Govt assessing PSSSF, NSSF to add member benefits, fund sustainability

By Augusta Njoji , The Guardian
Published at 06:00 AM Oct 31 2024
Patrobas Katambi, Deputy Minister in the Prime Minister's Office for Labour, Youth, and Employment
Photo: Guardian Correspondent
Patrobas Katambi, Deputy Minister in the Prime Minister's Office for Labour, Youth, and Employment

THE government is currently assessing Public Service Social Security Fund (PSSSF) and National Social Security Fund (NSSF) to improve benefits while ensuring their sustainability.

Patrobas Katambi, Deputy Minister in the Prime Minister's Office for Labour, Youth, and Employment, made the remarks in the Parliament yesterday when responding to a question by Ngara MP Ndaisaba Ruhoro (CCM).

In the basic question, Ruhoro inquired about the government's strategy to increase pension levels for retirees in the country.

In response, Katambi stated that increases in pension amounts for retirees occur following assessment of the funds' sustainability as outlined in Section 57 of the PSSSF Act and Section 71 of the NSSF Act.

“The assessment takes place every three years or whenever an evaluation is deemed necessary. Currently, the government is conducting assessments as directed by the relevant laws,” he said.

He assured retirees that the government will continue to conduct assessments aimed at improving benefits while considering the funds' sustainability and in accordance with the applicable laws.

In a follow-up question, he noted the rising cost of living and mentioned that some retirees receive pensions below 150,000/-, which is insufficient to cover their expenses. He asked: “Why isn’t the established minimum government wage also set as the minimum pension for retirees receiving low pensions?”

He also questioned whether the government sees the need to conduct assessment annually instead of every three years.

In response, Katambi explained that existing professional accounting procedures guide social security funds to conduct assessments every three years due to economic considerations.