MINIMUM monthly pension is being raised from 100,000/- to 150,000/- starting January 2025, while the government raises lumpsum payments from 33 percent to 40 percent.

Ridhiwani Kikwete, the Labour, Youth, Employment and People with Disabilities state minister in the Prime Minister’s Office (PMO) said the revision applies for those who were previously receiving 50 percent lumpsum payments.

He made this while responding to Nicodemus Maganga (Mbogwe), who demanded the timeframe for the government to address the numerous complaints about the pension calculation formula affecting public servants.

The changes were made in the fiscal plan for 2022/23, with additional improvements introduced in the 2024/25 fiscal plan, with monthly pensions being increased by 2.0 percent in line with current laws and regulations, he said.

The government assesses the sustainability of pension funds every three years as required by law, to ensure ability to enhance benefits without compromising their long-term viability, he stated.

Rashid Shangazi (Mlalo), in a supplementary question, asked if the government was prepared to conduct a comprehensive review of pension funds' sustainability and living conditions of retirees.

The current pension of 150,000/- was still insufficient, he said, demanding if the government sees the need to assess the current condition of retirees.

The minister responded that regions and districts have been gathering data on individual retirees in their areas “and addressing concerns as they arise.”

Any retired public servants or employees with claims, including issues related to pension calculations, are welcome to submit them to his office for review and action, he said.

Sophia Mwakagenda (Special Seats-Chadema) in another supplementary question raised concerns about the adequacy of the current pension, demanding an increase from 150,000/- to 600,000/- “in light of the rising cost of living.”

The minister explained that pension payments are based on a variety of factors, including the state of the economy and the sustainability of pension funds.

The government will review the payments once it has built sufficient capacity, he added.