According to the DG, the authority that was
formed two months ago would ensure schemes remain secure and
sustainable, members' interests are protected and coverage is increased.
It would also 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.
It would conduct public awareness for all stakeholders of social security before issuance of regulations and guidelines.
On the other hand, the authority will put in place capacity building
programmes and establish a research department with a robust database
and an in house actuary to facilitate development of social security
products.
Recently, the World Bank's Financial Sector Support Project (FSP)
prompted the Bank of Tanzania to invite consultants to bid for the
reviewing of the existing investment portfolio of the social security
schemes in the country.
The objective was to review the funds' investment markets, portfolios
and policies with a view to structuring sharp investment guidelines for
them.
Apparently, the new project seeks to control the hitherto unregulated
schemes. Allegations are high that some of the funds are investing in
unviable projects, lending to non-members and taking overly long to
issue members' benefits.
It is expected that the harmonization of the legal and regulatory framework will start during the first quarter of 2011.
The regulator will make sure the schemes remain secure and
sustainable, members interests are protected, there is increased
coverage and funds are invested according to rules or investment
guidelines.
It would ensure appropriate disclosure as schemes, managers and
custodians provide timely information.
Above all, it would guarantee
that shortfalls are identified and appropriate actions taken.
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