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| Minister of State in the Prime Minister’s Office, Policy Parliamentary Affairs, Labour, Youth, Employment and Disabled, Jenista Mhagama. |
Fielding questions from journalists on PSSSF operations in Dodoma on Wednesday, the Social Security Regulatory Authority (SSRA) Director General Irene Isaka said the government has agreed to settle the entire debt subject to thorough verifications.
“The government has committed itself to pay its debts to the pension funds, the non-cash bonds will be used to settle the bills,” Ms Isaka said without stating the exact amount of the debts.
She explained further that the government stopped borrowing money from the social security funds since 2014 after hitting the borrowing limit.
PSSSF, which became operational on August 1, 2018, has taken over a myriad of challenges of the defunct social security funds.
Minister of State in the Prime Minister’s Office, Policy Parliamentary Affairs, Labour, Youth, Employment and Disabled Jenista Mhagama, speaking to reporters in Dodoma on Wednesday, assured members of the merged funds that all their assets and investments were in good hands.
She said the regulations are in final stages, hinting that public awareness will be conducted to avail members with detailed information on the new legislation.
The minister assured all pensioners that their monthly benefits will be paid without delays.
The National Social Security Fund (NSSF) will serve the private sector while the PSSSF, which combines the former PPF Pension Fund, Public Service Pension Fund (PSPF), Local Authorities Pension Fund (LAPF) and Government Employees Provident Fund (GEPF), will handle the public sector.
“Let me assure members of the public that the government has completed all the processes to enable the law to start working, public servants will now be in one fund and all members savings and benefits are well taken care of,” she maintained.
She added: “The government made all necessary preparations for smooth transition to ensure that all is well taken care of and members’ benefits are in good hands.”
SSRA Director of Legal Services Onorius Njole said there will be no taxes on pensioners’ terminal or monthly benefits, noting that the new legislation provides for unemployment benefit to those terminated from job before retirement age.
The benefit however excludes employees who tender resignation letters.
“The pension funds will be paying their members monthly benefits as they look for another job, but not withdrawal benefit,” he told the one-day media seminar.
Announcing PSSSF operationalisation early this month, Ms Mhagama cited some of the preparations as bringing all members and retirees together and putting in place the requisite information and technology system for registration of new members as per the law.
“We have prepared a new database of members and contributions…we have completed working on the financial records of all members and we are presently working on various regulations of the law to finalise the entire process,” she noted.
The minister said they were also done with the verification of all assets that belonged to the four funds, including bank accounts, investments, debts, incomes and members’ contributions.
She said the Bank of Tanzania (BoT) has been entrusted with the custody of some documents like title deeds, tenant contracts and share certificates that belonged to the merged funds.
“The documents will be handed over to the PSSSF management,” said the minister, adding that it is the government’s dream to have a vibrant fund to serve the public servants.
Daily News
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