NSSF launches scheme for Tanzanians in Diaspora

By Giza Mdoe

The National Social Security Fund (NSSF) Director General DR. Ramadhan Dau delivers a speech at a stakeholders meeting in Arusha. The fund offers numerous benefit packages and welcomes voluntary membership it is also open for Tanzanians in the Diaspora

 

Established by the Act of Parliament No. 28 of 1997 to replace the defunct National Provident Fund (NPF), the National Social Security Fund (NSSF) is a compulsory scheme providing a wider range of benefits which are based on internationally accepted standards.

 

The scheme is financed through matched contributions between employer and employee at the rate of 10 per cent of employees’ gross salary and the employer chips in an equal amount to make a total monthly contribution of 20 per cent of each employee’s gross salary.

 

That is the mandatory end of things, however given the numerous benefits the fund has to offer, increasingly more and more Tanzanians are joining the fund voluntarily.

 

Recently, NSSF launched a new scheme to cover Tanzanians living abroad, the Welfare Scheme for Tanzanians in Diaspora (WESTADI) that was inaugurated by President Jakaya Mrisho Kikwete in Maryland, USA during celebrations to mark the 50th anniversary of Tanzania’s Independence this year. 

 

In an interview with The Guardian, NSSF Operations Officer Fathiyah Shariff describes the basics of the fund, how one becomes a member and the benefits of joining as well as the scope and terms of coverage.

 

Question: How does one become a member?

Answer: For one to become a member he/she has to be registered by the fund. Section 11 (6) of NSSF ACT No 28 of 1997 provides for the mandatory membership of all employed persons.

 

Under the Act, an employer will match their employees’ monthly contribution of 10% of their gross salaries.

 

But we also welcome and encourage voluntary membership...as more people become aware of the benefits of saving for retirement or emergencies, we are seeing increasingly more Tanzanians at home and abroad joining the fund.

 

To become a member, one simply fills out the yellow cards, NSSF Form NSSF R.3A and then physically submits at any of many field offices across the country for verification of biometrics and ID photo.

 

It’s a very short and simple process but life changing because it ensures that you and your family are covered.

 

Q: What are the benefits of becoming a member?

A: The scheme provides several benefits to its members including.

First is the retirement or old age pension. This is paid through regular monthly payments paid to elderly members guaranteeing their income security upon retirement. 

 

Second is the invalidity pension that is paid to an insured person who has lost at least 2/3 of his/her earning capacity due to physical or mental inability as certified by the medical board.

 

This is followed by the survivors pension paid to a spouse and/ children of the deceased insured person under 18 or 21 yrs.

 

 If the deceased had no surviving spouse and/or children, the pension shall be paid to parents and if all are not around a family member will be paid in accordance with the inheritance Law of Tanzania.

 

We also offer a funeral grant payable as reimbursement to a family member who incurred burial expenses for a deceased NSSF insured person.

 

Our maternity benefit is payable to insured female members of the Fund who are expecting confinement.

The we have an employment injury benefit paid to an insured member who sustains injury or contracts occupational disease as a result of his/her employment and finally we have the Health insurance benefit  which is a short term benefit that aims at providing medical support to the insured and his/her dependants (spouse and children)

 

Q: What is the retirement age and can a member withdraw before retirement?

A: Compulsory pensionable age of a member is 60yrs and 55-59yrs is for early retirement.

In the event that a member loses their employment then the member is allowed to withdraw his contributions before retirement. 

 

Q: What does NSSF do with the money it collects?

A: NSSF invests the member contribution allowing it to pay interest on to the members and to cover its own operational.

 

The fund Investment Policy is to guide the Board of Trustees in its investment decision making process. 

 

The policy aims at maximizing income from various the various investments of the Fund, protecting them, safeguarding and promoting the interests of the fund members of  by directing investments into safe, high yielding investments and to also avert, prevent and minimise any potential  losses.

 

It also seeks to obtain an optimum rate of return consistent with the safety and liquidity criteria of the policy. 

 

Q: Does a member’s contribution earn interest?

  A:  Yes, NSSF does pay interest to its members.

 

All in all, activities of the fund aim at improving social and economic welfare of the members and the nation as a whole.

 

SOURCE: THE GUARDIAN