Africa-Press – Tanzania. RETIREES in the public service could now heave a sigh of relief after the government yesterday signed a Treasury Bonds agreement to provide about 4.66tri/- to the Public Service Social Security Fund (PSSSF) for paying retirement benefits as well as increasing investment capital on PSSSF assets.
To begin with, the government will provide a non-Cash Bond to PSSSF of 2.17tri/- of between eight and 25 years during the first phase that will enable the public pension fund to earn income from Treasury Bonds amounting to 120bn/- per year, according to Permanent Secretary (PS) in the Ministry of Finance and Planning, Mr Emmanuel Tutuba.
The agreement was signed between the ministry’s PS and PSSSF Director General, Hosea Kashimba at an event held at Dodoma’s Treasury Square and attended by senior government officials.
Speaking after putting pen to paper, Mr Tutuba said the new development was complimenting President Samia Suluhu Hassan’s pledge to retirees that they be paid their retirement packages immediately after leaving offices and start receiving their monthly pensions a month later.
“Even when presenting the 2021/22 national budget, the Minister for Finance and Planning, Dr Mwigulu Nchemba underscored the need for patriotist Tanzanians who had devoted themselves to their nation to receive their golden handshake immediately after retirement,” he insisted.
This is why, according to Mr Tutuba, Dr Nchemba pledged to continue paying all accumulated debts in pension funds by allocating budget as well as providing treasury bonds.
The PS said it was the expectation of his ministry to see the Non-Cash Bond agreement helping in paying retirement benefits and monthly pension to senior citizens who need a better life after retiring from the public service.
“The aim of the government is to continue paying timely monthly pensions to our retirees and whenever funds are allocated in investment projects PSSSF should focus on viable projects that will increase the value chain in the fund,” he said.
On PSSSF’s accumulated debts that it owes the government as of now, already the government had disbursed 500bn/- out of 724bn/- that have so far been verified by the ministry.
Earlier, the PSSF Director General said the 2.17tri/- Noncash Bond will enable the pension fund to have a reprieve in the pre-1999 liability which was haunting the former.
Prior to the establishment of the Public Service Retirement Benefits Act in 1999, public servants were not being deducted money from their salaries to contribute to the pension funds, therefore after retirement their retirement packages and monthly pensions had been accumulated in debts forcing the government to use contributions of post-1999 members to sort the retirees, something which accumulated debts.
He said PSSSF continued paying retirees their monthly pensions every 25 of each month, adding that the government was ensuring that they are living a comfortable life upon retirement.
“We will make sure that every money we receive is directed to the targeted areas including investment in order to increase value and liquidity in PSSSF, and making sure that we pay retirement packages to those who are eligible to receive pay,” he added.
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