PM urges PSPF to come up with strategies to improve collections

20Apr 2019
The Guardian Reporter
The Guardian
 PM urges PSPF to come up with strategies to improve collections

PRIME Minister Kassim Majaliwa has directed the management of Public Service Pension Fund (PSPF) to come up with strategies to improve collections.

PRIME Minister Kassim Majaliwa.

He made the directive on Thursday during his meeting with PSSSF top management held at the funds headquarters in the country’s capital—Dodoma.

Majaliwa said the fund’s performance presented to him by PSSSF director general indicates low collections from members’ contributions, the trend, he said, weren’t impressive.

 The government restructured pension funds from five namely NSSF, GPF, LAPF, PPF and PSPF to two – NSSF and Public Sector Social Security Fund.

PSSSF was formed following the merger of the PPF, PSPF, Local Authorities Pension Fund (LAPF) and Government Employees Provident Fund (GEPF).

“We merged pension funds to make them perform much better…the management is responsible for ensuring enhanced collections from members of the merged funds including GEPF, PSPF, LAPF and PPF”, he noted.

PM Majaliwa insisted the PSSSF management to make sure it enrols new members as well as following up some of the previous members who joined from other pension funds.

“You should make sure that all the members of other merged pension funds continue to contribute to PSSSF”, he said urging them to conduct a review on the trend of members’ monthly contributions.

According to him, the review will help it to analyze factors contributing to decreased collections thus planning how to improve it.

Earlier when presenting the fund’s performance report from August 2018 to March 31st 2019, PSSSF Director General, Hosea Kashimba said they main responsibilities are to collect monthly contributions, register new members, investments and paying pension benefits to retirees.

Kashimba informed the Premier that after the funds were merged, PSSSF has continued to register new members whereby it has brought on board a total of 7,575 new members until March 2019.

He said that previously the fund had a total of 962,871 members, among them 279,564 were from the private sector, and have already been transferred to NSSF.

He said until March 2019, the fund had a total of 750,943 members who are public servants including 67,636 who joined from NSSF after the merging exercise.

 According to Kashimba, PSSSF collected 928.31bn/- equivalent to 88.62 percent of its target to collect 1.05trn/- in between August 2018 and March 2019.

He said the funds has paid pension benefits amounting 1.65trn/- to retired members from August 2018 to March this year. He said that PSSSF has 839 employees, of which 470 are men and 369 women.

The meeting was attended by Jenista Mhagama, Minister of State in the Prime Minister’s Office responsible for Policy, Parliamentary Affairs, Labour, Employment, Youth and Disabled.

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