Sunday, 02 January 2011 21:36
By Polycarp Machira
The Citizen Reporter
Dar es Salaam. Tanzania has potential opportunities that remain uncovered by the social security schemes and which call for the government’s intervention to increase coverage.
The establishment of the Social Security Regulatory Authority (SSRA) in effect is expected to play an important role in regulating and supervising the provision of social security services in the country.
It has been created under the Social Security Regulatory Authority Act, 2008 which President Jakaya Kikwete assented to in June last year, and became operational in September this year.
The newly-enacted law will now help supervise and regulate the functions of all social security schemes in the country. The authority has the role of ensuring the funds are sustainable, project interests increase coverage and reduce the burden to the government.
Tanzania trails Kenya and Uganda in security scheme coverage. Only 6.5 per cent of Tanzania’s working population and 3.5 per cent of the entire population are covered by the social security schemes.
At least eight per cent of the Kenyan population is covered by the schemes, compared to 11 per cent of the Ugandan population which is covered by the social security schemes.
The SSRA director general, Ms Irene Isaka, told reporters in Dar es Salaam this week that the authority would facilitate the extension of social security coverage to non-covered areas, including informal groups, and conduct awareness, sensitization and tracing on social security.
“We look forward to increasing coverage to farmers, pastoralists and other rural-based populations that seem to have been neglected by the funds. The issue here is to create awareness so that such groups of people may see the importance of being included in the security funds” said Ms Isaka.
She said the authority has established a taskforce that draws its members from the Attorney General’s chamber, the ministry of Finance, the Bank of Tanzania, experts on Social Security from the International Labour Organization (ILO) and the ministry of Labour, Employment and Youth Development to address key challenges ahead.
Some of the key challenges facing the social security sector include fragmented legal and regulatory framework where different schemes report to different ministries.
“Most funds just provide traditional benefits without flexibility to cover variety of pensioners’ needs” she said.
Every pension, according to the authority has its own investment policy, some of which are not favourable to pensioners. There are seven pension funds under different ministries, with different rules and regulations, but have limited coverage.
At least three schemes - Parastatal Pension Fund (PPF), Public Service Pension Fund (PSPF) and Government Employees Pension Fund (GEPF) - report to the ministry of Finance.
The National Social Security Fund (NSSF) reports to the ministry of Labour, Employment and Youth Development while the Local Authorities Pensions Fund (LAPF) reports to the Prime Minister’s Office (Regional Administration).
The National Hospital Insurance Fund (NHIF) reports to the ministry of Health and Social Welfare.
To achieve the desired goals, the regulatory authority plans to conduct actuarial valuation of all social security schemes in the country by the first quarter of next year in an effort to solve problems facing the sector. The valuation, among other things, will determine the lifespan of the security schemes as some may not live to benefit pensioners at the retirement age.
A well-designed social security scheme, according to Ms Isaka, should be broad-based with adequate coverage and be sustainable for over 70 years. The valuation will also help determine regulations for transferability of membership from one scheme to the other.
As at now, the rules and regulations of the social security funds make it difficult for workers to transfer their benefits to another fund in case the worker changes his job. It has also been noted that the pensions have different pension factors, although all have the same contribution rate of 20 per cent, they have different benefit packages, a factor which is to be reviewed too.
She said there is a need to improve the sector so as to increase national pension coverage, adding that the institution would, among other things, be responsible for advising the government on how to extend the social security coverage into other sectors, including the informal sector.
Data shows that 10.5 per cent of the population comprises paid employees, 1.8 per cent are self-employed with employees, while 9.1 per cent are self-employed without employees.
According to the DG, the authority that was formed two months ago would ensure schemes remain secure and sustainable, members’ interests are protected and coverage is increased.
It would also ensure that funds are invested according to rules or investment guidelines as the government looks at the possibility of widening coverage of social security services in the country, to include people who are self-employed in the informal sector.
