OVER VIEW OF SOCIAL SECURITY PENSION Social Protection Social Security

Operating Principle General situation analysis coverage Social security as Human Right

PENSION FUND/SCHEME Meaning of Pension Fund Existing Schemes in the Country Challenges of the Social Security System

Social Protection Social Protection describes traditional family community support structures and interventions by state and non-state actors that support individuals, households and communities to prevent, manage and overcome the risks threatening their present and future security and well being, and to embrace opportunities for their development and for social and economic progress in Tanzania. Social Security concept Social security means any kind of collective measures or activities designed to ensure that members of society meet their basic needs and are protected from the contingencies to enable them maintain a standard of living consistent with social norms.

These contingencies include:Sickness Employment injury Old age Maternity Death

The major domains of Social security are:Poverty Prevention Poverty Alleviation Social compensation and Income distribution

However, Social Security in Tanzania has the following Elements:Social assistance Mandatory Schemes Private savings.

PRINCIPLES OF SECURITY of which Tanzania a formal social security systems is organized on:1. Social Insurance Example PPF (Parastatal Pension Fund)

NSSF (National Social Security Fund), PPF (Parastatal Pension Fund), PSPF (Public Service Pension Fund), NHIF (National Health Insurance Fund). 2. Public Support. Example Public Health Services in Tanzania. 3. Social assistance. Example benefits to people affected by social risks Eg. Earth quick in Rungwe. 4. Principle of obliging an employer to grant security Eg. Incase of continuation of wage payment due to illness. 5. Principle of compulsory saving. Basis of provident Funds. Note: Most people in Tanzania are faced with in security caused by chronic or structural poverty. This insecurity arises mainly from insufficient economic

development. But the removal of chronic social insecurity faced by the poor does not remove the social insecurity associated with risks emanating from conventional contingencies such as loss of employment, disability, old age and death. GENERAL SITUATION ANALYSIS OF THE COVERAGE The estimated total population of Tanzania is 33-5 million. Out of this 70% are in rural areas, while the rest is urban areas. The total labour force of Tanzania is estimated at 16 million, where 5.4% of the total labour force or 2.7% of the total population is covered by mandatory formal social security system. 93% of the capable workforce is engaged in the informal sector in both rural and urban areas, out of that 80% is engaged in the agrarian economy.

SOCIAL SECURITY IS THE HUMAN RIGHT According to Article 22 of the Universal Declaration of Human Right 10 th Dec, 1948, social protection is a right issue. Likewise, Africa 11(1) of the constitution of the united Republic of Tanzania stipulates that:-

The state authority shall make appropriate provision for the realization of a persons right to work, to self education and social welfare at times of old age, sickness or disability and other cases of incapacity PENSION FUNDS/SCHEMES Meaning According to OEDS taxonomy, a pension fund is an independent and special purpose legal entity with the contractual responsibility to manage the institution on behalf of the fund members. The funds assets are pooled together with the exclusive purpose of financing pension plan benefits. The fund members have a legal or beneficial right or some other contractual claim against the assets of the pension fund.

Payment

Operation

Investment

Collection

Existing pension schemes include NSSF PPF PSPF

SHORROMING/ FACING SOCIAL SECURITY SYSTEM Limited coverage Inadequacy of Benefit paid Fragmentation and lack of coordination Lack of mechanism for portability of benefit right Social security benefit Investment of social security funds

CONCLUSION - REMARK Social security system has to undergo reform to address its operational and institutional capacity. An overlook of informal sector to the system.