New PSSSF springs to life

NELLY MTEMA in Dodoma

. . . govt warns against delays in disbursement of workers’ benefits

THE newly formed Public Service Social Security Fund (PSSSF) under the Public Service Social Security Act (2018) becomes operational today, with the government warning that any delays in reimbursement of workers’ benefits will not be tolerated.

Addressing reporters here yesterday, the Minister of State in the Prime Minister’s Office Policy, Parliamentary Affairs, Labour, Youth, Employment and Disabled, Ms Jenista Mhagama, said all public servants are now members of one social scheme.

Moreover, she directed close monitoring and supervision of merged funds assets and investment to generate profit that will cater for members’ terminal and monthly benefits payment on time.

She assured public servants who were being served by the members of the five social security funds namely, National Social Security Fund (NSSF), PPF Pension Fund, Public Service Pension Fund (PSPF), Local Authorities Pension Fund (LAPF) and Government Employees Provident Fund (GEPF) will now merged into one scheme

However, she said, following the development, the law further directs the transfer of workers in the private sector, informal sector as well as voluntary contributors to the National Social Security Fund (NSSF).

“Let me assure the public that the government has completed all the processes for the law to be operational, thus all public servants will now be under one fund and all members’ savings and benefits are well taken care of,” she said.

She added that retirees in the merged schemes will also be transferred to PSSSF and all the resources that belonged to the defunct funds, will be directed to the new social security fund.

“The government made all necessary preparations for smooth transition to ensure that all is well taken care of and the members’ savings are in good hands,” she insisted.

She outlined some of the preparations as bringing all the members and retirees together; having in place the required information and technology system for the registration of new members in accordance to the law.

“We have prepared a new data base of members and contributions and completed working on financial records of all members, whereas at present, we are working on various regulations of the law in an effort to complete the whole process,” she added.

The Minister said they are also done with the verification of all assets that belonged to the four funds including bank accounts, investments, debts, income and members’ contributions, among others.

She also added that the Bank of Tanzania (BoT) has been entrusted with the custody of a number of documents like title deeds, contract of tenants and share certificates that belonged to the merged funds.

“The above-mentioned documents will be handed over to the management of PSSSF,” said the Minister, adding that it is government’s wish to see a vibrant fund serving public servants.

Ms Mhagama said according to the Act No 2 of 2018, as well as No 8 section 10(1) and 1(i), the PSSSF’s board of directors constitutes the chairperson who is appointed by the President, two members representing employees with majority employers in the fund.

Others are two members representing employers association with majority members in PSSSF, a representative of the Ministry of Finance and Planning and one representing the parent ministry.

The rest include representative of the attorney general’s office, a representative of the private sector as well as from Office of the President, Regional Authority and Local Government. She named members of the board as Leah Ulaya and Rashid Mohamed Mtima representing employers association with majority members, Aggrey Mlimuka and Stella Katende, representing employers with majority representatives.

As for the merged funds employees, she said, they have been relocated to the two funds, whereas their duties alignment and positions will depend on the funds’ schemes of service.

NSSF Director General, Mr William Erio said they are prepared to offer the best service to its members including disbursement of terminal and monthly benefits on time, according to the new law.

The Chief Executive Officer, Eliud Sanga said they will address all changes that irked members including delaying in disbursements of terminal benefits and he will make close and profitable supervision of the investment projects and assets.