The government has already started paying the Public Service Pensions Fund’s (PSPF) by injecting more than half of its commitment to pay 50bn/- this financial year.
Public Service Pension Fund (PSPF)
In May, President Jakaya Kikwete had promised to start paying the fund at least 50bn/- annually, as part of efforts to reduce its deficit of 6.54tri/-. The PSPF Communications, Marketing and Outreach Officer, Ms Hawa Kikeke assured the fund’s members that the government was on track in making sure that it meets its commitment.
Ms Kikeke also said that the fund has many other of income generation including investments and members’ contributions that keep it financially stable. PSPF had incurred the deficit after it started paying members following a five year grace period after it was established in 1999.
“The problem is that we had inherited some 200,000 individuals most of whom were paid off after reaching retirement age but had not contributed to the fund throughout their working life,” she said.
She said that when the fund was established it was supposed to be given seed money but that was not to be but they still had to pay members from the finances that were in the fund.
As for the fund’s participation in the Agriculture Exhibition held here, Ms Kikeke said that their role is to educate people on the various services that the fund offers because many of their members are employed in the sector.
“People come here to submit their queries and make sure if their employers truly remit their contributions and we also educate them on the services on offer,” she noted. Among the services offered include information on inheritances, registration of new members and information on services offered to would be members who are not employed in the formal sector.
By KILASA MTAMBALIKE, Tanzania Daily News
