Social Security in Tanzania What are good practices related to contributory Schemes THE NATIONAL POVERTY POLICY WEEK 25 TH -27 TH November 2013; DSM By:

The protection measures which society provides for its members-through a series of public measures against economic and social distress-caused by stoppages or substantial reduction of earnings-resulting from sickness, maternity, employment injury, unemployment, disability, old age, death, provision of medical subsidies for families with children.

Social Security in TanzaniaWhat are good practices related to contributory

Schemes

THE NATIONAL POVERTY POLICY WEEK25TH -27TH November 2013; DSM

By: Irene Isaka, DG-SSRA

Irene C. Isaka, Director

General

The protection measures which society provides for its members-through a series of public measures against economic and social distress-caused by stoppages or substantial reduction of earnings-resulting from sickness, maternity, employment injury, unemployment, disability, old age, death, provision of medical subsidies for families with children.

Definition

Protection measures provided by society against economic and social distress caused by stoppages or substantial reduction of earnings resulting from

sickness, maternity, employment injury, unemployment, disability, old age, or

death.

Social Security

3

Social Security

Collective measures/activities

Designed to ensure members of society meets

their basic needs

Maintain a standard of living consistent with social norms

Protected from contingencies

Framework

The protection measures which society provides for its members-through a series of public measures against economic and social distress-caused by stoppages or substantial reduction of earnings-resulting from sickness, maternity, employment injury, unemployment, disability, old age, death, provision of medical subsidies for families with children.

Tier one: Universal, Social Assistance Schemes – funded by tax payers

Tier two: Mandatory Social Security Schemes – mandatory

deductions from salaries

Tier three: Supplementary Social Security Schemes –

voluntary contributions from members

THE FRAMEWORK

Prepared by Irene Isaka

NHIF

GEPFPPFLAPF

PSPF

NSSF

MoH MLE MoFPMO-RALG

SSRA

Coverage = 1,674,932 of 19,783,648 = 8%

Social security coverage formal schemes

7

BENEFIT STRUCTURE

Schemes 'Benefits

Death gratuity

Gratuity

Maternity

Education

Employment injuryOld age

Survivors benefits

Health care

Invalidity

Contribution 1.6 Trl

Membership 1.8mln

Benefits 1.06 Trl

The protection measures which society provides for its members-through a series of public measures against economic and social distress-caused by stoppages or substantial reduction of earnings-resulting from sickness, maternity, employment injury, unemployment, disability, old age, death, provision of medical subsidies for families with children.

Pensioners 87,000

Investments 4.9 Trl

Assets 6.4 Trl

63%

18%

20%

SOCIAL SECURITY SCHEMES INVESTMENTS PORTFOLIO

Fixed Income Assets Equity Properties

Recent Initiatives in Regulatory framework

Adoption of the National Social

Security Policy, 2003 Enactm

ent of th

e Social

Security

(Regulatory

Authority) A

ct, N

o.8, of

2008

Establishment of the Social Security Regulatory Authority; 2010

The protection measures which society provides for its members-through a series of public measures against economic and social distress-caused by stoppages or substantial reduction of earnings-resulting from sickness, maternity, employment injury, unemployment, disability, old age, death, provision of medical subsidies for families with children.

Gorvernance

Structure

Governance structure

Board Chairman

2 representative from Employers organization and 2 representative from the most employees organization

One representative from the Public with sss knowledge

Labour Commissioner and a representative of the Attorney General

The Treasury Registrar

GOVERNANCE HIGH LEVEL MANDATORY SCHEMES

Ministry responsible for Social Security

SSRA

Scheme trustees

Scheme management

Ministry responsible for

scheme

Registration, Issuance of guidelines, inspection& supervision

Translation of legislation, strategic planning, approval of internal policies

Implementation of policies, guidelines and strategic plan

Appointment of trustees, performance oversight

Legislation, policy formulation, issuance of regulations and orders

The protection measures which society provides for its members-through a series of public measures against economic and social distress-caused by stoppages or substantial reduction of earnings-resulting from sickness, maternity, employment injury, unemployment, disability, old age, death, provision of medical subsidies for families with children.

Limited coverage

Inadequacy

Fragmented benefits

CHALLENGES

Limited coverage

•Low level of understanding on social security matters

•Only 6% of workforce is covered •Informal sector not much considered

Difference in

benefit formula• Each Scheme employs

its own formula as per their established Act

Inadequate benefit

•Indexation•Low level of income

Enabling Legislative Frameworks

Customised Products And Delivery Channels

Using Appropriate Technologies

OVERCOMING CHALLENGES OF ENFORCEMENT

TO IMPROVE THE ACCESSIBILITY AND ATTRACTIVENESS OF SOCIAL SECURITY TO MIDDLE AND LOW INCOME

INITIATIVES TO IMPROVE LIVELIHOOD

INITIATIVES – financial literacy

Create awareness by promoting of financial education/literacy.

Promote consumer protection;Promote inclusive finance.

Expanding rural financial services directly through banks, insurance, social security, capital markets and indirectly through

SACCOS, VSLAs and VICOBAs;Ensure interest rates structure that encourage financial saving

and borrowing;

Promoting of remote access financial services especially through mobile phones (M-Pesa, Z-Pesa and Tigo Pesa), agency banking, branchless

banking, Point of Sale devises (POS);Support product innovation, Ensure interest rates structure that encourage

financial savings and borrowing;

INITIATIVES TO IMPROVE LIVELIHOOD

Enrollment:- E- registration to short code with mobile phone- Auto Enrollment with purchase of other products using mobile

phone registration.

Receiving Contributions;- Mobile money payments

Paying of benefits:- Initiating claim through mobile phone and payment through the

mobile money

Administration of scheme:- Public cloud: integrate mobile with online database?

CUSTOMISED DELIVERY CHANNELS;- Use popular channels – mobile money – see statistics below for Tanzania

ENABLING TECHNOLOGIES

Technologies in use

CUSTOMISED DELIVERY CHANNELS

SPECIALISED PRODUCTS

SPECIALISED SCHEMES

ENCOURAGING ENROLLMENT

How to encourage enrollment

NEW LEGISLATION

JOINT PROGRAMMES

AUTO ENROLLMENT

Poverty Reduction

Benefits adequacy•shares the benefits of economic growth.•Makes any economic reform programme more pro-poor.•Increases the likelihood of success of the reforms.•Improve nutrition health, and education outcomes.•Protects people from shocks and directly supports well-being.•Protects assets.•Enables economy to better with stand shocks.•Provide economic automatic stabilizer.•Strengthens bond between state and people.

Social security

adequacy

Human Capital

Livelihood

Risk ManagementEconomic Resilience

Social Cohesion

Economic reform

Multi-dimensional impact of social security benefits adequacy

The protection measures which society provides for its members-through a series of public measures against economic and social distress-caused by stoppages or substantial reduction of earnings-resulting from sickness, maternity, employment injury, unemployment, disability, old age, death, provision of medical subsidies for families with children.

Future Direction

ASANTENI SANA

www.ssra.go.tz

2nd Floor Alpha house, Bagamoyo road

Tel: 022 [email protected]