New packages for pensioners in the pipeline, says regulator

The Social Security Regulatory Authority (SSRA) is preparing new benefit packages for members of social security funds, including unemployment benefits.

The SSRA director general Ms Irene Isaka told The Citizen yesterday that the regulator is working with the International Labour Organisation (ILO) in the plans to effect the benefits.

The two started conducting the actuarial evaluation for pricing the pension benefits in October last year.

It is anticipated that the task will take eight months.

“We are planning to introduce new pension benefits for members. We will introduce new packages of benefits that will include education, health and unemployment services to members. The SSRA in collaboration with ILO are conducting actuarial evaluation for pricing the pension benefits,” she told The Citizen yesterday.

Upon completion of the ongoing exercise, SSRA will be able to set guidelines for pension funds to offer new pension benefits aiming at discouraging premature withdrawals of benefits to members.

Under unemployment benefits, retirees and retrenched staff members will be able to enjoy certain packages to enable them to live a descent life, according to her.

She said since the core function of pension funds was to offer benefits from their members based on insurance principles, the SSRA was keen at improving the benefit packages. “We want members to contribute more and enjoy higher amount of benefits. We want the pension funds to reduce administrative costs and increase benefits to members,” she said.

Currently, there are seven social security funds in Tanzania and these are: the National Social Security Fund (NSSF), Government Employees Pension Fund, Public Sector Pension Fund, Local Government Employees Pension Fund, PPF Pension Fund, National Health Insurance Fund (NHIF) and Workmen’s Compensation Fund.

While the NHIF’s core business is health insurance, the NSSF is also offering health insurance benefits to its members. The Local Government Pension Fund has been offering loans for its members to undergo various courses at tertiary education levels.

When launching the SSRA board of directors in November last year, President Jakaya Kikwete directed the regulator to ensure that pensioners benefit more from their contributions.

President Kikwete had wanted the regular to find a lasting solution to the chromic cry of retirees against low pension benefits that do not take into account the rate of inflation.

The President also raised concern over decimal coverage of Tanzanians in the pension schemes. He called upon the SSRA and social security firms to mount more public education for more Tanzanians to join pension schemes through sacrificing luxurious spending.