Play fair in membership drive, pension funds told

By Felix Andrew

  Scheme harmonisation now in advanced stage

Social Security Regulatory Authority (SSRA)

The Social Security Regulatory Authority (SSRA) has called on pension funds to play fair in membership recruitment drive, warning of stern measures against violations of the law.

Speaking to reporters in Dar es Salaam yesterday, Acting Director General of the pension agencies’ watchdog, Ansgar Mushi, said the authority has recently received complaints from new members of funds furnishing wrong information in order to damage the image of competitors.


He said the funds provide false information to would-be members or circulate fliers which are intended to damage their competitors.

Tanzania has six pension funds namely, PPF, Government Employees Pension Fund (GEPF), National Social Security Fund (NSSF), Local Authority Pensions Fund (LAPF), Public Service Pension Fund (PSPF) and National Health Insurance Fund (NHIF).
Other violations by the pension funds are to compel new workers to join their schemes, employers seducing their workers to join the scheme of their choice and the use of illegal means to recruit members.

“This is prohibited and against the Social Security Act No 8 of 2008 which requires all pension funds to recruit members according to the laid down guidelines.

“SSRA will take tough measures against any pension fund that will violate the law,” he said.

For his part, SSRA Legal Services Director Ngabo Ibrahim said the law empowers the agency to intervene or prosecute any pension fund that violates the stipulated rules and regulations.

A penalty of up to 10m/- could be levied on any fund which violates the law, he said.

Explaining further, he said, the programme to harmonise all pension schemes has reached an advanced stage.

“If approved, the harmonisation process will take place before 2015, where members would be able to move freely from one scheme to another with their benefits and rights.”

The authority’s head of Public Relations and Promotion, Sarah Msika said the state of pension funds was generally healthy.

“Recent statistics show that the fund’s management is good, meaning that the social security watchdog has done its homework well,” she said.
The SSRA must now ensure the fund’s growth translates into benefits for the pensioners, she added.

According to audited financial statements the six pension funds made a record overall return on assets of 6.4trn/- in the year ending June 2013, up from 5.6trn/- a year before.

The funds’ investment portfolio has been moving towards fixed income assets and smaller amounts in equities and properties.

Economists say this is attributed to limited investment options due to low level of development of the financial market.

Up to the moment Tanzania has just over 1.8 million people recruited into the six pension funds while the number of pensioners has increased from 72,000 in 2012 to 78,000 last year.

The challenge now is to ensure that members access some of the benefits while they are still working. 

SOURCE: THE GUARDIAN