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.
