Government has announced that the indexation of the various pension funds in the country is complete and a report will be submitted to Cabinet for further action.
The Deputy Minister for Finance, Ms Saada Salum Mkuya.
Announcing the development in Parliament, the Deputy Minister for Finance and Economic Affairs, Ms Saada Mkuya said that a special team in collaboration with the Social Security Regulatory Authority (SSRA) is through with the exercise that will be made public in due course.
She said that findings from the exercise it will make it easy to determine what each pension fund is capable of paying taking into consideration a number of factors including actual cost of living and inflation.
The Deputy Minister was responding to a supplementary question following a main question from Mr Mohamed Misanga (Singida West-CCM) who wanted to know when the Parastatal Pensions Fund (PPF) last carried out an indexation for payment of members’ benefits.
According to Ms Mkuya PPF last reviewed their benefits in 2010. Mr Misanga wanted to know why PPF does not emulate other pension funds like the National Social Security Funds (NSSF) which pays out a minimum of 80,000/- monthly to members.
Mr Misanga attacked SSRA of failing to ensure that the pension funds pay out reasonable pension benefits to members. However, the Deputy Minister cautioned that indexation is only possible if the various pension funds actually make profits and not otherwise.
