Government: Talks underway on pension calculations

Wednesday November 24 2021
Pension pic

Minister of State in thePMO--Policy, Parliament, Labour, Employment, Youth and the Disabled, Ms Jenista Mhagama briefs journalists on the achievements of her ministry in the 60 years of independence in Dodoma, yesterday. PHOTO | COURTESY

By Sharon Sauwa
By Jacob Mosenda

Dodoma/Dar. The government said yesterday that negotiations aiming at coming up with a clear decision on the system to be used in calculating pension benefits after the transition expires in the 2022/2023 financial year were underway.

This was stated by the Minister of State in the Office of the Prime Minister--Policy, Parliament, Labour, Employment, Youth and the Disabled, Ms Jenista Mhagama, while describing the achievements of the ministry in the 60 years of Tanzania mainland independence.

She said the issue of the retirement benefits calculator was an inclusive and participatory one between the government, employers and employees.

She said they have specific instructions from the government that were still being worked on and a report on the matter will be issued jointly after lapse of the discussions.

“The statement will be made collectively based on the concept of the trinity when the whole process of going through the system is completed,” she said.

She said once they have completed the evaluation of the funds they will sit down to continue their discussion based on the information provided by the government and the various guidelines available.

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However, Ms Mhagama noted that there were still challenges in terms of benefits and that the situation was due to some councils initially not sending contributions to social security funds and thus causing benefits to be delayed.

She said in order to address the problem they have instructed the Public Service Pension Fund (PSSF) to establish a system that will enable every employee to access his / her contribution information via mobile phone.

She said the information would enable the client to prepare to receive his pension and eliminate the inconvenience he would experience of delaying his benefits when he retires.

In addition, Ms Mhagama said that PSSSF reports showed that the fund is claiming Sh10.6 trillion but in order for the government to pay the money it must verify.

“I would like to thank President Samia Suluhu Hassan for deciding the Sh2 trillion to be paid using a bond that the fund now receives and is able to repay the arrears,” said the Minister of State.

On the investment debt, Ms Mhagama said the government has so far paid Sh500 billion out of the Sh700 billion audited and that they believe in the process the debt would end.