DAR ES SALAAM THE Public Social Security Service Fund (PSSSF) envisions to accumulate pension fund value of around 10tri/ from the present 8.07tri/-, a move aimed at realising its goals outlined in the scheme’s second corporate plan being implemented within five years.
PSSSF Director General, Mr Hosea Kashimba disclosed this during a meeting held in Dar es Salaam, yesterday with members of the Tanzania Editors Forum (TEF).
“Currently the value of the pension fund had increased by 27.76 per cent from 5.83tri/- (2018) to 8.07tri/- in 2023, increasing at an average of 6.72 per cent per annum…our goal is to arrive at value of 10tri/- as highlighted in PSSSF second corporate plan of 2022/2023 to 2026/2027.
“This five-year strategic plan sets out the vision, the liability, the core values and the specific goals,” said Mr Kashimba.
Among the outlined goals include executing better customer service, financial stability, excellence in performance, policy requirements on corruptions and disease prevention like HIV/AIDS and non-communicable diseases.
He said that in the execution of its role, so far, the fund was able to pay a claim of 1.03 trillion inherited as a result of merged funds to 10, 273 members and dependents who were in the long queue waiting to be paid.
According to him the claims were payable within two years, with the fund continuing to pay new claims in five years, where until June 2023 the Fund has paid 8.88tri/- to 262,095 beneficiaries.
In line with this, he said PSSSF has been able to protect and increase the value of investments from 6.40tri/- to 7.92tri/- in June 2023, this being an increase of 23.5 per cent, which is an average increase of four per cent per year.
Such investment comprises government bonds (60 per cent), investment in large buildings (15 per cent), company shares (12 per cent), fixed deposits (7 per cent) and 6 per cent for other areas.
Besides, the fund has reduced operating costs from an average of 12 per cent to 5 per cent of the contributions collected per year, which is below the 10 per cent limit allowed by the country’s social security guidelines.
The DG noted that the fund has successfully registered a total of 140,162 new members from cadres including health, education, public institutions and entities of which the government owns 30 per cent shares.
Likewise, PSSF has managed to successfully settle a monthly pension, an average of 67bn/- pay retirees every month, this is a 100 per cent increase compared to the average amount of 34bn/- which was paid at the time of its establishment.
The DG, however, revealed that the fund has also reduced the waiting time for benefits to be paid to retirees, where the fund now pays within 60 days in accordance with the law and improved customer service using IT systems which were invented, developed and operated by local professionals for 90 per cent of all transactions.
“The Fund is also acting in accordance with the laws, procedures and guidelines of the government as a review of all calculations and procurements, where it has obtained clean fund inventory sheets throughout its lifetime.
“PSSSF has received awards for preparation and presentation of the best calculations by the National Board of Accountants and Auditors (NBAA) for two consecutive years 2020/2021 and 2021/2022,” he noted.
Among other achievements recorded by the fund, he said that the fund has successfully paid over 35bn/- to 13,000 workers who were suspended from work due to fake certificates. Such follows President Samia Suluhu Hassan’s directive, indicating that the process was still ongoing for others who are yet to be paid.
“He extended appreciation to President Samia for her courage to pay the 4.6 tri/- of the members of the pre-1999 PSPF Fund. This decision has enabled the fund to be paid 2.17 tri/- through special bonds.
“Besides the government has also paid PSSF 500bn/- out of 731 .4bn/- accounting for loans to implement various projects including construction of Parliament building, Hombolo Government College, Nelson Mandela Institute of Science and Technology and the University of Dodoma, this is all part of the fund’s investment,” stated the DG.
He added: “The issue of paying off the government’s debt in the fund, especially that of pre-1999 contributions, took a long time, almost 20 years, however, through the strong leadership of the Sixth Phase Government, this has been achieved.”