It would conduct public awareness for all stakeholders of social security before issuance of regulations and guidelines.
On the other hand, the authority will put in place capacity building programmes and establish a research department with a robust database and an in house actuary to facilitate development of social security products.
Recently, the World Bank’s Financial Sector Support Project (FSP) prompted the Bank of Tanzania to invite consultants to bid for the reviewing of the existing investment portfolio of the social security schemes in the country.
The objective was to review the funds’ investment markets, portfolios and policies with a view to structuring sharp investment guidelines for them.
Apparently, the new project seeks to control the hitherto unregulated schemes. Allegations are high that some of the funds are investing in unviable projects, lending to non-members and taking overly long to issue members’ benefits.
It is expected that the harmonization of the legal and regulatory framework will start during the first quarter of 2011.
The regulator will make sure the schemes remain secure and sustainable, members interests are protected, there is increased coverage and funds are invested according to rules or investment guidelines.
It would ensure appropriate disclosure as schemes, managers and custodians provide timely information. Above all, it would guarantee that shortfalls are identified and appropriate actions taken.
.
Pages
Zanzibar Social Security Fund
Nssf_New
Friday, July 8, 2011
Monday, July 4, 2011
NSSF members` access to accounts automated
NSSF members` access to accounts automated
By Stella Barozi
4th July 2011
National Social Security Fund members will by the end of this year have started accessing information on their accounts electronically.
This is thanks to the Fund’s identification management system, introduced to the public during last year’s Dar es Salaam International Trade Fair and now become fully operational.
The development is expected to spare members the problem of spending time queuing for long hours at NSSF offices for a service they will now get in minutes.
Winston Mundigile, Principal Systems Officer (Networking) with the Fund, said at the Dar es Salaam International Trade Fair yesterday that the machines to be used have taken long to get into business because not all NSSF members have smart cards to be used in the “info-kiosks”.
“Smart cards are a must for members to access their information in the kiosks, to be installed at all NSSF offices soon,” he said.
He described “info-kiosk” (information kiosks) as self-service terminals placed strategically in high profile public areas, where it provides easy access to information and remote services for many hours.
“When we introduced the technology, we realised that members’ enrolment to get smart cards was far below our expectations and so we had to invest more efforts in enrolling more members,” explained Mundigile.
It was about three years ago that NSSF embarked on a countrywide exercise to replace old membership cards with the current electronic ones.
To ensure that all members have smart cards, the fund has been visiting its members at their respective workplaces and NSSF Director of Information Technology Said Masimango said 70 per cent of their 516,000 members already have smart cards.
“We want to change our service provision trend by taking our services to customers wherever they are rather than having customers seeking services at NSSF offices,” he noted.
The info-kiosks, which will use the biometric system (Automated Finger Print Identification System), will be placed at NSSF’s 23 regional offices, 14 district offices and 11 sub-district offices countrywide.
Masimango said the system will provide members with easy access to information like statements, employers’ remittances of employees’ contributions to the Fund and general information about the Fund without involving NSSF workers.
He added that the biggest advantage was that employees whose contributions were not remitted to the Fund would be able to make follow-ups with their employers before it got too late.
He confirmed that some employers deduct money from their employees’ salaries for NSSF contributions but don’t take the money to NSSF.
He said the information will be both in English and Swahili and one will be able to get a hard copy of their information if they wish as printing is possible.
Masimango explained further that they are busy working on translations as the machines are meant to operate in English language, adding that the machines will be deployed at mining companies first on a pilot basis.
The new technology, already in use in more than 11 countries in this part of Africa, is widely expected to cut the incidence of inefficiency (mainly the perpetually “missing files”), corruption and mismanagement commonly affecting national social security funds.
SOURCE: THE GUARDIAN
By Stella Barozi
4th July 2011
National Social Security Fund members will by the end of this year have started accessing information on their accounts electronically.
This is thanks to the Fund’s identification management system, introduced to the public during last year’s Dar es Salaam International Trade Fair and now become fully operational.
