IT’S UTTERLY INSENSITIVE TO DELAY RETIREES’ CASH

 

By The Citizen Reporter

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Yesterday we highlighted the woes of delays in pension payments to retired salaried employees.

Pensions are regular payments to a retirees using an investment or social security scheme’s funds to which the retirees and/or their employers contributed during the retirees’ working life.

And, retirees include persons who have completed a stipulated period of salaried employment, thereby becoming entitled to pension from an investment or social security scheme – or the Government in the case of public servants.

In Tanzania, contributory pension schemes are currently administered by two institutions, whose jurisdiction is limited to Mainland Tanzania. These are the National Social Security Fund and the Public Service Social Security Fund.

Both are mandated to collect contributions from their members – employers and employees – as well as prudently managing the collected funds (including responsibly investing same for fair returns) and, eventually, paying pensions and other terminal benefits to retirees.

Fair enough, we say. But, as we reported yesterday, delays in paying pensions as due and in full to salaried employees immediately after they retire puts the retirees between a rock and a hard place, financially speaking. That is especially considering that the little money which they could have saved or invested from their generally meagre salaries went instead to the pension schemes in question.

This was in the belief, trust and hope that the savings so contributed to the social security schemes would be paid to them in the form of a pension on the dot of their retirement.

Alas, this has not been happening, causing untold misery to retirees.

Payment delays, we are told, have multiple causes, including late contributions by employers to the pension schemes; unrepaid loans by large borrowers (including the government), and administrative gremlins.

We urge the government and the pension schemes to responsibly act together and end this drawback once and for all.

YES, LET’S EXPAND DIPLOMACY

Even as Tanzania is intent on exploiting the opportunities for socioeconomic development which can be generated through economic diplomacy, the East African Community has earnestly embarked on the near-dormant cultural diplomacy path – also with similar objectives. Briefly, “economic diplomacy” involves use of the full spectrum of economic tools of a country to achieve its national interests. These latter include – but are not limited to – policy decisions designed to influence exports, imports, investments, lending, aid and virtual free trade.

On the other hand, “cultural diplomacy” involves actions which are based on – and utilise – the exchange of ideas, values, traditions and other aspects of culture or identity. This is to strengthen relationships, enhance socio-cultural cooperation, promote national interests, etc.

Both forms of diplomacy can be conducted by operators in the public sector (including diplomatic envoys); the private sector and civil society organisations. We are most gratified to have reported yesterday that Tanzania – as an individual nation-state, and also as a member-state of the regional EAC economic bloc – is in the processes of bolstering both economic and cultural diplomatic measures designed to functionally drive forward the country’s agenda for all-inclusive, sustainable socioeconomic development.

Let us all put in more vim, verve and vigour to get it done.