Wider social security coverage underway
23rd June 2011
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Authority aims at 5 per cent membership by 2014
Social Security Regulatory Authority Director
General Irene Isaka briefs journalists in Dar es Salaam yesterday on her
agency`s role. This was at the Public Service Week exhibitions going on
at Mnazi Mmoja grounds.
Already the authority has started
addressing six challenges which hinders smooth functioning of the social
security funds countrywide.
Speaking to journalists in Dar es Salaam
yesterday, the SSRA Director General Irene Isaka said currently only 3.5
per cent of Tanzanians are registered with social security funds.
The percentage was not healthy for the
future of many Tanzanians, because when they get older they would not be
able to receive any social protection, she said.
“We want to increase the percentage to at least 5 per cent in the coming three years if all things go well,” she said.
Isaka said they plan to increase coverage
to farmers, pastoralists and other rural-based populations so far
neglected by the funds.
She said an increase will necessitate changes to the laws which established the various social security funds.
“Currently the law does not recognise our
authority. Once the Parliament has endorsed the changes we shall be
able to implement our strategies,” she added.
Isaka said the authority has formed a
research department which would study ways to increase the number of
Tanzanians in the social security funds.
She said they had improved the
communication department which would help sensitise Tanzanians on the
role of social security funds. The SSRA also plans to establish social
security week aimed at educating Tanzanians on its activities.
The DG named other challenges as
transferability of members from one fund to another, depreciation of the
value of shilling, lack of data and delayed member’s payments.
According to the DG, the authority that
was formed early this year would ensure schemes remain secure and
sustainable, members’ interests are protected and coverage is increased.
She also noted the task force which was established to address key challenges was about to complete its task
The taskforce drew its members from the
Attorney General’s chamber, the ministry of Finance, the Bank of
Tanzania, experts on Social Security from the International Labour
Organization (ILO) and the ministry of Labour, Employment and Youth
Development.
Experts say Tanzania has potential
opportunities that remain uncovered by the social security schemes and
which call for the government’s intervention to increase coverage.
A well-designed social security scheme should be broad-based with adequate coverage and be sustainable.
They say the authority should ensure that
funds are invested according to rules or investment guidelines as the
government looks at the possibility of widening coverage of social
security services in the country, to include people who are
self-employed in the informal sector.
Speaking to this paper in an interview,
Dr Kingu Said Mtemi said some pension funds were not performing well,
adding that there is a need for a review of the prevailing legislation
to allow members to cross to funds that are more efficient.
He said time has come for the law to
allow transferability of members from one fund to another to enable
members pick those which can benefit them most.
Mtemi also urged the government to make sure that pension funds remain secure and sustainable.
“Those who have been tasked to secure
members’ interests should make sure that they are protected and coverage
is increased and the funds are invested according to the prevailing
rules or investment guidelines,” he said.
He told the pension funds to review the members’ payment system saying most of them have become outdated.
“The shilling is ever depreciating,
inflation is skyrocketing and even the taxes have gone up, these funds
should now start paying members according to the value of the shilling,”
he stated.
At the moment, only 3.5 per cent of
Tanzanians are covered by the funds, while in Kenya coverage is 8 per
cent and Uganda is 11 percent.
SOURCE:
THE GUARDIAN
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