The development is expected to spare members the problem of spending time queuing for long hours at NSSF offices for a service they will now get in minutes.
Winston Mundigile, Principal Systems Officer (Networking) with the Fund, said at the Dar es Salaam International Trade Fair yesterday that the machines to be used have taken long to get into business because not all NSSF members have smart cards to be used in the “info-kiosks”.
“Smart cards are a must for members to access their information in the kiosks, to be installed at all NSSF offices soon,” he said.
He described “info-kiosk” (information kiosks) as self-service terminals placed strategically in high profile public areas, where it provides easy access to information and remote services for many hours.
“When we introduced the technology, we realised that members’ enrolment to get smart cards was far below our expectations and so we had to invest more efforts in enrolling more members,” explained Mundigile.
It was about three years ago that NSSF embarked on a countrywide exercise to replace old membership cards with the current electronic ones.
To ensure that all members have smart cards, the fund has been visiting its members at their respective workplaces and NSSF Director of Information Technology Said Masimango said 70 per cent of their 516,000 members already have smart cards.
“We want to change our service provision trend by taking our services to customers wherever they are rather than having customers seeking services at NSSF offices,” he noted.
The info-kiosks, which will use the biometric system (Automated Finger Print Identification System), will be placed at NSSF’s 23 regional offices, 14 district offices and 11 sub-district offices countrywide.
Masimango said the system will provide members with easy access to information like statements, employers’ remittances of employees’ contributions to the Fund and general information about the Fund without involving NSSF workers.
He added that the biggest advantage was that employees whose contributions were not remitted to the Fund would be able to make follow-ups with their employers before it got too late.
He confirmed that some employers deduct money from their employees’ salaries for NSSF contributions but don’t take the money to NSSF.
He said the information will be both in English and Swahili and one will be able to get a hard copy of their information if they wish as printing is possible.
Masimango explained further that they are busy working on translations as the machines are meant to operate in English language, adding that the machines will be deployed at mining companies first on a pilot basis.
The new technology, already in use in more than 11 countries in this part of Africa, is widely expected to cut the incidence of inefficiency (mainly the perpetually “missing files”), corruption and mismanagement commonly affecting national social security funds.
SOURCE: THE GUARDIAN
Social security net must be widened
By Editor
24th June 2011
Editorial Cartoon
While all international conventions recognise social security is a universal need and a basic human right, only one in five people in the world has adequate social security. And according to the International Labour Organisation (ILO), half of the world’s population is without any social security protection.
Tanzania too is in the same precarious situation as according to the Social Security Regulatory Authority (SSRA) Director General, Irene Isaka, only 3.5 per cent of over 40 million Tanzanians are currently registered with social security funds.
The DG told this newspaper in an exclusive interview that the percentage was not healthy for many Tanzanians because when they get older they would not be able to receive any security protection.
It is for this reason we view as a timely and positive move the plan by SSRA to increase the number of Tanzanians enjoying social security to 5 per cent by 2014 in the coming three years.
We specifically laud the move in the envisaged plan to increase social security coverage to farmers, pastoralists and other rural based populations so far neglected by the funds.
However, we believe time is ripe to gun for wider coverage – beyond the planned 5 per cent – if social security funds could target the country’s ever-growing informal sector which is billed to be the second biggest employer after agriculture.
Without an expanding industrial base, the majority of Tanzanians will for a long time to come continue to depend on agriculture and the informal sector for their livelihoods. And they need social security protection.
We strongly believe that this can be achieved if there is the political will as this may entail changes to the existing laws that established the various social security funds to develop new statutory schemes by extending existing or modified benefits to previously excluded groups.
We wish to urge the government to fully support the SSRA in its resolve as we believe Tanzania has potential opportunities that remain uncovered by the social security schemes if a well-designed social security scheme – which should essentially be sustainable and broad-based with adequate coverage – is put in place.
