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Tanzania announce to merge five pension funds, deputy Minister tells Parliament   

Deputy Minister Mavunde said the decision to merge the funds would be endorsed by the cabinet in the near future.

Tanzania announce to merge five pension funds, deputy Minister tells Parliament   

Deputy Minister Mavunde said the decision to merge the funds would be endorsed by the cabinet in the near future.

11 September 2017 Monday 11:05
Tanzania announce to merge five pension funds, deputy Minister tells Parliament   

By Felix Andrew

The government of Tanzania has officially announced to merge five pension funds out of the current seven in order to improve services as well as be beneficial to the members

This was said in a Parliament today by the Deputy Minister in the Prime Minister’s Office (Policy, Parliamentary affairs, labour, employment and disabled) Anthony Mavunde, when responding to a question poised by Busega legislator Raphael Chegeni (CCM).

The MP had wanted the government to come up with a statement as to when all the pension funds would be merged.

Reacting, Deputy Minister Mavunde said that five pension funds will be merged in order to improve services.

However, he did not mention names of the funds to be merged but said already the government had collected views from various stakeholders on how to improve social security industry in Tanzania.

Deputy Minister Mavunde said the decision to merge the funds would be endorsed by the cabinet in the near future.

According to the Social Security Regulatory Authority (SSRA), currently the country has seven social security funds--National Social Security Fund (NSSF), PPF Pension Fund, Public Service Pension Fund (PSPF), Local Authorities Pension Fund (LAPF), Workers Compensation Fund (WCF) , Government Employees Provident Fund (GEPF) and National Health Insurance Fund (NHIF), which offer similar benefits.

For sometimes, stakeholders have been engaged to air their views on envisaged reduction in number of the social schemes from the current number to either one or two to reduce the costs of pension benefits and operating costs.

Among other recommendations, stakeholders have for sometimes now been proposing that the funds should be merged to form either one or two funds---one for public sector and the other for private sector. The experts argue that costs to operate social security funds are higher except with the Public Sector Pension Fund.

According to SSRA Director General Irene Isaka only the PSPF had low operating costs compared to the others. The high cost of running the other funds is ruining their ability to offer quality services, prompting the SSRA to prepare guidelines to reduce their operating costs.

As of July last year, the funds were directed to spend no more than 10 per cent of their values -- down from 15 per cent

Azania Post

Updated: 12.09.2017 16:53
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stanton nyagawa 2017-09-11 21:21:06

hii itaongeza ulasimu sana katika kutoa Huduma maana itaondoa ushindani na mwishowe watu watahudumiwa kimazoea kama ilivyo mashirika yasiyo na ushindani kama shirika letu la Umeme Tanzania

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privanus katinhila 2017-09-12 11:26:12

Its a good thing and we are so late to reach this particular decision. Do it for the betterment of our people and service delivery

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Petet 2017-09-12 20:58:33

Najngana nawe Station, hii itapelekea mifuko iwe monopoly kama Tanesco na mwishowe huduma mbovu kwa wadau

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rgn smd 2017-09-12 22:40:03

That will worse decision ever...!! Let ssra work to monitor them not to merge them.

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PM 2017-09-12 22:46:30

This will kill competition, that will kill innovation that will destroy quality of service.

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kasusula david 2017-09-12 22:57:12

vyovyote itakavyokua lakini mtoe mafao kwa mtu ambae anaacha au anaachishwa kazi.huu utaratibu wa fao la kukosa ajira hautakua na manufaa yoyote kwa muajiriwa na lengo lake ni kuumiza wafanyakazi tu.mwingine anataka afanye kaz miaka 2 achukue pesa yake afanye biashara.kazi zenyewe sasa hivi hasa private sector hakuna job security.muda wowote kazi inapotea.chonde chonde msitumie pesa hzi kujenga viwanda vyenu.tafuteni means nyingine.msiumize wafanyakazi.tatizo jingine tuna copy tu mambo toka kwa wazungu.eti sheria ya FAO haielekezi kujitoa na hii mifuko bila kujua mazingira halisi ya kazi hapa kwetu.hakuna job security hapa.

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gm 2017-09-29 05:59:01

It's a proper way to get well services to the public like what TRA is doing currently
SSRA Should spend up the exercise