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: Irene Isaka, DG-SSRA Irene C. Isaka, Director General

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

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Framework 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 GEPF PPF LAPF PSPF NSSF MoH MLE MoF PMO- RALG SSRA

Coverage = 1,674,932 of 19,783,648 = 8% Social security coverage formal schemes

BENEFIT STRUCTURE Schemes 'Benefits Death gratuity Gratuity MaternityEducation Employment injury Old age Survivors benefits Health care Invalidity 7

Contribution 1.6 Trl Membership 1.8mln Benefits 1.06 Trl Pensioners 87,000 Investments 4.9 Trl Assets 6.4 Trl

Recent Initiatives in Regulatory framework Adoption of the National Social Security Policy, 2003 Enactment of the Social Security (Regulatory Authority) Act, No.8, of 2008 Establishment of the Social Security Regulatory Authority; 2010

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

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 Differenc e in benefit formula Each Scheme employs its own formula as per their established Act Inadequate benefit Indexation Low level of income

OVERCOMING CHALLENGES OF ENFORCEMENT TO IMPROVE THE ACCESSIBILIT Y AND ATTRACTIVENE SS 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

ENCOURAGING ENROLLMENT How to encourage enrollment

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 Social Cohesion Economic reform Multi-dimensional impact of social security benefits adequacy

Future Direction ASANTENI SANA 2 nd Floor Alpha house, Bagamoyo road Tel: