MPs push for monthly pension review

DODOMA: THE National Assembly has directed the Public Service Social Security Fund (PSSSF) to fast-track carrying out an actuarial valuation of the scheme in order to decide on the possibility of increasing retirees’ monthly pension.

The august House also advised the government to merge the economic empowerment funds to enhance their efficiency.

Tabling a report on activities undertaken by the Social Welfare and Development Committee in 2023, Committee Chairperson, Ms Fatma Toufiq also called upon the National Social Security Fund (NSSF) to take action against dishonest employers who present false workers’ information so that they can pay less monthly remittance.

The committee’ advice follows a long-term demand of retirees that calls for increasing monthly pension to match with the current life needs.

“PSSSF must fast track the actuarial valuation of the scheme for the government to decide whether to increase the monthly pension, which is a long-time demand from the pensioners,” she insisted.

She said when the committee met with relevant authorities, the committee was informed that the government was in the final stages of the actuarial valuation of PSSSF, expressing optimism that the process would be completed on time for decision making.

The committee also commended President Dr Samia Suluhu Hassan for paying 2.17tri/- non-Cash Bond to liquidate the government debt of 4.6tri/-.

The debt of 4.6tri/- to the PSSSF was inherited from the former social schemes which were PPF, GEPF, LAPF and PSPF which were merged to form the social security scheme. The committee urged the government to pay the remaining 2.45tri/- to PSSSF to enhance its performance.

The Committee also advised the government to merge the economic empowerment funds since most of them do not match with the desired goals. Instead, they told the government to carry out an assessment of the funds so that they can bring impact especially to youths and women and the disabled.

The government has not disbursed a sum of 18bn/- for the past two financial years that was intended to be paid in soft loans to small and medium entrepreneurs (SMEs) for them to establish new businesses.

The failure to disburse the funds is attributed to scattered economic empowerment schemes alongside poor coordination between the Ministry of Community Development, Gender, Women and Special Groups and the Ministry of Finance.

She called upon the government to merge special groups’ economic empowerment funds for entrepreneurs, women, youths and the disabled for them to be monitored properly.

She asserted that as of January this year, a total of 18.5bn/- that was approved by the National Assembly to be allocated to SMEs for soft loans to entrepreneurs had not yet been remitted. The chairperson said the committee advised the government to speed up issuance of SMEs with digital identification cards for them to easily access soft loans.

Giving an example on the delays in disbursing funds to the empowerment funds she said the Youth Development Fund was supposed to receive 3bn/- in the past three financial years but had, as of January this year, received 1bn/- only.

However, another 1bn/- for empowering people with disabilities was supposed to be issued in the current financial year but it has not been remitted to -date.

The Committee had also learnt that the skills development programme has been facing financial challenges that have negatively impacted youth enrolment as allocation of funds for its implementation dropped to 9bn/- in the current financial year from 18bn- in 2019/2020.

Nominated MP Ms Riziki Lulida, argued that merging of the economic empowerment funds will enhance transparency and accountability.