Act outlines the scope of new pensions authority

Posted  Monday, May 18  2009 at  00:00

Any person intending to establish or continue operating a pensions scheme or to act as a manager or custodian of one in Tanzania will be required to be registered under the new Social Security Regulatory Authority Act.

Every scheme must, within a period of three months after the end of the financial year, prepare a balance sheet, statement of income and expenditure, statement of assets and liabilities as on the last day of the year, as well as any other statement the Pension Funds Regulatory Authority may require.

The authority’s board of directors will comprise a chairman appointed by the president, alongside the Treasury Registrar, the Labour Commissioner, two representatives from the Tanzania Employers’

Association, two representatives from the Trade Union Congress of Tanzania, one social security expert, and the director general as an ex-officio member.

This is in order to prevent a recurrence of past mistakes.

The board will appoint a lawyer of not less than five years’ experience to be its legal officer and secretary.

The authority will, among other functions, register all managers, custodians and schemes; monitor and review regularly the performance of the social security sector; initiate studies, recommend, co-ordinate and implement reforms in the social security sector; and facilitate extension of social security coverage to non-covered areas, including informal groups.

Inspectors appointed by its director general will be empowered to inspect the actuarial valuation reports, books of accounts, records or any document at the premises where they are produced.

The authority and the central bank shall exchange information on all intended inspections or examinations.

A person convicted of an offence under the new law will be liable on conviction to a fine not exceeding Tsh5 million or to imprisonment for a term not exceeding three years, or to both.

Disputes arising from any decision of the authority will be dealt with by the Social Security Tribunal, which shall also have jurisdiction to determine appeals.

The tribunal shall be chaired by a judge of the High Court of Tanzania or a person who is qualified to be appointed to that capacity. Also in its membership shall be two people with experience in social security matters and one with experience in occupational safety and health, says the Act.

The chairman and members shall be appointed by the minister after consultation with the Chief Justice and they will hold office on a part-time basis, meeting when there is business to transact.

The authority may de-register a scheme, manager or custodian whose operations are being conducted in an unlawful manner or contrary to public interest, or even dissolve them.

But prior to such deregistrtaion, the authority shall give at least 30 days’ notice to the culprit to show cause why they should not be struck off.

The Act shall come into operation once the minister gazettes it, but it will apply only to mainland Tanzania. All schemes will then have 12 months to realign their functions, duties and responsibilities in conformity with the requirements of the Act.