Govt allocates over 270bn/- to settle retirees’ outstanding claims

DODOMA: MORE than 207bn/- has been set aside in 2024/25 by the government to settle outstanding claims for retirees, Legislators were told yesterday.

Deputy Minister of State in the President’s Office (Public Service Management and Good Governance), Deus Sangu, urged all employers to submit information regarding retirees with pending financial claims for further procedures.

He said that timely submission would enable the Treasury to process and disburse the payments without delay.

Mr Sangu was responding to a supplementary question from Special Seats MP Rita Kabati (CCM) who inquired about the government’s actions against employers delaying payments to civil servants who were promoted but later retired.

“The government is committed to addressing this issue, so far approximately 2.7bn/- had already been disbursed to 1,200 affected individuals during the 2024/25 financial year,” he said.

In her basic question, Nyasa MP Stella Manyanya sought clarification on the payment timeline for retirees whose promotions were subsequently halted.

ALSO READ: Govt hands over 5bn/- groundwater equipment

Responding, Mr Sangu acknowledged that the matter involved employees whose promotions had been entered into the payroll system before their suspension in June 2016 for verification.

He said that some of these individuals had retired before promotions were reinstated in November 2017. Mr Sangu assured the House that these retirees would receive their salary arrears from their promotion dates up to their retirement.

According to the Deputy Minister, the payments are being processed through the retirees’ former employers.

Moreover, in a supplementary question, MP Kabati also raised the issue of individuals who retired a long time ago but are still awaiting their return travel expenses.

In response, Mr Sangu said that institutions are required to finalise the payments by the end of the current financial year, as mandated by existing regulations.

Special Seats MP Esther Matiko, in her supplementary question, pressed the government on its plans to ensure timely payments for new retirees, particularly those from the Prisons service.

In response, Mr Sangu reiterated that the matter was being actively addressed, as evidenced by the 207bn/- set aside.

He added that discussions with the Ministry of Home Affairs would be held to improve the process of compiling claims and ensure that payments are made promptly.

Responding to a supplementary question from Special Seats MP Ester Bulaya regarding directives for local authorities to pay retirees on time, Mr Sangu referenced a circular issued on April 30, 2025.

This directive, he explained, instructs all employing authorities to treat retirement payments as a priority, emphasising that retirement is a foreseeable event and that these instructions must be followed accordingly.