Transcript Document

Social Security in Tanzania
Irene C. Isaka,
What are good practices related to
contributory Schemes
Director General
THE NATIONAL POVERTY POLICY WEEK
25TH -27TH November 2013; DSM
By: Irene Isaka, DG-SSRA
Definition
Social Security
Protection measures provided by society against
economic and social distress caused by stoppages
or substantial reduction of earnings resulting from
sickness, maternity, employment injury,
unemployment, disability, old age, or death.
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THE FRAMEWORK
Framework
Tier three: Supplementary
Social Security Schemes –
voluntary contributions from
members
Tier two: Mandatory Social Security
Schemes – mandatory deductions from
salaries
Tier one: Universal, Social
Assistance Schemes – funded by
tax payers
MoH
MLE
PMORALG
MoF
SSRA
NSSF
LAPF
PPF
NHIF
GEPF
PSPF
Prepared by Irene Isaka
Social security coverage formal schemes
Coverage =
1,674,932 of
19,783,648 = 8%
BENEFIT STRUCTURE
Death
gratuity
Invalidity
Health care
Gratuity
Schemes
'Benefits
Survivors
benefits
Maternity
Education
Old age
Employment
injury
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SOCIAL SECURITY SCHEMES INVESTMENTS
PORTFOLIO
Fixed Income Assets
Equity
Properties
Membership 1.8mln
Contribution 1.6 Trl
19%
Benefits 1.06 Trl
18%
63%
Pensioners 87,000
Investments 4.9 Trl
Assets 6.4 Trl
Recent Initiatives in
Regulatory framework
Establishment of the
Social Security Regulatory
Authority; 2010
Gorvernance
Structure
Governance structure
Board Chairman
2 representative from
Employers organization and 2
representative from the most
employees organization
One representative
from the Public with sss
knowledge
Labour Commissioner
and a representative of
the Attorney General
The Treasury Registrar
GOVERNANCE HIGH LEVEL
MANDATORY SCHEMES
Ministry
responsible for
scheme
Appointment of
trustees,
performance
oversight
Ministry
responsible for
Social Security
SSRA
Legislation, policy formulation,
issuance of regulations and orders
Registration, Issuance of
guidelines, inspection&
supervision
Scheme trustees
Translation of legislation,
strategic planning, approval of
internal policies
Scheme
management
Implementation of policies,
guidelines and strategic plan
Inadequacy
CHALLENGES
Fragmented
benefits
Limited
coverage
• Each Scheme employs
its own formula as per
their established Act
•Indexation
•Low level of income
Inadequate
benefit
Differenc
e in
benefit
formula
Limited
coverage
•Low level of understanding on social security
matters
•Only 6% of workforce is covered
•Informal sector not much considered
INITIATIVES TO IMPROVE LIVELIHOOD
TO IMPROVE
THE
ACCESSIBILIT
Y AND
ATTRACTIVENE
SS OF SOCIAL
SECURITY TO
MIDDLE AND
LOW INCOME
OVERCOMING
CHALLENGES OF
ENFORCEMENT
INITIATIVES –
financial literacy
Create awareness by promoting of financial
education/literacy.
Promote consumer protection;
Promote inclusive finance.
Expanding rural financial services directly through banks,
insurance, social security, capital markets and indirectly through
SACCOS, VSLAs and VICOBAs;
Ensure interest rates structure that encourage financial saving
and borrowing;
Promoting of remote access financial services especially through mobile
phones (M-Pesa, Z-Pesa and Tigo Pesa), agency banking, branchless
banking, Point of Sale devises (POS);
Support product innovation, Ensure interest rates structure that encourage
financial savings and borrowing;
INITIATIVES TO IMPROVE LIVELIHOOD
Enrollment:
- E- registration to short code with mobile phone
- Auto Enrollment with purchase of other products using mobile
phone registration.
Receiving Contributions;
- Mobile money payments
Paying of benefits:
- Initiating claim through mobile phone and payment through the
mobile money
Administration of scheme:
- Public cloud: integrate mobile with online database?
ENABLING TECHNOLOGIES
Technologies in use
CUSTOMISED DELIVERY CHANNELS;
- Use popular channels – mobile money – see statistics below for Tanzania
ENCOURAGING ENROLLMENT
How to encourage enrollment
Multi-dimensional impact of social security benefits adequacy
Economic
reform
Social
Cohesion
Social
security
adequacy
Benefits adequacy
•shares the benefits
of economic growth.
•Makes any economic
reform programme
more pro-poor.
•Increases the
likelihood of success
of the reforms.
•Improve nutrition
health, and education
outcomes.
•Protects people from
shocks and directly
supports well-being.
•Protects assets.
•Enables economy to
better with stand
shocks.
•Provide economic
automatic stabilizer.
•Strengthens bond
between state and
people.
www.ssra.go.tz
Future
Direction
2nd Floor Alpha house,
Bagamoyo road
Tel: 022 2761681
[email protected]
ASANTENI SANA