DAR ES SALAAM: THE Public Service Social Security Fund (PSSSF) has started implementing the government’s directive to issue monthly pension payments for retirees through an improved calculation method.
Speaking in Dar es Salaam on during a capacity-building seminar for prospective retirees contributing to PSSSF, the Minister for State in the Prime Minister’s Office (Labour, Youth, Employment and Persons with Disability), Ridhiwani Kikwete, announced the development. “The sixth-phase government under Dr Samia Suluhu Hassan has heard the retirees’ concerns.
I am pleased to announce that as of yesterday (November 19, 2024), a total of 10,414 retirees who retired from July 2022 onwards have started receiving payments using the new calculation method. This effort is ongoing,” Mr Kikwete said.
He added, “Additionally, 2,479 new retirees who retired from July 2024 have already been paid under the improved calculation method.
The process is ongoing to ensure all qualified pensioners benefit from this change.” Among the approved enhancements, effective January 2025, Mr Kikwete noted that retirees currently receiving the minimum monthly pension of 100,000/- will see an increase to 150,000/- . Those receiving pensions above 150,000/- will also benefit from a 2 per cent increment.
The Minister also highlighted additional benefits aimed at improving the welfare of retirees and their families. Under the updated provisions, retirees under the PSSSF will receive a funeral grant of 500,000/- to assist with funeral expenses.
Furthermore, dependents of deceased retirees will be entitled to a lump sum payment equivalent to 36 months of the retiree’s monthly pension, as stipulated in the Fund’s regulations.
“This procedure, initially introduced in July 2022 for retirees paid under the new calculation method, is now being extended to include those under the old methods from merged funds,” Mr Kikwete explained.
He also assured retirees of the Fund’s growing financial sustainability, with its sustainability rate improving from 22 per cent to 36.4 per cent.
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Earlier, PSSSF Director General Abdul-Razaq Badru underscored the significance of preparing retirees for life after service. He noted that since its establishment, the Fund has paid out 10.46tri/- to 310,458 beneficiaries.
“With such a significant amount disbursed in just six years, it highlights the need for a special training program for members expected to retire within the next two years.
The training will focus on investments in small and medium industries, financial markets, agribusiness, and entrepreneurship,” Mr Badru said.
The seminar underscored the government’s commitment to improving retirees’ livelihoods while maintaining the Fund’s longterm sustainability.
