Government backs down in withdrawal benefits row

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Wednesday, 31 October 2012 23:20

By Florence Mugarula The Citizen Reporter Dodoma. The government plans to seek views on how to go about the withdrawal of benefits from pension and social security funds upon termination of employment. The minister for Labour and Employment, Ms Gaudensia Kabaka, told the parliament yesterday that after the consultations the Parastatal Organisation Pensions Scheme Act would be amended to accommodate the views. Early this year the government amended the Act so as to prevent withdrawal of benefits by members of pension funds before they reach the age of 55. But the public uproar that followed obliged the Ministry of Labour and Employment to form a taskforce on the issue which submitted its recommendations recently. The government had then planned to move an amendment on the Act in the ongoing parliamentary meeting to allow withdraw of benefits for workers below the age of 55. But yesterday Ms Kabaka said the amendment will be withheld pending the consultations.  She said the government has decided to withdraw the amendment so that it can get enough time to collect views and opinions from the public as well as stakeholders before making any changes. She said the government would discuss with MPs, workers’ associations, employees, employers, and the public at large. According to her, the exercise would include provision of education to the public on the withdrawal benefit as well as contents of Mr Jafo’s arguments. These had convinced the government and parliament not to proceed with the process of tabling the bill. “The government has read and understood  the argument as well as the report presented by the task force. It is obvious that there are very crucial issues which need to be analysed and discussed before proceeding with making any amendment to the bill,” said Ms Kabaka. She added that the parliamentary Steering Committee, Social Development Committee and the parliamentary Committee for Finance and Economic Affairs had played a big role in advising the government before reaching at the decision.