GOVERNMENT DEBT TO PENSION FUNDS SLASHED

The Prime Minister, Mr. Kassim Majaliwa, presents to the General Manager (Payments) of TANESCO, Mr. Francis Mcharage, a certificate in appreciation of the utility firm's monthly staff contributions to the National Social Security Fund (NSSF) in Arusha on Thursday. The PM had opened the Fund's sixth Stakeholders' meeting at the Arusha International Conference Centre (AICC). Looking on are third left: the Minister of State in the Prime Minister's Office (Policy, Parliament, Labour, Employment, Youth and Disabled), Mrs. Jenista Mhagama and her Deputy, Mr. Anthony Mavunde. Right is Chairman of NSSF Board of Trustees, Professor Samuel Wangwe.

The government is in the process of settling the debt it owes pension schemes and has so far paid 723bn/- out of the total 964bn/- outstanding amount as authorities are at the same time verifying the remaining project-oriented debts.

This was stated here on Thursday by the Prime Minister, Mr Kassim Majaliwa, during the opening of the Sixth Stakeholders Conference of the National Social Security Fund (NSSF).

According to the premier, the government is ensuring that the overhead costs of running social security schemes in the country is being cut down from the current 19 per cent of the total members’ contributions to just 10 per cent of the same.

He said the move was among the cost saving measures being undertaken by the Fifth Phase Government under President John Magufuli.

Meanwhile, it was observed during the conference that the number of Tanzanians covered under pension schemes has grown to reach 2.1 million as of June 2016, while assets investments by the social security funds have hit 10.3 trillion/- in total and the total benefits paid out to members in the same period has amounted to around 3.0 trillion/-.

“We are satisfied that the sector covering social security schemes in the country has grown by 15 per cent, from the value of 8.0 trillion/- by this time last year (2015) up to 10.2 trillion/- this year,” said Mr Majaliwa, adding that there were indications showing that the sector will further grow next year.

Members contributions to the social security schemes in the country have reached 2.2 trillion/- as of this year, while the value of all investments done under the schemes have on the other hand stretched to 9.3 trillion/- and counting.

The prime minister used the platform to remind employees that the success of any social security scheme depended on their prompt contributions of their workers’ pensions deductions to the basket -- a mandatory requirement.

Mr Majaliwa also called upon tenants residing or operating from properties and premises owned by the local social security schemes in the country to settle their rent payments in time to allow more investments by the funds as well as rapid extension of benefits to others.

Pension funds are common asset pools meant to cushion retired workers ‘life after employment,’ through generating stable growth over the long term and provide pensions for employees when they reach the end of their working years and commence retirement.

There are five mandatory social security schemes on Mainland Tanzania which are all regulated by the Social Security Regulatory Authority (SSRA). They include GEPF Retirement Benefit Fund, LAPF Pensions Fund (LAPF), National Social Security Fund (NSSF); PPF Pensions Fund (PPF) and the Public Service Pensions Fund (PSPF).

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