Social Security Coverage- Tanzania

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THE UNITED REPUBLIC OF TANZANIA

THE NATIONAL SOCIAL SECURITY POLICY

MINISTRY OF LABOUR, YOUTH DEVELOPMENT AND SPORTS

JANUARY 2003

TABLE CONTENTS
Social Security Policy Glossary…………………………………………………… Foreword ………………………………………………………………………………… CHAPTER I 1.0 1.1 1.2 INTRODUCTION……………………………………………….. Background……………………………………………………………………. The Concept of Social Security…………………………………………. CHAPTER II 2.0 2.1 2.2 2.3 2.4 2.5 2.6 SITUATION ANALYSIS OF SOCIAL SECURITY SYSTEM IN TANZANIA………………………………………………………… Objectives of Social Security Services ………………………………… Informal Social Security Systems……………………………………….. Formal Social Security System…………………………………………… The Impact of Social Security System in Tanzania……………….. Challenges In The social Security System……………………………. Rationale For A Social Security Policy ………………………………… CHAPTER III 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 POLICY ISSUES AND STATEMENTS………………………………. 13 Policy Issue: The Structure of Social Security Sector……………… Policy Issue: Coverage…………………………………………… ………….. Policy Issue: Social Security as a right………………………………….. Policy Issue: Inadequacy of Benefits offered……………………….. Policy Issues: Portability of Social Security Benefits……………….. Policy Issue: Lack of Co-ordination and Harmonization…………… Policy Issue: Reciprocal Agreements for Transfer of Benefits…… Policy Issue: Partial Withdrawal of Benefits………………………… i 13 - 14 14 - 15 15 16 16 17 16 - 17 17 - 18 4 4-5 5 6-7 7-9 9 - 11 11-12 1 1 2-3 PAGE I - ii iii

3.9 3.10 3.11 3.12 3.13 3.14 3.15

Policy Issue: Financing of Social Security Services…………………. Policy Issue: Guaranteeing of Mandatory Schemes……………….. Policy Issue: Tax Exemption of Contributions, Investment Income and Benefits……………………………………………………………… Policy Issue: Investment of Social Security Funds…………………….. Policy Issue: Good Governance………………………………………………..

17 - 18 18 - 19 19 19 - 20 20

Policy Issue: Legal Framework and minimum standards …………….. 20 Policy Issue: Liberalization of social security sector……………………… 21 CHAPTER IV

4.0 4.1 4.2 4.3 4.4 4.5 4.6

THE ROLES OF STAKEHOLDERS…………………………………… 22 The Government ……………………………………………………………………. 22 Social Security Institutions……………………………………………………….. 22 Employers………………………………………………………………………………. 22 Workers’ Unions………………………………………………………………………. 22 NGOs/CBOs…………………………………………………………………………….. 23 Communities…………………………………………………………………… ……… 23

ii

SOCIAL SECURITY POLICY – GLOSSARY
1. ILO Minimum Standards. International Labour Organisation set an instrument which was adopted at its 35th session in June 1952, popularly known as ‘Social Security (minimum Standards) Convention No. 102. Itemised number of contingencies and benefits required in the minimum standards convention include’ Old Age, Invalidity, Survivorship, Employment Injury, maternity, medical Care, sickness, Unemployment and Death. Indexation of Benefits: It is an adjustment of pensions and other cash benefits to take account of price movements and protection against inflation to the beneficiaries. Indexes may include prevailing statutory minimum wages, yearly average earnings of the contributors e.t.c. Portability of Benefits: This is a system which ensures that members accrued benefits are not lost by a member changing employer, changing employment from one sector to another or by migrating from one country to another. The system ensures continuity of benefit rights accrued. Means-tested Basis: It is the basis of provision and adjustment of social assistance benefits by the government depending on a person’s means of living. The most considered group of people for the provision of social assistance benefits by meanstesting include, elderly, sick, invalids (disabled), survivors, unemployed. Normally these groups of people fall out of contributory schemes. In other words assistance is provided to citizens according to their inability to meet basic needs for survival, or defending themselves against natural calamities. Three- Tier System: According to ILO framework,...
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