|
Law to guide operations of social security bodies in offing
2007-08-15 08:39:41
By Jane Mkonya
The government is proposing new legislation to enable the country`s social security institutions operate in a safe and fair manner.
Opening the second annual Social Protection and Insurance Workshop in Dar es Salaam on Monday, Deputy Minister of Labour, Employment and Youth Development Jeremiah Sumari underlined the need for a law to guide operations of social security institutions. The forum has been organised by the Institute of Finance Management (IFM).
`I appeal to IFM experts to come up with appropriate recommendations on the proposed law that will be forwarded to the government for consideration and decision,` said the minister.
The move, he said, would protect clients from unfair treatment by the respective institutions. `It would also open the gates for a number of investors in the industry…on the other hand, the legislation would protect the interests of clients of the institutions,` he added.
Institutions providing social security benefits in Tanzania include the Parastatal Pensions Fund (PPF), National Social Security Fund (NSSF), Public Service Pension Fund (PSPF), Local Authority Provident Fund (LAPF) and Government Employees Provident Fund (GEPF).
`While benefits provided by different schemes have, to some extent, addressed the needs of the members, a myriad of problems have emerged in connection with the delivery of the benefits,` said the minister.
Sumari identified some of the problems as inordinate delay in benefit payment, inadequacy of benefits due to depreciating value of the shilling, unethical practices such as demand for bribes, and scaled-down benefits due to non-remittance of contributions during a specified time period.
For his part, IFM deputy principal Thadeo Satta said: `Immediately after liberalisation of the insurance industry in 1996, enrolment dropped drastically and firms were not willing to sponsor their staff for courses offered by the institute.`
The situation improved during the last two years due to the introduction of student loans as well as private sponsorship, noted Satta.
He named the objectives of the workshop as forging a link between insurance and social security institutions and the department of insurance and social security administration, and bringing together stakeholders, including alumni, for the purpose of establishing contacts that would enable the department offer market-led programmes.
Others were enabling students pursuing insurance and social security administration studies meet prospective employers and exchange information on carrier- related issues, and providing a forum for participants to exchange views and experiences bearing on their respective professions.
|
