Social Security Regulatory Authority (SSRA)
SSRA’s remarks have come a few days after Members of Parliament (MPs) called on the government to speed up harmonisation of the pension payment formulae.
On Tuesday MPs faulted the government for failure to harmonise the formula for calculating payment of pensions to members of its various social security schemes, saying the irregularities discourage membership to the schemes.
But speaking during an exclusive telephone interview with this paper yesterday, SSRA Head of Public Relations and Promotion, Sarah Kibonde assured the country that the harmonisation is in its last stages and that any time the schemes will have the formula on the table.
“The process has involved all three important stakeholders including Association of Tanzania Employers (ATE), The Trade Union Congress of Tanzania (TUCTA) and the Government…soon things will be ready,’’ she noted.
According to Kibonde the process has been going at a snail’s pace since it involved detailed discussions in each stage. She noted that things were to be done very carefully and efficiently in order to overcome quarrels during its presentation time.
Recently, debating the Government Employees Pension Fund’s (GEPF) Retirement Benefits Fund Act, 2013 tabled on Tuesday by Deputy Finance Minister Saada Mkuya Salum on behalf of the Finance Minister, Dr William Mgimwa, the Lawmakers said there was no reason for the government to fail to harmonise the formula.
“We cannot have sustainable economic development without strengthening our social security schemes,” said David Kafulila MP (Kigoma-South, (NCCR- Mageuzi).
The legislator added: “…of 45million people in the country, only 2.6 million people are registered members of either of the schemes.”
Further debating the matter, Peter Serukamba MP (Kigoma-Urban, CCM) supported the call to harmonise the formula saying the move is crucial if the beneficiaries are to understand the benefits.
In addition, Serukamba suggested that as the government shifts its Funds from Provident Funds to Pension Funds, the social security schemes should incorporate providence funds provisions so that people in the informal sector can join.
Tanzania has six major funds, Parastatal Pension Fund (PPF), GEPF, National Social Security Fund (NSSF), Local Authority Pensions Fund (LAPF) and Public Service Pension Fund (PSPF).
The biggest challenge facing the schemes includes the different formulas they use in computing their member’s benefits although the contribution rate is the same. They also lack indexation, a transferability mechanism and uniform investment guidelines.
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