Retirement formula: Unions, employers, fully involved


The leaders of the two organizations made this observation during a seminar for parliamentarians on the new pension regulations, an event organized by the Minister of State (Labour, Youth, Employment and Disabled Persons) of the Prime Minister’s Office, Prof Joyce Ndalichako.

Vice President Mussa Azzan Zungu opened the seminar, providing TUCTA President Tumaini Nyamhokya with a forum to dispel the inscrutable rumors that the organization has been sidelined from drafting the new regulations.

He urged the public to ignore the rumours, pointing out that the umbrella organization was involved in all stages of the deliberations. It would be unethical for him to say that the workers were not involved. “We participated fully,” he said.

In addition to being protected by law, social security funds are also subject to regulations set by the International Labor Organization (ILO) which compel labor leaders to actively demand that the funds be protected and ensured continuity. , did he declare.

“During the development of the new regulations, the voices of labor leaders were fully heard. They are the ones who asked for the lump sum payment of 33%,” he said.

Suzzane Ndomba, the Director General of ATE, supported this observation, noting that the process of drafting the new regulations which began on July 1, 2017 involved all stakeholders, namely ATE, TUCTA and the government.

Public statements that labor union leaders were not involved in the process of crafting the new pension payment formula for retirees are factually inaccurate, she said.

From the time the process of obtaining the formula was initiated, the stakeholders failed to agree, but from the middle of last year, the branches of the main stakeholders and select committees were fully involved at every stage of the development of the new regulations, she said. .

The new regulations were better than what had previously been decided and there was no reason to reject them, she argued, while the Deputy Speaker assured MPs that the process was participatory.

Stakeholders such as employers and workers; organizations agreed on the new pension regulations, he pointed out, calling on lawmakers to educate the public and specific constituencies on the new pension regulations.

Tabling the central budget estimate of $41.48 billion for the financial year 2022/2023, the Minister of Finance and Planning, Dr Mwigulu Nchemba, said the government had increased the lump sum pension to 33%, compared to 25% in 2018.

At that time, it was explained that the measure implemented the 2014 government regulations on pension benefits. This was after the merger of public sector employee pension funds with the Public Service Social Security Fund (PSSSF), causing an outcry.

Phase Five Chairman John Magufuli suspended use of new formula set at 25% lump sum payment, ordering pension funds except NSSF to revert to old payment formula for a period of five years. During this period, an acceptable payment system would be agreed between the funds, the workers’ unions and the government, the president had said.

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