Parliament set to work on social security amendments afresh

By Sylivester Domasa

4th August 2012

John Mnyika

The Shadow Minister for Energy and Minerals, John Mnyika (CHADEMA) will on Monday table a private Bill in Parliament to press the House to review the amendments made to the Social Security Laws (Amendments) Bill, 2012.

The law whose amendments were made in April, this year, restricts members of various pension funds to claim their contributions until they attain the statutory retirement age of 55 years. It also bars members of the social schemes from pulling out from the funds even when they lose their jobs under whatever circumstances.

Already, Mnyika who is also Ubungo legislator has written an official letter to the National Assembly Secretary Dr Thomas Kashilila expressing his determination to table the bill under certificate of emergence.

Already, there are reports that about 2,000 workers from the mining sector are planning to stage a demonstration in Dar es Salaam today in protest against the amendments. Police have issued a permit for the procession.

 Addressing a press conference yesterday here, Mnyika said he reached the decision after noticing that the newly released timetable for the remaining ministries to present their budget estimates for the 2012/13 fiscal year, had not included private motions posed by legislators.

Mnyika said following the parliament timetable to fail to include private motions, the move indicated that, the House was not in position to discuss the matter which had brought confusion among social security beneficiaries.

Thanks to the parliamentary standing regulations 81 (1) of 2007, Mnyika said that the section empowers any lawmaker to present a private bill.

“In order for the bill to be mentioned three times in the house, I am planning to collect 10 signatures from legislators supporting the motion, before tabling a private bill of law on Monday,” he said noting that time for announcing the bill will be counted only if section 81 (5) of the parliamentary regulation is observed.

The regulation requires the legislator posing a private bill to have collected at least 10 signatures.
However, Mnyika said his move to table the private bill of law does not intend to scrap the whole amendment -- only to remove a section that prohibits members of the pension funds to claim their contributions until they reach the statutory retirement age.
In addition, the legislator said after writing an official letter to Dr Kashilila, he will be legally provided with all official documents that include the amended bill to help him defend his bill he intends to present.

Mnyika advised Social Security Regulatory Authority (SSRA) to immediately announce the decision to revoke their recently announcement which instructs beneficiaries intending to withdraw from funds to stop from doing so until the next six months.

He said it was lawful for SSRA to prohibit its members from claiming their contributions while understanding that the amended act had no regulations.
“I apology to my voters that we failed to prevent this terrible Act before being signed by the President as a law, likewise SSRA should also do the same … apology to the public,” he said.

Mnyika also said the section was not presented during the first announcement of the bill and it was only tabled in the second reading of the bill without clear notice as to why it was included at all.
MPs had since expressed their “dismay” on the amendments
The government says the Social Security Laws (Amendments) Bill, 2012 were made in order to harmonize various Acts that established the country’s social security schemes and the establishment of the Social Security Regulatory Authority (SSRA) itself

SSRA authority says it is preparing guidelines to enable members and stakeholders in the social security sector to get their benefits according to the nature of their work.
The MP’s decision comes hardly two weeks after Kisarawe MP on CCM ticket Seleman Jafu caused a furor in Parliament when he wanted MPs to press the government to table the amendment Bill to the Act immediately to rectify the anomaly.

Jafu told the august House that, bearing in mind the amendments to the Social Security Laws Act, 2012 prevented employees from accessing their terminal benefits until they retired at 55, it was imperative for the Parliament to discuss the matter in order to rectify the situation.

“By discussing this matter the Parliament will not only be defending wananchi but also we, MPs ourselves, who subscribe to these pension funds,” he was quoted as telling the House.

However,  the Parliamentary Standing  Committee on Standing Orders, under Speaker Anne Makinda, requested Jafu to put his thoughts in writing -- and submit the same to the Parliamentary Standing Committee on Social Service -- for public hearing before advising the speaker on the next step.

SOURCE: THE GUARDIAN

Bill to amend Social Security Act planned

By Sylivester Domasa

7th August 2012

The National Assembly has agreed to table a bill under a certificate of urgency in the coming ninth parliamentary session to amend the current social security Act of 2012 that prohibits members of various pension funds to withdraw their contributions before reaching retirement age.

National Assembly Speaker, Anne Makinda said here yesterday when ruling on a motion tabled by in the House by Kisarawe Member of Parliament Selemani Jafo (CCM), who wanted the government to come up with a bill that would amend the law.

The law whose amendments were made in April, this year, restricts members of various pension funds from claiming their contributions until they attain the statutory retirement age of 55 years. It also bars members of the social schemes from pulling out of the funds even when they lose their jobs under whatever circumstances.

It also bars members of the social schemes from pulling out of the funds even when they lose their jobs under whatever circumstances.

