Tanzania’s president, John Magufuli, signed into law the Public Service Social Security Act, 2018 which joins all pension funds into two major entities.
Under this act, the entire labour force in both the public and private sectors will be served by the Public Service Social Security Fund (PSSSF) and the National Social Security Fund (NSSF).
Dr Tulia Ackson, the National Assembly deputy speaker said the President also approved the Written Laws Miscellaneous Amendment Act, 2018, which endorses the Public Service Social Security Act.
Upon publishing the regulations of the new law, the money in the previous funds will be moved to PSSSF at the commencement of this act.
The bill also expects workers in the private sectors and voluntary contributors to be transferred to the National Social Security Fund (NSSF).
Previously, there were five social security funds offering nearly the same benefits. The funds included the PPF Pension Fund, the National Social Security Fund (NSSF), the Local Authorities Pension Fund (LAPF), the Public Service Pension Fund (PSPF), and the Government Employees Provident Fund (GEPF).
The formulation of the new law entailed several consultations where stakeholders proposed that the funds be merged into one or two entities to decrease operational costs.
The International Labour Organisation (ILO) counselled the government to join the funds into one or two units to decrease the costs of pension benefits and the cost of operation. ILO based its counsel on the argument that having many social funds reduced their ability to provide quality services.
