Dodoma. The Tanzania Union of Government and Health Employees (Tughe) has called on the government to review the formula of calculating retirement benefits, which was introduced by 2014 pension regulations.

A Tughe statement comes hardly a day after the Tanzania Local Government Workers Union made a similar statement. Under the new formula, a retiree will receive 25 per cent of his/her servings after retirement, while the remaining 75 per cent will be paid in instalments.

Previously pensioners, save for those from National Social Security Fund, received 50 per cent of their savings in lump sum, while the remaining amount is paid in instalment.

However, Tughe vice chairperson Margaret Kajuju said there was a need for the government to review the formula.

According to her, Tughe was involved in the process to enact the law, which merged pension funds, but it was not consulted when the ministry was drafting regulations.

“Since the new regulations involve pensioners they should be consulted through their trade unions…it is unfair for the government to draw up such regulations, which in our opinion are oppressive,” said Ms Kajuju.

Tughe secretary general Hery Mkunda suggested that it was time for the government to get back to the negotiating table.