Local Authorities Pensions Funds (LAPF)
Onesmo
Kalumanzira, (80), lives in a home for the elderly at Duga – in the
peripheral of the Tanga City – approximately four kilometres from the
centre of the city – along the Tanga – Pangani road.
His entire life depends on government care which he receives as a destitute at the centre – a facility under the Ministry of Health and Social Welfare (MoHSW).
Kalumanzira, a single adult, was admitted to the unit over 20 years ago, apparently after life became unmanageable for him at his old place of domicile.
For about three decades, the elder had been an employee at several sisal plantations in Tanga region - mainly working as a sisal cutter.
But then, in course of time, a day came when his last employer introduced an unfortunate idea that what his employee had done with the firm was enough and he was now terminating his services.
Having been paid his dues, he rented a room at Amboni – a location on the Tanga – Horohoro highway and stayed there for a steady 20 years before he found life unbearable, hence moving to the home.
Kalumanzira was unlucky that during his time he was an employee, there were no social security funds like is the case today.
Tanzania boasts of a half dozen or so social security institutions – all of them taking care of its members’ welfare – both socially and economically, during and after working life.
One of them is the renowned Local Authorities Pensions Fund (LAPF) – an institution which was established by Act of Parliament in 2006.
Initially, LAPF catered for employees of local government, Loans Board and the Fund itself. However, shortly after, in 2008, it spread its wings to other areas – both in the public and private sector.
Although primarily, the funds’ focus may look the same outwardly, each strives to provide better services to its clients.
For example, LAPF, apart from its traditional roles, it has come up with several benefit packages which are unique to the rest – a move which has captured the attention of potential beneficiaries.
Such packages include the Maternity Benefit. Under the package, a woman member of LAPF who has contributed to the fund for a continuous period of 24 months is granted 129 per cent of her basic salary when she delivers a life birth.
“Immediately such woman member delivers, she qualifies for the grant which is non deductable from either her salary or terminal benefits,” says Simboninsia Ndosi, LAPF Benefit Officer. In other words, the payment is a free offer.
She told The Guardian in an exclusive at the on-going Association of Local Authorities (ALAT) Week Exhibition at the weekend that the benefit which only LAPF had monopoly so far, was aimed at restoring energy which was lost from pregnancy to delivery.
“When a woman delivers, naturally she becomes rather weak. The gesture we make is to restore her energy and facilitate her financially so she can meet the various costs involved”, said Ndosi.
“Under normal circumstances, such a woman goes back to work after expiry of maternity leave. We do not want her to come back in weak condition because a weak worker cannot be expected to be productive”, she said, adding that such benefit was part of the fund’s social responsibility.
In the words of Ndossi, such beneficiary may access to the privilege after expiry of three years.
Another equally vital benefit is House Loan which is paid to a member on attainment of age 55 years.“House Loan is extended to a member to enable him or her build or buy a house, at least five years prior to retirement,” says Ndossi, adding that such loan is paid at half the expected approximate lump sum on retirement.
“Our style is different. We do not pay beneficiaries through financial institutions because doing so would elevate cost of interest from our 7 per cent which we consider the most affordable”.
She said giving a member a house loan, enables a particular beneficiary to build a house at a convenient place of his or her choice.
Like some other funds, says Ndossi, LAPF is faced with a few challenges caused by unscrupulous employees in some institutions or companies who entice recruits to their employment to join funds against their (recruits) choice.
“The 2008 directive, issued by the Social Security Regulatory Authority (SSRA) clearly stipulate that under no circumstance should an employer force a new worker into an employment, to join a fund against their choice”.
The LAPF’s official discontent is echoed by Anna Stefano, a teacher from the city’s suburb, who said when she was employed, five years ago, she was not told under which fund she was registered.
“I must confess that I did not know much about the way the funds operate. I only noticed it after I discovered that my salary had been deducted to be remitted to a certain fund”, said Anna.
Indeed, much needs to be done by the funds in as much as awareness on the operations of the funds is concerned.
But LAPF officials say that it is their tradition to disseminate education to the masses – at work places, schools and colleges etc. whenever the fund introduces new packages.
“Every year, we hold stakeholders meetings to keep abreast members of what is going on in LAPF”, asserted Ndossi.
Pavilion head, Rajabu Kinande said LAPF would soon launch a comprehensive package which will see employees in various sectors who wish to pursue further studies receiving tuition loans at any university or college accredited by Tanzania Commission of Universities (TCU).
Under the arrangement, the first of its kind within the funds circles, to be launched during the 2014/15 financial year, any member who has contributed to the fund for a continuous period of 24 months, qualifies for the loan, according to Kinande.
He says,”LAPF shall provide for a member wishing to be considered for the loan to take a soft loan of up to a maximum of 75 per cent of his total contributions,”
Repayment, says Kinande, is negotiable. Some may wish to repay monthly while others may choose to settle the whole debt after completion of course.
He said final modalities in this respect shall be issued after launching of the benefit. Kinande said the new benefit was aimed at enhancing educational status of its members.
