In accordance with the Social Security Regulatory Authority Act of 2008 (see entry 3956), the Tanzanian government officially inaugurated the Social Security Regulatory Authority in March 2011. The regulatory body is tasked with harmonizing the legal and regulatory framework governing the social security sector, particularly the six separate pension funds operating around the country. The social security sector has been characterized by a high degree of fragmentation of different schemes, low coverage levels and high administrative costs. The new regulatory authority aims to facilitate the extension of coverage to non-covered groups while also streamlining the rules and regulations governing administrative reporting structures, investment, and the transferability of rights from one fund to another, including through conducting public awareness campaigns for stakeholders.

Currently, six pension fund report to different government entities: the National Social Security Fund (NSSF) reports to the Ministry of Labour, Employment and Youth Development; three others (the Parastatal Pensions Fund, the Public Service Pension Fund and the Government Employees Provident Fund) report to the Ministry of Finance; the Local Authorities Pension Fund reports to the Regional Administrative body of the Prime Minister's Office; and the National Health Insurance Fund reports to the Ministry of Health and Social Welfare. Moreover, while contributions are uniform across pension funds (20 per cent), benefit packages and investment regulations can vary significantly. After conducting actuarial evaluations of all funds, the new regulatory authority will set guidelines for streamlining reporting procedures and structures, reducing risk (for example, through avoiding investments with a 100 per cent equity stake) and lowering administrative costs (currently estimated at approximately 12 per cent, high by international standards).

Source: "Tanzanian pension funds ordered to harmonise benefits", 28 March 2011, http://www.busiweek.com/11/news/tanzania/701-tz-pension-funds-ordered-to-harmonise-benefits ; "Regulator to improve social security authority", 2 January 2011, http://www.thecitizen.co.tz/business/13-local-business/6873-regulator-to-improve-social-security ; "Tanzania: Tasks of social security entity set in perspective", 20 February 2011, http://www.salan.org/news/tanzania-tasks-of-social-security-entity-set-in-perspective.

Reference: The Social Security (Regulatory Authority) Act, No. 8 of 6 June 2008.

Implementation date: 03.2011