At the same time, we wish to appeal to social security funds to assist their members prepare for retirement instead of the current practice whereby members receive payment after they retire – sometimes too old and sick to put the monies into useful use.
The National Social Security Fund (NSSF) has taken the lead as, according to the Deputy Minister for Labour and Employment, Makongoro Mahanga, NSSF was currently looking into the possibility of providing housing and individual loans to its members using their contributions as collateral.
This is a welcome move which we think is long overdue, and should therefore be speedily implemented to enable members of the funds prepare themselves for retirement in good time so that they can be assured of comfortable lives upon retirement.
As mentioned earlier, Tanzania should strive for wider social security coverage while at the same time creating enabling environment for members of the funds use their contributions to the funds to improve their livelihoods.
For increased coverage, social security providers should target agriculture and informal sectors.
SOURCE: THE GUARDIAN
24th June 2011
Editorial Cartoon
While all international conventions recognise social security is a universal need and a basic human right, only one in five people in the world has adequate social security. And according to the International Labour Organisation (ILO), half of the world’s population is without any social security protection.
Tanzania too is in the same precarious situation as according to the Social Security Regulatory Authority (SSRA) Director General, Irene Isaka, only 3.5 per cent of over 40 million Tanzanians are currently registered with social security funds.
The DG told this newspaper in an exclusive interview that the percentage was not healthy for many Tanzanians because when they get older they would not be able to receive any security protection.
It is for this reason we view as a timely and positive move the plan by SSRA to increase the number of Tanzanians enjoying social security to 5 per cent by 2014 in the coming three years.
We specifically laud the move in the envisaged plan to increase social security coverage to farmers, pastoralists and other rural based populations so far neglected by the funds.
However, we believe time is ripe to gun for wider coverage – beyond the planned 5 per cent – if social security funds could target the country’s ever-growing informal sector which is billed to be the second biggest employer after agriculture.
Without an expanding industrial base, the majority of Tanzanians will for a long time to come continue to depend on agriculture and the informal sector for their livelihoods. And they need social security protection.
We strongly believe that this can be achieved if there is the political will as this may entail changes to the existing laws that established the various social security funds to develop new statutory schemes by extending existing or modified benefits to previously excluded groups.
We wish to urge the government to fully support the SSRA in its resolve as we believe Tanzania has potential opportunities that remain uncovered by the social security schemes if a well-designed social security scheme – which should essentially be sustainable and broad-based with adequate coverage – is put in place.
At the same time, we wish to appeal to social security funds to assist their members prepare for retirement instead of the current practice whereby members receive payment after they retire – sometimes too old and sick to put the monies into useful use.
The National Social Security Fund (NSSF) has taken the lead as, according to the Deputy Minister for Labour and Employment, Makongoro Mahanga, NSSF was currently looking into the possibility of providing housing and individual loans to its members using their contributions as collateral.
This is a welcome move which we think is long overdue, and should therefore be speedily implemented to enable members of the funds prepare themselves for retirement in good time so that they can be assured of comfortable lives upon retirement.
As mentioned earlier, Tanzania should strive for wider social security coverage while at the same time creating enabling environment for members of the funds use their contributions to the funds to improve their livelihoods.
For increased coverage, social security providers should target agriculture and informal sectors.
SOURCE: THE GUARDIAN
Wider social security coverage underway
By Felix Andrew
23rd June 2011
Authority aims at 5 per cent membership by 2014
Social Security Regulatory Authority Director General Irene Isaka briefs journalists in Dar es Salaam yesterday on her agency`s role. This was at the Public Service Week exhibitions going on at Mnazi Mmoja grounds.
The number of Tanzanians enjoying social security is expected to increase to 5 per cent by 2014 from the present 3.5, thanks to new strategies laid down by the Social Security Regulatory Authority.
Already the authority has started addressing six challenges which hinders smooth functioning of the social security funds countrywide.
