TRADE Union Congress of Tanzania (TUCTA) yesterday applauded the enactment of Public Service Social Security Fund Act to merge the various pension funds into two schemes.
The trade union apex body welcomed the move, saying the merger will lead to lucrative packages for pensioners.
Through the new legislation that the
National Assembly enacted and President John Magufuli assented to, the
country now has two social security funds, the Public Service Social
Security Fund (PSSSF) and the National Social Security Fund (NSSF) for
public and private sectors, respectively. Prior to the legislation,
there were five pension funds with almost similar benefits.
They included NSSF, PPF Pension Fund,
Public Service Pension Fund, Local Authorities Pension Fund and
Government Employees Provident Fund (GEPF).
Speaking at the climax of the
International Labour Day at Samora Stadium in Iringa yesterday, TUCTA
Secretary General, Dr Yahaya Msigwa, appreciated the amalgamation,
describing it as critical in reducing operational costs of the funds.
“There were some people who thought the
schemes’ blending politically motivated but the truth is we (TUCTA) were
behind the campaign to merge the social schemes for the past six
years,” he stated, asking the government to consider reducing Pay As You
Earn (PAYE) tax and setting the minimum wage for employees in the
public and private sectors at 750,000/-.
Speaker of the National Assembly, Mr Job
Ndugai, commended Dr Magufuli for signing the Bill into law. “The
National Assembly will review all legislations perceived to be
detrimental to workers ... it’s our hope that workers will continually
work hard for improved productivity,” Mr Ndugai said in his brief speech
at the well attended event.
Dr Msigwa challenged the Social Security
Regulatory Authority (SSRA) and the two pension funds to conduct public
awareness campaigns to enlighten workers on the merger benefits.
“There are some workers out there scared
of the new arrangement, thinking it will deny them of their obligatory
pensions, there is need to educate them,” Dr Msigwa observed. He pointed
out that the industrialisation drive and execution of the government
championed development projects will play a crucial role in creating new
jobs for Tanzanians.
Prime Minister Kassim Majaliwa, in his
greetings to the workers, praised public and private sectors’ employees
for their hard work. “In my capacity as chief executive of government
affairs I have visited many public and private institutions and
witnessed how people are working hard to achieve the middle income
economy by 2025,” testified the premier.
The Minister of State in Prime
Minister’s Office (Policy, Parliamentary Affairs, Labour, Employment,
Youth and Disabled), Ms Jenista Mhagama, pledged maximum cooperation
between the government and trade unions in the country.
“We have been conducting dialogue on
various issues for workers, including merging the social security
schemes, which the trade unions had proposed ... Tanzania is among few
countries that have successfully unified the schemes,” she explained.
Foreign Affairs and East African
Cooperation Minister, Dr Augustine Mahiga, commended President Magufuli
for spearheading various development projects in Iringa, with the aim of
transforming the region into a tourist hub in the Southern Highlands.
He cited upgrading of Iringa Airport,
envisaged construction of a tarmac road from Iringa to Ruaha National
Park as well as completion of paved road from Iringa to the designated
capital, Dodoma, as major projects seeking to unlock trade and
investment opportunities in the region.
From Dodoma, the Regional Commissioner
(RC), Dr Binilith Mahenge, has reportedly ordered trade unions in the
region to report to his office employers violating workers’ rights.
Addressing workers at the International
Labour Day, Dr Mahenge said employers not complying to the National
Social Security Fund Act that provides for contributions to pension
funds be reported for appropriate action.
“I want reports on employers violating
workers’ rights in my area,” ordered the RC at Jamhuri Stadium where
workers celebrated their day.
Themed, “We support the government’s
decision to merge pension funds,” this year’s Labour Day was aimed at
reminding employers to comply with the National Social Security Fund
Act.
Regarding the promotion of Dodoma into a
city, the RC said plans were underway to survey over 100,000 new plots,
adding that the sale of 18,000 plots that started recently was on
progress.
“The objective is to ensure that every
Dodoma resident gets an opportunity to own the plot,” he said, appealing
to investors to invest in real estate in the new city to capitalise on
the growing demand for residential houses amid government’s move to
relocate to the central city.
Dr Mahenge ordered public and private
institutions to embark on tree planting campaign in support of
Vice-President Samia Suluhu Hassan launched campaign to keep Dodoma
green. Earlier, TUCTA Executive Committee Member Sosteness Ndishi raised
concern over the merging of pension funds, saying workers were worried
over their benefits.
“Workers are worried over calculation of
their benefits in pension funds after the government merged the social
security funds,” he said, appreciating the government’s resolve to clear
workers’ arrears.
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