SSRA clarifies pensions law

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Thursday, 26 July 2012 22:44

By Frank Aman The Citizen Correspondent Dar es Salaam. The withdrawal of benefits from bodies of social security funds has not been scrapped, but suspended for six months, the Social Security Regulatory Authority (SSRA) has said. In a statement issued yesterday it said the benefit has been suspended pending the preparation of regulations which would fit with the new law passed in April this year. The SSRA was forced to issue the clarification following public outcry over information that the new law has outlawed withdrawal  of benefits. Many workers are against the move arguing that doing so would amount to dedicating on how their savings should be spent. However, the SSRA statement was not specific on the fate of benefits after completion of the regulations. According to the statement issued by the SSRA communication and awareness unit, restricting members of a social security fund to withdraw all contributions until retirement age aimed at insuring they live comfortably upon retirement. “It is true that laws on social security and the authority were revised. This process involved three key stakeholders: Workers unions, employers and the government,” read part of the statement. It further stated that knowing differences in employment, working environment, employment tenure and importance of members to enjoy social security benefits while employed, the authority is creating pension directives and regulations which aim at increasing members’ benefits. “These directives and regulations will be presented and discussed by the major parties including workers, employers and the government before starting to be used,” it said. The statement explained that following the introduction of the new Act, applications for membership withdrawal have been prohibited for six months until the SSRA provides education to stakeholders. It said the SSRA also dismissed the allegation about the pension commitment directive saying it was not caused by government excuses or social security funds going bankrupt. “The authority would like to inform members and stakeholders that all members’ funds are safe; so stakeholders should be patient as the process of strengthening the funds and membership benefits continues,” it assured members. Some employees in the private sector have reacted harshly to the new legislation that forbids members of any social security fund to withdraw their benefits before attaining the retirement age. The new legislation was passed by the Parliament in April this year. Under Tanzania’s labour laws, one is free to retire at 55, while it becomes mandatory to leave office upon attaining the age of 60. Some workers say the legislation is oppressive and they are quitting in protest, The Citizen has learnt. Reports from Mwanza said yesterday that over 600 from seven major gold mines in the Lake Zone have resigned. Other 4,000 have submitted resignation letters to their employers, disgusted by the newly imposed pensioners’ law, they said. Mine workers, most of them working on contract, have strongly opposed it claiming that it is too oppressive.