Speaking to journalists in Dar es Salaam yesterday, the SSRA Director General Irene Isaka said currently only 3.5 per cent of Tanzanians are registered with social security funds.
The percentage was not healthy for the future of many Tanzanians, because when they get older they would not be able to receive any social protection, she said.
“We want to increase the percentage to at least 5 per cent in the coming three years if all things go well,” she said.
Isaka said they plan to increase coverage to farmers, pastoralists and other rural-based populations so far neglected by the funds.
She said an increase will necessitate changes to the laws which established the various social security funds.
“Currently the law does not recognise our authority. Once the Parliament has endorsed the changes we shall be able to implement our strategies,” she added.
Isaka said the authority has formed a research department which would study ways to increase the number of Tanzanians in the social security funds.
She said they had improved the communication department which would help sensitise Tanzanians on the role of social security funds. The SSRA also plans to establish social security week aimed at educating Tanzanians on its activities.
The DG named other challenges as transferability of members from one fund to another, depreciation of the value of shilling, lack of data and delayed member’s payments.
According to the DG, the authority that was formed early this year would ensure schemes remain secure and sustainable, members’ interests are protected and coverage is increased.
She also noted the task force which was established to address key challenges was about to complete its task
The taskforce drew its members from the Attorney General’s chamber, the ministry of Finance, the Bank of Tanzania, experts on Social Security from the International Labour Organization (ILO) and the ministry of Labour, Employment and Youth Development.
Experts say Tanzania has potential opportunities that remain uncovered by the social security schemes and which call for the government’s intervention to increase coverage.
A well-designed social security scheme should be broad-based with adequate coverage and be sustainable.
They say the authority should ensure that funds are invested according to rules or investment guidelines as the government looks at the possibility of widening coverage of social security services in the country, to include people who are self-employed in the informal sector.
Speaking to this paper in an interview, Dr Kingu Said Mtemi said some pension funds were not performing well, adding that there is a need for a review of the prevailing legislation to allow members to cross to funds that are more efficient.
He said time has come for the law to allow transferability of members from one fund to another to enable members pick those which can benefit them most.
Mtemi also urged the government to make sure that pension funds remain secure and sustainable.
“Those who have been tasked to secure members’ interests should make sure that they are protected and coverage is increased and the funds are invested according to the prevailing rules or investment guidelines,” he said.
He told the pension funds to review the members’ payment system saying most of them have become outdated.
“The shilling is ever depreciating, inflation is skyrocketing and even the taxes have gone up, these funds should now start paying members according to the value of the shilling,” he stated.
At the moment, only 3.5 per cent of Tanzanians are covered by the funds, while in Kenya coverage is 8 per cent and Uganda is 11 percent.
SOURCE: THE GUARDIAN
23rd June 2011
Authority aims at 5 per cent membership by 2014
Social Security Regulatory Authority Director General Irene Isaka briefs journalists in Dar es Salaam yesterday on her agency`s role. This was at the Public Service Week exhibitions going on at Mnazi Mmoja grounds.
The number of Tanzanians enjoying social security is expected to increase to 5 per cent by 2014 from the present 3.5, thanks to new strategies laid down by the Social Security Regulatory Authority.
Already the authority has started addressing six challenges which hinders smooth functioning of the social security funds countrywide.
Speaking to journalists in Dar es Salaam yesterday, the SSRA Director General Irene Isaka said currently only 3.5 per cent of Tanzanians are registered with social security funds.
The percentage was not healthy for the future of many Tanzanians, because when they get older they would not be able to receive any social protection, she said.
“We want to increase the percentage to at least 5 per cent in the coming three years if all things go well,” she said.
Isaka said they plan to increase coverage to farmers, pastoralists and other rural-based populations so far neglected by the funds.
She said an increase will necessitate changes to the laws which established the various social security funds.
“Currently the law does not recognise our authority. Once the Parliament has endorsed the changes we shall be able to implement our strategies,” she added.
