What PSSSF boss’ appointment means

Dar es Salaam. President John Magufuli’s appointment of Mr Hosea Kashimba as new director general for the Public Service Social Security Fund (PSSSF) could be an indication that the head of state has faith in the performance of former PPF Pension Fund employees.

PSSSF was formed last year following the merger of the PPF Pension Fund, Public Service Pension Fund (PSPF), Local Authorities Pension Fund (LAPF) and Government Employees Provident Fund (GEPF).

In July last year (2018), President Magufuli appointed former PPF director general William Erio as new NSSF director general, replacing Prof Godius Kahyarara.

The Citizen understands that Mr Erio shifted to NSSF together with Mr Hosea Kashimba who used to work with him as director of internal audit at PPF Pensions Fund.

On Tuesday, the President appointed Mr Kashimba -- who is also a member of the African Inland Church Tanzania (AICT) choir at Chang’ombe -- as the new PSSSF director general, moving him from the position of director of internal audit at the NSSF.

Union leaders were quick to comment on the appointment yesterday, dispelling any argument that the frequent leadership changes could have a negative impact on their (members’) monies.

Tanzania Higher Learning Institutions Trade Union (THTU) national chairman Paul Loisulie said changes in leadership had nothing to do with sustainability of the pension funds.

“The sustainability of the funds depends on political will, investment in economically viable projects and formula used in paying retirement benefits,” Dr Loisulie told The Citizen.

He warned that if the government was not willing to release the dues frequently, the pension fund will not be sustainable.

In public sector government is required by the law to contribute to the funds 15 per cent of the worker’s salary, while employees contribute 5 per cent.

As for NSSF, private sector employers and their employees contribute ten per cent of the monthly gross pay each to the social security fund.

“The readiness of the government to support the funds matters a lot than how changes in leadership do,” said Dr Loisulie.

He also said it was high time investments were made in projects which would bring in tangible benefits to sustain the funds.

“Previously, pension funds were investing in buildings, which later on proved to be white elephant due to low demand from customers,” he said.

Furthermore, he said, the stability of the funds would be determined by the formula used to pay retirement benefits.

The Tanzania Union of Government and Health Employees (Tughe) executive committee member for Dar es Salaam Region, Mr Almas Mzee, said members’ money was in safe hands.

President, he added, had jurisdiction to appoint and terminate the appointment.

Reached for comment the new PSSSF boss, Mr Kashimba, said he would be in position to comment until he reports to office.