In his recommendations in the August House, the Kisarawe MP asked the government to ensure that members of the social security funds continue to get their pensions as the government works on the matter.

Under the current arrangement, the law guarantees beneficiaries to ask for a housing loan only from financial institutions.

But the MP insists that there must be a section that makes a beneficiary to get a loan to do other activities.

Jafo who was presenting a private motion said the social security Act of 2012, was unfriendly to part time employees as it does not allow an employee who is suspended or stops from work before the age of 55 to enjoy the contribution he had been making to the funds.

With that regard he asked the government to come up with a bill to amend the law in the coming ninth parliament.

Parallel to the move, Jafo suggested in his motion that the government should remove the sections of the current Act which direct a servant to apply for the pension to the president.

He asked the government to save mining workers from being expelled following claims that they conducted a go slow when asking for their pensions.

The Kisarawe MP either added that the government should review the pension funds calculation principles in order to remove the loopholes which exploit workers.

Jafo’s motion comes barely three days after Chadema’s John Mnyika had spoken of plans to table the motion. Mnyika who is also Shadow Minister for Energy and Minerals had planned to table the Private BIll yesterday ( Monday) in Parliament to press the House to review the amendments made to the Social Security Laws (Amendments) Bill, 2012.

Already, Mnyika who is also Ubungo legislator has written an official letter to the National Assembly Secretary Dr Thomas Kashilila expressing his determination to table the bill under a certificate of urgency.

SOURCE: THE GUARDIAN

Kabwe questions need for social security funds

By The guardian reporter

17th August 2012

Zitto Kabwe

‘No need for them at all’ is the statement used by shadow minister for Finance Zitto Kabwe to describe the relevance, if any, of social security funds other than provide grounds for unscrupulous organisations which have recently been sprouting faster than mushrooms after heavy rains.

This opinion is shared by Kisesa MP Luhaga Mpina (CCM) who faulted venialities of the social security funds stressing that there is need for the Planning Commission to launch an intense examination as to their validity.

According to the legislator, the government has been spending more than 1.7trn/ a year to support social security institutions in the country and it is about time they were reviewed.

Kabwe who is also Kigoma-North MP, (CHADEMA) urged the government to set a mechanism that will control the number and even the very operations of social security institutions in the country. Kabwe, who is in favor of capping government spending/outlays, made the call yesterday in Dodoma when tabling alternative 2012/13 budget estimates for the ministry of finance.

The minister believes there is surplus financing of these funds and the availing such important information before the Parliamentary Public Organisation Committee, the public and the National Assembly will enable the government determine the excess financial capacity found in each institution.

At the moment social security funds in the country are the National Social Security Fund (NSSF), Parastatal Pension Fund (PPF), Local Authorities Pension Fund (LAPF), Public Service Pension Fund (PSPF), and the Government Employees Provident Fund (GEPF).

The shadow minister is calling upon clear performance review system to monitor and assess the liquidity of the social security funds and their investments and risk management.

In fact, for efficiency, Kabwe had this proposal for the government “…split NSSF and PPF to serve in the private and informal sectors then commission PSPF, LAPF and GEPF specific for civil servants.

SOURCE: THE GUARDIAN

Kabwe questions need for social security funds

By The guardian reporter

17th August 2012

‘No need for them at all’ is the statement used by shadow minister for Finance Zitto Kabwe to describe the relevance, if any, of social security funds other than provide grounds for unscrupulous organisations which have recently been sprouting faster than mushrooms after heavy rains.

This opinion is shared by Kisesa MP Luhaga Mpina (CCM) who faulted venialities of the social security funds stressing that there is need for the Planning Commission to launch an intense examination as to their validity.

According to the legislator, the government has been spending more than 1.7trn/ a year to support social security institutions in the country and it is about time they were reviewed.

Kabwe who is also Kigoma-North MP, (CHADEMA) urged the government to set a mechanism that will control the number and even the very operations of social security institutions in the country. Kabwe, who is in favor of capping government spending/outlays, made the call yesterday in Dodoma when tabling alternative 2012/13 budget estimates for the ministry of finance.

The minister believes there is surplus financing of these funds and the availing such important information before the Parliamentary Public Organisation Committee, the public and the National Assembly will enable the government determine the excess financial capacity found in each institution.

At the moment social security funds in the country are the National Social Security Fund (NSSF), Parastatal Pension Fund (PPF), Local Authorities Pension Fund (LAPF), Public Service Pension Fund (PSPF), and the Government Employees Provident Fund (GEPF).

The shadow minister is calling upon clear performance review system to monitor and assess the liquidity of the social security funds and their investments and risk management.

In fact, for efficiency, Kabwe had this proposal for the government “…split NSSF and PPF to serve in the private and informal sectors then commission PSPF, LAPF and GEPF specific for civil servants.

SOURCE: THE GUARDIAN