withdraws, lack of awareness of social security to the public and application of different pension factors.

Ansgar Africanus Mushi, the organisation’s director of research actuarial and policy analysis said his organisation will make sure that the interests of social security members are protected and safeguarded , facilitate extension of social security coverage on non covered areas which will include informal groups and initiate studies, recommend , coordinate and implement reforms in the social service sector .

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.

Mushi said his organisation has targeted many areas which they will work on agriculture, infrastructure development and mortgage facility.

SSRA was established under the Social Security Regulatory Act No. 8 of 2008 and its main objectives is to regulate the social security sector .

SOURCE: GUARDIAN ON SUNDAY