Tanzania: Stakeholders to Discuss Social Security Plan

1 November 2012

Dodoma — THE government intends to bring back to the Parliament the Social Security Laws Act Number 5 of 2012 for amendment, after a thorough consultation with stakeholders.

The Minister for Labour and Employment, Ms Gaudensia Kabaka told the National Assembly that the decision has been made, taking into consideration the resolution made by the National Assembly three months ago.

"Following the concern raised by Kisarawe MP Mr Seleman Jafo (CCM) and the House's resolution on the importance of reinstating withdrawal benefits, we (the ministry) formed a task force which has advised us accordingly and we would like to ask the National Assembly to give us some time to prepare a bill for amendment of the law," she said.

The Minister added that in the recommendations made by the task force, there are issues which go beyond the reinstating of the withdrawal benefits that asks the government to come up with the proposals that will see members of social security funds get more benefits and protection.

Ms Kabaka noted that the government has already ordered the Social Security Regulatory Authority (SSRA) to withdraw its public notice directed to social security funds." The government sees that it is important to remove from the law the section that denies members right to withdrawal benefits as we continue to consult stakeholders on other areas that needs to be improved before we bring the law for amendment," she said.

On Tuesday the SSRA issued a statement on its move to withdraw its notice amidst public outcry across the country that such notice was impractical, unrealistic and denial of workers' rights. The contested legislation drew ire in the National Assembly during the last session of the House, as MPs called for amendment of a section that bars Withdrawal Benefit.

Ubungo MP Mr John Mnyika (Chadema) had also expressed the intention to move a private motion in the amendment of that law. Mr Mnyika had also challenged the SSRA to withdraw a public notice it had placed in a number of media outlets, announcing to suspend withdrawal benefits for six months.

The Tuesday's statement means that members of social security funds across the country can opt to withdraw their benefits before the voluntary or compulsory retirement age at 55 and 60 years respectively, as required by the legislation which was amended in April, this year. The amended legislation had provided that no member of the pension fund could withdraw his/her benefits for any reason before the retirement age.

Before the public notice in August that followed amendments of the legislation in April, this year, members of pension funds who had through various reasons had their employment contracts expire before the retirement age were able to withdraw their benefits after six months since they ceased working.

Timetable for the current sitting of the august House issued by the Bunge office here on Tuesday shows that new amendments of The Social Security Laws (Amendments) Act number 5 of 2012 are likely to be under The Written Laws Miscellaneous Amendments, number 3, Act of 2012.