“Evidently, many workers would wish to advance themselves through further studies but cannot do so due to financial problems”,
“We believe that on completion of respective courses, our members’ income status will go up, hence improvement in standards”, explained Kinande.
His entire life depends on government care which he receives as a destitute at the centre – a facility under the Ministry of Health and Social Welfare (MoHSW).
Kalumanzira, a single adult, was admitted to the unit over 20 years ago, apparently after life became unmanageable for him at his old place of domicile.
For about three decades, the elder had been an employee at several sisal plantations in Tanga region - mainly working as a sisal cutter.
But then, in course of time, a day came when his last employer introduced an unfortunate idea that what his employee had done with the firm was enough and he was now terminating his services.
Having been paid his dues, he rented a room at Amboni – a location on the Tanga – Horohoro highway and stayed there for a steady 20 years before he found life unbearable, hence moving to the home.
Kalumanzira was unlucky that during his time he was an employee, there were no social security funds like is the case today.
Tanzania boasts of a half dozen or so social security institutions – all of them taking care of its members’ welfare – both socially and economically, during and after working life.
One of them is the renowned Local Authorities Pensions Fund (LAPF) – an institution which was established by Act of Parliament in 2006.
Initially, LAPF catered for employees of local government, Loans Board and the Fund itself. However, shortly after, in 2008, it spread its wings to other areas – both in the public and private sector.
Although primarily, the funds’ focus may look the same outwardly, each strives to provide better services to its clients.
For example, LAPF, apart from its traditional roles, it has come up with several benefit packages which are unique to the rest – a move which has captured the attention of potential beneficiaries.
Such packages include the Maternity Benefit. Under the package, a woman member of LAPF who has contributed to the fund for a continuous period of 24 months is granted 129 per cent of her basic salary when she delivers a life birth.
“Immediately such woman member delivers, she qualifies for the grant which is non deductable from either her salary or terminal benefits,” says Simboninsia Ndosi, LAPF Benefit Officer. In other words, the payment is a free offer.
She told The Guardian in an exclusive at the on-going Association of Local Authorities (ALAT) Week Exhibition at the weekend that the benefit which only LAPF had monopoly so far, was aimed at restoring energy which was lost from pregnancy to delivery.
“When a woman delivers, naturally she becomes rather weak. The gesture we make is to restore her energy and facilitate her financially so she can meet the various costs involved”, said Ndosi.
“Under normal circumstances, such a woman goes back to work after expiry of maternity leave. We do not want her to come back in weak condition because a weak worker cannot be expected to be productive”, she said, adding that such benefit was part of the fund’s social responsibility.
In the words of Ndossi, such beneficiary may access to the privilege after expiry of three years.
Another equally vital benefit is House Loan which is paid to a member on attainment of age 55 years.“House Loan is extended to a member to enable him or her build or buy a house, at least five years prior to retirement,” says Ndossi, adding that such loan is paid at half the expected approximate lump sum on retirement.
“Our style is different. We do not pay beneficiaries through financial institutions because doing so would elevate cost of interest from our 7 per cent which we consider the most affordable”.
She said giving a member a house loan, enables a particular beneficiary to build a house at a convenient place of his or her choice.
Like some other funds, says Ndossi, LAPF is faced with a few challenges caused by unscrupulous employees in some institutions or companies who entice recruits to their employment to join funds against their (recruits) choice.
“The 2008 directive, issued by the Social Security Regulatory Authority (SSRA) clearly stipulate that under no circumstance should an employer force a new worker into an employment, to join a fund against their choice”.
The LAPF’s official discontent is echoed by Anna Stefano, a teacher from the city’s suburb, who said when she was employed, five years ago, she was not told under which fund she was registered.
“I must confess that I did not know much about the way the funds operate. I only noticed it after I discovered that my salary had been deducted to be remitted to a certain fund”, said Anna.
Indeed, much needs to be done by the funds in as much as awareness on the operations of the funds is concerned.
But LAPF officials say that it is their tradition to disseminate education to the masses – at work places, schools and colleges etc. whenever the fund introduces new packages.
“Every year, we hold stakeholders meetings to keep abreast members of what is going on in LAPF”, asserted Ndossi.
Pavilion head, Rajabu Kinande said LAPF would soon launch a comprehensive package which will see employees in various sectors who wish to pursue further studies receiving tuition loans at any university or college accredited by Tanzania Commission of Universities (TCU).
Under the arrangement, the first of its kind within the funds circles, to be launched during the 2014/15 financial year, any member who has contributed to the fund for a continuous period of 24 months, qualifies for the loan, according to Kinande.
He says,”LAPF shall provide for a member wishing to be considered for the loan to take a soft loan of up to a maximum of 75 per cent of his total contributions,”
Repayment, says Kinande, is negotiable. Some may wish to repay monthly while others may choose to settle the whole debt after completion of course.
He said final modalities in this respect shall be issued after launching of the benefit. Kinande said the new benefit was aimed at enhancing educational status of its members.
“Evidently, many workers would wish to advance themselves through further studies but cannot do so due to financial problems”,
“We believe that on completion of respective courses, our members’ income status will go up, hence improvement in standards”, explained Kinande.
SOURCE:
THE GUARDIAN
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