Transcript BENEFIT STRUCTURE

Social Security in Tanzania
A Regulatory Perspective
Irene C. Isaka,
Director General
23rd PPF ANNUAL MEMBERS CONFERENCE
2-4 October 2013; AICC-Arusha
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
BENEFIT STRUCTURE
Death
gratuity
Invalidity
Health care
Gratuity
Schemes
'Benefits
Survivors
benefits
Maternity
Education
Old age
Employment
injury
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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
functions
regulatory
Advisory
REGULATORY FUNCTIONS
Registration of
managers,
custodians,
schemes and
administrators
Advising on social
security policy
issues
Facilitating
extension of Social
security coverage
Regulation and
Supervision of the
performance of all
managers,
custodians, and
administrators.
Conducting
programmes for
public awareness on
social security
Initiating studies,
recommending,
coordinating and
implementing
reforms in the
social security
sector
Issuance of
guidelines for the
sector
Protecting interests
of members
Monitoring
performance of the
sector
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
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 4.8 Trl
Assets 6.4 Trl
Guidelines Issued
Membership
guidelines
Data
Management
Guidelines
Totalization
Guidelines
•Providing guidance for membership registration.
•Membership registration to respect the freedom of choice
under S. 30.
•Promoting integrity in order to remove complaints leading
to unsound practices.
•Extending membership coverage
•Prescribing standard data fields to be captured for scheme
membership data,
•Prescribing standard report formats,
•Provide a standard glossary of terms for use across the
sector,
•Directing measures to be in place to ensure availability of
data
•Providing guidance on how to treat members of schemes
who have contributed to more than one scheme
•Safeguarding the interest of members
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Guidelines……..
Conduct of
Actuarial Services
guidelines
•Providing a framework which will guide Trustees, firms and
individuals intending to undertake actuarial services
•Provides guidance on standard procedures and practices for
provision of actuarial services.
Conduct of Affairs
of the Board
Guidelines
•Establish standards for corporate governance processes and
structures,
•Provide guidance to Trustees for proper discharge of their
fiduciary responsibilities,
•Promote and maintain public confidence in schemes
Investment
Guidelines
• Prescribe investment limits to foster risk diversification
• Safeguard members interest
• Foster good governance in investment decisions
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Guidelines in progress
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PUBLIC AWARENESS
Overview
Current status
Future
Direction
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Social Security week
Seminar presentations
Employer initiated presentations
Workshops for employee/employer/
students/ informal sector organizations
Face to face meetings
Exhibitions
Radio/ TV programmes
Articles in print media
Interactions with social
media(hakipensheni, socialsecurity.or.tz,
hifadhiyajamii.or.tz
Long term Perspective
Reforms are divided into 3 phases;
3. Growth &
Prosperity
2. Stabilisation
1. Extension &
Harmonisation
Your Role
YOUR ROLE towards Social Security for all
in
SSFA
•
•
•
•
Encourage new staff to exercise their rights
Follow up on employee contributions
Educate employees on benefits
Encourage a personal finance education strategy in the
organization
• Encourage establishment of supplementary schemes
• Spread your knowledge in your communities
www.ssra.go.tz
Future
Direction
2nd Floor Alpha house,
Bagamoyo road
Tel: 022 2761681
[email protected]
ASANTENI SANA