PPF records 39 pct benefit payments to pensioners

By The guardian reporter

PPF Director General, William Erio

The amount of benefits paid by PPF Pensions Fund to its pensioners and other beneficiaries has increased from 71.88bn/- recorded in 2011 to 99.4bn/- recorded late last year, an increase of 39.4 percent, the Management has said.

Speaking at the just ended 23rd PPF members and stakeholders conference in
Arusha, the Fund’s Director General, William Erio, attributed the rise of benefits to the increase in number of members.
He said membership recruitment and contribution collection are among the core activities undertaken by the Fund.

According to him, the Fund operates two schemes namely traditional pension scheme and deposit administration scheme.

He said in order to achieve its targets during the year 2012, the fund continued to undertake members’ and potential members’ education costs, issuing membership cards on registration and enhancing its marketing capacity for its zonal offices, with a view of recruiting more members.

Due to these efforts and strategies, the fund managed to recruit 58,889 new members during the year, he stated.

Erio said contribution income also increased from 187.5bn/- in 2011 to 226.5bn/- which is equal to 20.8 percent increase.

He said the increase was attributed to membership size, rise in salaries and improved compliance in remittance of members’ contribution by their members’ employers.

Explaining further, he said last year the money received from fixed income assets was 67.2bn/- from 45.5bn/-earned in 2011 which is equal to 47.6 percent increase.

Out of total income received, 60.4 percent arose from investments in treasury debt securities while the remaining 39.6 percent was made up of fixed bank deposits and loans.

He said income received from equity investment increased from 5.15bn/- in 2011 to 10.5bn/- in 2012 largely due to appreciation of share values.

As a result of operations, the accumulated size of the Fund increased by 22 percent from 894.5bn/- in December 2011 to 1,091.5bn/- last year which enabled it to have adequate liquidity to settle its current maturity obligation.

On corporate social responsibility, he said the Fund has continued to support the society in enhancing its value and image to the public.

Last year the Fund provided donations in areas of education, health and issues of national interests worth 229.34m/-
Commenting, the Chairman of Public Accounts Committee Zitto Kabwe, advised the Fund to invest in agro processing industry.

He said time has come for the pension funds to look into possibility of supporting farmers through investing in agro processing.

“I was looking at your financial report, 65 percent of assets are in banks, 26 percent in government treasury bills and 12 percent in companies, so it is advisable to consider putting money in agriculture which is the backbone of our economy,” he said.

Kabwe who is the Kigoma North legislator also urged the government to transform Azania bank or put housing window which would issue affordable house loans to the members. 

SOURCE: THE GUARDIAN