Sunday 17 March 2013

Public Service Pensions Fund organises the 2nd Stakeholders' and Annual General Meeting in Dar es Salaam









THE PUBLIC SERVICE PENSIONS FUND (PSPF) held its 2nd Annual Stakeholders’ Meeting from 07th to 08th March 2013, at the JB Belmont Conference Centre located at 6th floor Parking Arcade, PSPF – Golden Jubilee Towers, in Dar es Salaam.
The objective of the meeting was to present PSPF performance report to stakeholders and share ideas on how to strengthen the Fund and also challenges facing the Fund and social security industry in general.
Officially opening the meeting, the Vice President Dr. Mohammed Gharib Bilal exorted the management of the Fund and the informal sectors in general to increase the number of  existing pensioners.
He says a major challenge facing the public pension funds was a small number of pensioners, which comprised 15 per cent of all employees.
“The government through Social Security Regulatory Authority (SSRA) should initiate a process to allow public pension funds to allow so that more members from informal sectors join the Fund to increase the scope of pensioners,” says the Vice President. 


On his part, the Chairman of PSPF Board members, Mr George Yambe, says the Fund was nearing completion of the phase I of the 641 houses project in five regions, saying the houses would be sold to the PSPF members.
"We have partnered with several banks to provide our members with loans to afford buying the houses,” he reveals.
He also points out that the profits had increased from 36.45 billion/- in 2000 to Tshs 1.09 trn as at 30th June, 2012.
This surplus came from contributions from members, investment income and others sources.
He says the Fund was in talks with the National Housing Corporation (NHC) in order to construct houses for the PSPF members.
According to him, the project would benefit members at the district levels hence overcome the problem better residence.     
Mr Adam Mayingu, who is the acting PSPF Director General, says the number of pensioners had increased by 59 per cent from 196,150 to 311,668 members between 1999 and June 2012.
However, he says the Fund faced a number of challenges including lack of education among employers and the employees on their responsibility to keep the records for the pensioners.
“This challenge has delayed payment of pensions to its members on time after retirement,” he points out.
PSPF was created by an Act of Parliament; the Public Service Retirement Benefits Act No. 2 of 1999 to replace the Pension
Ordinance Cap 371 of 1954.
The Fund was formed as an autonomous Public institution under the management of the Board of Trustees which became operational n July 1999.
It is a contributory pension scheme covering employees of the Central Government and its Executive Agencies, whose terms of employment are permanent and pensionable.
The management of the Fund is vested in the Board of Trustees and the day to day activities are under the Director General who is assisted by Directors and Managers.
“Our Vision is to be the provider of choice of social security services in the country,” says Adam Mayingu in an interview after the meeting.
The Fund’s mission is to provide competitive Social Security Services to its members using dedicated staff and appropriate technology, to provide services to its members and the general public while observing the following: accountability and responsibility; integrity and diligence;  creativity; promptness and responsiveness.
The scheme is run as a Defined Benefit (DB) pension and provides the following products for its members and their dependants:      
Retirement annuities, death benefits, disability benefits and other pension related benefits.
At the moment the Fund membership profile consists of about 35,000 live (contributing) members, 5,000 pensioners and some 18,000 dependants (spouses and children).
It is fully administered in-house and financed through employer and employee contributions of 15% and 5% of monthly salary respectively.
The Fund's gross reserves have seen significant growth over the years, reaching a level of about E 10.6 billion by March 2011 with a large proportion of income accruing from a diversified investment portfolio both in local and external markets.
The funding level decreased from the previous year's level resulting from the increased numbers of pensioners and dependants as well as the impairement of receivable contribuitons to reach 79.3%.
The PSPF is governed by an appointed Board of Trustees representing in equal proportion, the Employer and the Employees. With the chairman, 4 employer representatives, 5 employee (Member) representatives, the CEO (Ex-officio member).
Principal responsibilities and functions of the Board of Trustees of PSPF are to supervise the operations and management of the Fund, direct the financing and financial position of the Fund, decides on investments of the Fund's asset on the advice of the Investment committee.
The Fund is managed by an executive team headed by a Chief Executive who is appointed by the Minister in consultation with the Board.
The other managerial positions are appointed by the Board.
 Mr Mayingu says: “We intend to be a regional model for the provision of comprehensive social security services and to provide a portfolio of social security services to members in a sustainable, progressive and ethical manner.”
He says honesty that is working in sincerity, truthfulness, integrity and in the open are our major core values.
Our Fund believes in equality, which is to treat each colleague and customer fairly, impartially and equally without discriminating by gender, religion, age or individual’s social inclination and embracing strength in diversity.
Dealing fully above board in a responsible and open manner, assuming all liability and answerability for individual and collective actions and offering service of superior quality and value with a high degree of excellence, considered of worth by its recipients.
Adam Mayingu, the Acting Director General of the Public Servants Pensions Fund (PSPF).

Mr Mayingu is a seasoned IT specialist who has accumulated over 20 years wealth of experience working in the financial sector of both private and public sectors mainly in ICT, Knowledge Management, leadership and project management.
Adam Mayingu started his career in 1989 as Systems Analyst/Programmer for the National Bank of Commerce.
He later joined the Standard Chartered Bank in 1993 as the IT operations Officer.
In 1994, Mr Mayingu accepted employment in CRDB Bank as a Senior Systems Analyst, a position he held until 1997 when he joined the Tanzania Revenue Authority (TRA) as a Senior Business Analyst.
In 1998 Adam Mayingu rejoined the CRDB Bank as the Head of IS/ICT.
Adam Mayingu holds a Bsc Ed Hons (Computing Option) an MBA (majoring in IT), a PhD (Knowledge Management) and an Msc (Leadership).
He has undergone extensive short-term training and workshops on ICT, Management, Commercial Banking and Pensions Administration conducted both in Tanzania and abroad.

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