[ad_1]
The Social Security Regulatory Authority (SSRA) said yesterday that the government currently does not borrow from pension plans to fund its projects.
The SSRA made a statement to that effect yesterday in Dar es Salaam after asserting that pension funds were financially unable to serve their members, especially retirees, because they had transferred their money to finance government projects.
Dr. Irene Isaka (pictured), chief executive officer of the authority, said at a press conference that the government had stopped borrowing from pension funds since 2013, after reaching its ceiling of highest loan.
"At the moment, no amount of money goes to the government in the form of loans, unless the government vouches for its institutions that want to obtain loans from pension funds to implement their projects," he said. she explained.
In the same vein, Isaka said that pension funds are financially stable. According to her, the data indicate that in June of this year, the social security sector had assets of 12.82 trn / – and a total investment of 11, 9 trn / -.
"I therefore confidently declare that our sector is always strong," she said. By serving the members, she added, the newly created Public Service Social Security Fund (PSSF) has already paid 397 billion euros to 49,000 pensioners.
The PSSSF was created as a result of the adoption of the Public Service Social Security Fund Act of 2018, which came into force in August of this year.
"I want to assure stakeholders that their decision to participate in the development of this law was fair, they do not need to worry," she said, as some members of the public are currently condemning MPs, the government and other stakeholders. introduce the law.
Critics say the new law has come up with new pension calculations that reduce the amount of pensions for members. Mr. Isaka said, however, that current pensions are calculated according to the formula applied since 2014.
"Retirees who were initially in the service of the NSSF and the PPF were receiving their pensions on the same terms, even before the new law," she said.
"What has really changed is the lump sum paid to this small group of members, which represents only 20% of all members of the social security systems in the country … The law has therefore imposed on them to receive the same percentage of their lump sum. " 25%, as their colleagues do, "she explained.
Speaking on the dependents of the deceased retirees, SSRA's director of legal affairs, Onorius Njole, said that under the new law, dependents are paid for 36 months after the death of the member.
He explained that social security plans could be linked in some way to the operation of the insurance, that in the event of the death of a member, the family can not claim the funds paid into the plan.
"Members really contribute to a pool, so that, when they die, their contributions support their colleagues who will receive pensions for many years after retirement until death, regardless of the amount of their benefits. contributions, "she said.
[ad_2]
Source link