Isaka said the authority has formed a research department which would study ways to increase the number of Tanzanians in the social security funds.
She said they had improved the communication department which would help sensitise Tanzanians on the role of social security funds. The SSRA also plans to establish social security week aimed at educating Tanzanians on its activities.
The DG named other challenges as transferability of members from one fund to another, depreciation of the value of shilling, lack of data and delayed member’s payments.
According to the DG, the authority that was formed early this year would ensure schemes remain secure and sustainable, members’ interests are protected and coverage is increased.
She also noted the task force which was established to address key challenges was about to complete its task
The taskforce drew its members from the Attorney General’s chamber, the ministry of Finance, the Bank of Tanzania, experts on Social Security from the International Labour Organization (ILO) and the ministry of Labour, Employment and Youth Development.
Experts say Tanzania has potential opportunities that remain uncovered by the social security schemes and which call for the government’s intervention to increase coverage.
A well-designed social security scheme should be broad-based with adequate coverage and be sustainable.
They say the authority should ensure that funds are invested according to rules or investment guidelines as the government looks at the possibility of widening coverage of social security services in the country, to include people who are self-employed in the informal sector.
Speaking to this paper in an interview, Dr Kingu Said Mtemi said some pension funds were not performing well, adding that there is a need for a review of the prevailing legislation to allow members to cross to funds that are more efficient.
He said time has come for the law to allow transferability of members from one fund to another to enable members pick those which can benefit them most.
Mtemi also urged the government to make sure that pension funds remain secure and sustainable.
“Those who have been tasked to secure members’ interests should make sure that they are protected and coverage is increased and the funds are invested according to the prevailing rules or investment guidelines,” he said.
He told the pension funds to review the members’ payment system saying most of them have become outdated.
“The shilling is ever depreciating, inflation is skyrocketing and even the taxes have gone up, these funds should now start paying members according to the value of the shilling,” he stated.
At the moment, only 3.5 per cent of Tanzanians are covered by the funds, while in Kenya coverage is 8 per cent and Uganda is 11 percent.
SOURCE: THE GUARDIAN
Social security funds urged to review benefits
By Lusekelo Philemon
18th May 2011
Local social security funds have been challenged to restructure their schemes with a view to improve retirement benefits for their members.
National Institute of Productivity (NIP) management analyst Anselm Namala threw the challenge when presenting a paper at Government Employees Provident Fund (GEPF)’s 3rd stakeholders’ conference held here recently.
He suggested that members’ benefits should reflect the actual living standards in the country. “Health, housing schemes and monthly pensions should be tailored to help low income earners,” said Namala.
He explained, “Again, one of the pension funds’ products is preparing members for life after retirement. This course has proved to be very useful to most retirees. My experience shows that retirees need something more than money.”
Namala further said retirees should be prepared psychologically before attaining the retiring age. “Without good plans, retirees cannot succeed after retirement life,” he stressed.
He also expressed concern over the current working environment for not letting employees to retire prematurely or early and benefit like those retiring after attaining the minimum or maximum age.
“That is why retirement is regarded by some employees as a killer ghost,” said Namala, adding that among key challenges facing social security systems at the moment is limited coverage due to the fact that employees in the informal sector don’t benefit from the schemes.
“The formal sector labourers contributes to only 5.4 per cent of the whole labour force in the country of over 16 million people. This means the remaining 15 million labour force are engaged in informal sector and therefore, not covered by the current social security schemes,” Namala said.
SOURCE: THE GUARDIAN
18th May 2011
Local social security funds have been challenged to restructure their schemes with a view to improve retirement benefits for their members.
National Institute of Productivity (NIP) management analyst Anselm Namala threw the challenge when presenting a paper at Government Employees Provident Fund (GEPF)’s 3rd stakeholders’ conference held here recently.
He suggested that members’ benefits should reflect the actual living standards in the country. “Health, housing schemes and monthly pensions should be tailored to help low income earners,” said Namala.
