The Public Service Social Security Act came into force merging four previously existing funds
Outcome achieved
The President of the Tanzania signed the Public Service Social Security Fund Act, 2018 (No. 2) (the PSSSF Act) on 8 February 2018. The PSSSF Act merged the four following funds: Public Service Pension Fund (PSPF), Local Authority Pension Fund (LAPF), Government Employees Pension Fund (GEPF) and Parastatal Pension Fund (PPF). The PSSSF Act also repealed the Public Service Retirement Benefit Act, the LAPF Pension Funds Act, the GEPF Retirement Benefits Act and the PPF Pensions Fund Act.
The PSSSF Act was prepared by the government in consultation with social partners and other stakeholders.
The PSSSF Act became effective on 1 August 2018 and its regulations became effective later on 17 August 2018. The PSSSF Law and its regulations modified the pension formula and introduced two new short-term benefits branches: an
unemployment insurance benefits scheme and a sickness benefits scheme.
On 8 February 2018, as a result of the publication of the PSSSF Act, amendments were made to the National Social Security Fund Act (NSSF Act) to introduce an unemployment insurance benefits scheme and the removal the employment injury benefits branch of the NSSF. It is the Workers Compensation Fund which has the mandate to provide employment injury benefits to workers since 1 July 2015.
Some components of the PSSSF Act and its regulations as well as most amendments to the NSSF Act comply with the Social Security (minimum standards) convention, 1952, (No 102).
In consultation with social partners, the Government prepared and endorsed the two acts for PSSF and NSSF and their regulations with gender considerations to address gender disparities and promotion of gender equality. The acts and regulations provide for equal opportunity and treatment between men and women in provision of social security benefits.
ILO's contribution to the outcome
In 2016, the Government of Tanzania requested the ILO to conduct the actuarial valuation of the five social security pension schemes. The Government also requested the ILO make recommendations to improve the national social security system. Based on discussions with the Social Security Regulatory Authority, board members of the five pension funds as well as workers and employers, it was agreed that the upcoming reforms would have to focus on (a) adequacy of benefits, (b) affordability of benefits, (c) sustainability of benefits and (d) equity among members.
Based on the actuarial valuations’ findings, and taking into account the objectives of the stakeholders, the ILO assessed different policy reform options and suggested to the Government to undertake a specific set of reforms.
In 2017 and 2018, the ILO assisted the Government of Tanzania in the drafting and review of the PSSSF Law and its regulations. The actual PSSSF Act and its regulations as well as the amendments made to the NSSF Act applied some of the most important recommendations made in ILO actuarial valuation report. Nonetheless, the first actuarial valuation of the PSSSF as of 1 August 2018 concluded that more changes would be needed.
The ILO supported the government with the review of the PSSSF Act and its regulations as well as the amendments to the NSSF Act. Legal comments were provided by ILO actuaries and legal specialists with the view to make the legal framework compliant with the Social Security (minimum standards) Convention, 1952, (No 102). Despite the efforts made by the ILO, some components of the Laws and regulations remain non-compliant with the C.102.
The ILO supported the government with the review of the PSSSF Act and its regulations as well as the amendments to the NSSF Act to ensure they have gender as well as non-discrimination considerations.
Gender equality & non-discrimination
Due attention was given to ensuring that the principle of gender equality in the domain of social protection for the population was taken into account under the two actuarial valuations conducted. The projections were based on age- and sex-disaggregated data, which allowed to comment on the sex-profiles of contributors and beneficiaries, where relevant.
International Labour Standard
The ILO supported the government with review of the PSSSF Act and its regulations as well as the amendments to the NSSF Act. Legal comments were provided by ILO actuaries and legal specialists in view to make the legal framework compliant with the Social Security (minimum standards) convention, 1952, (No 102). Despite the efforts made by the ILO, some components of the Laws and regulations remain non-compliant with the C.102.
Social dialogue
The enactment of the PSSSF Act and its regulations and well as the amendments to the NSSF Act results from discussions with the Social Security Regulatory Authority, board members of the five pension funds as well as workers and employers.