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. 3 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 7 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