He explained, “Again, one of the pension funds’ products is preparing members for life after retirement. This course has proved to be very useful to most retirees. My experience shows that retirees need something more than money.”
Namala further said retirees should be prepared psychologically before attaining the retiring age. “Without good plans, retirees cannot succeed after retirement life,” he stressed.
He also expressed concern over the current working environment for not letting employees to retire prematurely or early and benefit like those retiring after attaining the minimum or maximum age.
“That is why retirement is regarded by some employees as a killer ghost,” said Namala, adding that among key challenges facing social security systems at the moment is limited coverage due to the fact that employees in the informal sector don’t benefit from the schemes.
“The formal sector labourers contributes to only 5.4 per cent of the whole labour force in the country of over 16 million people. This means the remaining 15 million labour force are engaged in informal sector and therefore, not covered by the current social security schemes,” Namala said.
SOURCE: THE GUARDIAN
Social security funds faulted over benefits
By The guardian reporter
3rd May 2011
Civic United Front (CUF) national chairman Prof Ibrahim Lipumba has raised concerns over deep-rooted bureaucracy in social security funds, saying they make the members unable to benefit from their own contributions.
The politician, who was giving his views on Sunday on a local TV station on marking the International Workers Day (May Day), said it was difficult for the workers to reclaim their contributions after resigning or retiring from work.
“When one resigns from work, retires or dies, it is extremely difficult for his funds to be obtained from the respective social security fund,” said Lipumba.
He further said that while members of the funds were living in a hard way, those working in the funds were wallowing in luxury.
“It is as if these funds are meant to benefit the few who run the funds and not the workers who contributes to them,” the Prof said.
He said the funds were very important and critical for the social well-being of the world's community.
Lipumba cited benefits workers in Singapore enjoy from their social security funds, saying the members have benefited a lot, with the majority having modern homes, enjoys excellent heath services and are able to fund their children’s education.
He said political interference was the major bottleneck in the efficient functioning of the funds in Tanzania.
SOURCE: THE GUARDIAN
3rd May 2011
Civic United Front (CUF) national chairman Prof Ibrahim Lipumba has raised concerns over deep-rooted bureaucracy in social security funds, saying they make the members unable to benefit from their own contributions.
The politician, who was giving his views on Sunday on a local TV station on marking the International Workers Day (May Day), said it was difficult for the workers to reclaim their contributions after resigning or retiring from work.
“When one resigns from work, retires or dies, it is extremely difficult for his funds to be obtained from the respective social security fund,” said Lipumba.
He further said that while members of the funds were living in a hard way, those working in the funds were wallowing in luxury.
“It is as if these funds are meant to benefit the few who run the funds and not the workers who contributes to them,” the Prof said.
He said the funds were very important and critical for the social well-being of the world's community.
Lipumba cited benefits workers in Singapore enjoy from their social security funds, saying the members have benefited a lot, with the majority having modern homes, enjoys excellent heath services and are able to fund their children’s education.
He said political interference was the major bottleneck in the efficient functioning of the funds in Tanzania.
SOURCE: THE GUARDIAN
Social security schemes need to rise to occasion
By Editor
7th April 2011
Delegates to a recent meeting of the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) were unanimous that the law ought to provide for the possibility of people seeking membership in pension funds of their choice.
They also appealed to the government to ensure that all such schemes place a premium on efficiency and not failing security and sustainability tests.
That voices were being raised over the importance of streamlining or rationalising the duties and responsibilities of pension funds in the country at a time when concrete measures have already been taken to that effect is, at best, surprising.
Could it really be true that the Social Security Regulatory Authority, which was created by law in 2008 and which President Jakaya Kikwete launched in the third week of last month, was established unbeknownst to agencies such as TCCIA?
Yes, not even a month has passed since SSRA officially took up the task it was set up to undertake – that of regulating the operations of social security and pension funds in the country. However, the period between the enactment of the law under which the agency was established and its official launch on March 23 is long enough for all interested parties to have a rough idea about what the whole thing entails.
