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]
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