BabuK
JF-Expert Member
- Jul 30, 2008
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- 329
THE International Monetary Fund (IMF) has advised Tanzania to speed up formation of the Social Security Regulatory Authority (SSRA), to enhance growth of the industry and curb misuse of workers' savings.
In its response to a letter of intent by the Minister of Finance and Economic Affairs, Mr Mustafa Mkulo, the IMF said SSRA was crucial in regulating pensions and other related services.
"Beyond the banking system, continued absence of social security regulator remains a significant weakness in the economy," reads part of the IMF's statement.
IMF said although Tanzania's financial system has not been directly affected by the global crisis, supervision should remain vigilant and gaps in the framework plugged.
Minister Mkulo said in his letter of intent to IMF in November, last year, that investment guidelines for the pension funds, incorporating views from stakeholders, had been drafted and would soon become operational.
"A budget allocation for the pension regulator has been provided and new actuarial reviews of each of the pension funds are underway," he said.
The Minister for Labour, Employment and Youth Development, Prof Juma Kapuya, told the 'Daily News' recently that the recruitment of the management of regulator was still on, but was not sure as to when the chief executive would be picked.
"We have finished recruitment of some workers in some levels, but the decision on the chief executive is beyond my jurisdiction," he noted.
The law establishing an independent regulator of social security schemes was enacted in 2008.
The regulator will help pension funds to operate more efficiently and ensure their members are the main beneficiaries of respective schemes.
The government expects that the number of employees joining the social security schemes will increase, when their operations are regulated.
The Controller and Auditor General (CAG) has often in his annual reports criticised some pension funds for mismanaging public funds.
There are accusations that some funds are being influenced by key public figures to sink members' funds in dubious investments and give large, unsecured loans to politically connected individuals and companies.
Analysts see the coming of a regulator as a positive move, as the new law requires that managers and custodians invest pensions according to laid down criteria. The Bank of Tanzania (BoT) will, in collaboration with the authority, issue the investment guidelines.
The central bank, which will have powers to regulate and supervise the schemes' finances, will also monitor and ensure compliance to the guidelines by the managers and custodians.
The funds currently operating in the country are National Social Security Fund (NSSF), Parastatal Pension Fund (PPF), Government Employees Pension Fund (GEPF), Public Sector Pension Fund (PSPF) and Local Authority Pension Fund (LAPF).
Source: Daily News 4th Jan. 2010.
Pension watchdog ni muhimu ili kulinda AKIBA NA KUPANUA WIGO WA MAFAO Ya wafanyakazi ( WANACHAMA) ambayo yanabaniwa au "KUBAKWA" na wajanja.. Sheria za mafao haya nazo ziangaliwe maana zinawanyonya wafanyakazi na kuzineemesha taasisi hizi kwa migongo ya wana pensheni !!!
In its response to a letter of intent by the Minister of Finance and Economic Affairs, Mr Mustafa Mkulo, the IMF said SSRA was crucial in regulating pensions and other related services.
"Beyond the banking system, continued absence of social security regulator remains a significant weakness in the economy," reads part of the IMF's statement.
IMF said although Tanzania's financial system has not been directly affected by the global crisis, supervision should remain vigilant and gaps in the framework plugged.
Minister Mkulo said in his letter of intent to IMF in November, last year, that investment guidelines for the pension funds, incorporating views from stakeholders, had been drafted and would soon become operational.
"A budget allocation for the pension regulator has been provided and new actuarial reviews of each of the pension funds are underway," he said.
The Minister for Labour, Employment and Youth Development, Prof Juma Kapuya, told the 'Daily News' recently that the recruitment of the management of regulator was still on, but was not sure as to when the chief executive would be picked.
"We have finished recruitment of some workers in some levels, but the decision on the chief executive is beyond my jurisdiction," he noted.
The law establishing an independent regulator of social security schemes was enacted in 2008.
The regulator will help pension funds to operate more efficiently and ensure their members are the main beneficiaries of respective schemes.
The government expects that the number of employees joining the social security schemes will increase, when their operations are regulated.
The Controller and Auditor General (CAG) has often in his annual reports criticised some pension funds for mismanaging public funds.
There are accusations that some funds are being influenced by key public figures to sink members' funds in dubious investments and give large, unsecured loans to politically connected individuals and companies.
Analysts see the coming of a regulator as a positive move, as the new law requires that managers and custodians invest pensions according to laid down criteria. The Bank of Tanzania (BoT) will, in collaboration with the authority, issue the investment guidelines.
The central bank, which will have powers to regulate and supervise the schemes' finances, will also monitor and ensure compliance to the guidelines by the managers and custodians.
The funds currently operating in the country are National Social Security Fund (NSSF), Parastatal Pension Fund (PPF), Government Employees Pension Fund (GEPF), Public Sector Pension Fund (PSPF) and Local Authority Pension Fund (LAPF).
Source: Daily News 4th Jan. 2010.
Pension watchdog ni muhimu ili kulinda AKIBA NA KUPANUA WIGO WA MAFAO Ya wafanyakazi ( WANACHAMA) ambayo yanabaniwa au "KUBAKWA" na wajanja.. Sheria za mafao haya nazo ziangaliwe maana zinawanyonya wafanyakazi na kuzineemesha taasisi hizi kwa migongo ya wana pensheni !!!