Anyway, SSRA is now in business. The much we know is that it is still busy trying to sell itself alongside identifying problems or challenges in its area of operation and generally proving its worth before a public eagerly waiting to see the difference it will make in the state of pension funds and the lives of pension fund members.
Indications are that all six pension or social security funds in the country – National Social Security Fund, Parastatal Pensions Fund, National Health Insurance Fund, Local Authorities Pension Fund, Public Service Pension Fund and Government Employees Pension Fund – are fully briefed on the bearing the advent of SSRA will likely have on their future operations.
Fortunately, most say they hope to have lined themselves up appropriately enough to face the future with enhanced hope by the time the regulatory authority digs in.
In a recent comment, we argued that the easiest way for social security schemes to expand their membership bases is to come up with impeccable evidence that they are institutions of unquestionable integrity whose members are sure to find value comfort and relief in retirement.
We also noted that the schemes’ infrastructural and other investments are implemented largely thanks to members’ contributions and should not be made at the expense of the members.
SSRA will be credited with a job well done if, as it plays its regulatory role, it sweeps the social security sub-sector clean by ending unhealthy inter-scheme competition and creating conditions making it possible for more ordinary Tanzanians to join and benefit from the industry.
We say this because we understand that, so far, social security schemes serve no more than six per cent of Tanzania’s labour force and 3.5 per cent of the country’s population. This is by all accounts sad, and the schemes should feel duty-bound to save the day.
SOURCE: THE GUARDIAN
7th April 2011
Delegates to a recent meeting of the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) were unanimous that the law ought to provide for the possibility of people seeking membership in pension funds of their choice.
They also appealed to the government to ensure that all such schemes place a premium on efficiency and not failing security and sustainability tests.
That voices were being raised over the importance of streamlining or rationalising the duties and responsibilities of pension funds in the country at a time when concrete measures have already been taken to that effect is, at best, surprising.
Could it really be true that the Social Security Regulatory Authority, which was created by law in 2008 and which President Jakaya Kikwete launched in the third week of last month, was established unbeknownst to agencies such as TCCIA?
Yes, not even a month has passed since SSRA officially took up the task it was set up to undertake – that of regulating the operations of social security and pension funds in the country. However, the period between the enactment of the law under which the agency was established and its official launch on March 23 is long enough for all interested parties to have a rough idea about what the whole thing entails.
Anyway, SSRA is now in business. The much we know is that it is still busy trying to sell itself alongside identifying problems or challenges in its area of operation and generally proving its worth before a public eagerly waiting to see the difference it will make in the state of pension funds and the lives of pension fund members.
Indications are that all six pension or social security funds in the country – National Social Security Fund, Parastatal Pensions Fund, National Health Insurance Fund, Local Authorities Pension Fund, Public Service Pension Fund and Government Employees Pension Fund – are fully briefed on the bearing the advent of SSRA will likely have on their future operations.
Fortunately, most say they hope to have lined themselves up appropriately enough to face the future with enhanced hope by the time the regulatory authority digs in.
In a recent comment, we argued that the easiest way for social security schemes to expand their membership bases is to come up with impeccable evidence that they are institutions of unquestionable integrity whose members are sure to find value comfort and relief in retirement.
We also noted that the schemes’ infrastructural and other investments are implemented largely thanks to members’ contributions and should not be made at the expense of the members.
SSRA will be credited with a job well done if, as it plays its regulatory role, it sweeps the social security sub-sector clean by ending unhealthy inter-scheme competition and creating conditions making it possible for more ordinary Tanzanians to join and benefit from the industry.
We say this because we understand that, so far, social security schemes serve no more than six per cent of Tanzania’s labour force and 3.5 per cent of the country’s population. This is by all accounts sad, and the schemes should feel duty-bound to save the day.
SOURCE: THE GUARDIAN
Subscribe to:
Posts
(
Atom
)