Local News

Tucta for pension law repeal

General Secretary, Mr Nicholous Mgaya

THE Trade Union Congress of Tanzania (TUCTA) has threatened to take legal action if the clause in the new pensions' law denying workers to withdraw their pension savings before reaching statutory retirement age of 55 years is not urgently repelled.

The union said in a statement that the clause was vague in the original Social Security Regulatory Authority (SSRA) law hence union leaders do not see the dangers of allowing retrenched or terminated employees access to their savings before reaching the retirement age.

"This clause is not clear in the bill which sought to amend the SSRA Act as explained by the authority after this law was passed. The only clause of the bill which referred to gratuity was 107 which proposed that such payments should stop for PPF members only," the statement said.

While questioning SSRA's sincerity in restricting members to get gratuity at will, TUCTA argued that jobs are becoming increasingly scarce while life expectancy has fallen to 47 years from above 70 years over three decades ago. "TUCTA will not hesitate to take industrial action should SSRA continue to be adamant on the urgent need to review the controversial clause which restricts withdrawal of benefits before members attain 55 years," the statement said.

TUCTA joins Legal and Human Rights Center (LHRC) which has already issued a notice to go to court and contest the controversial law which has already caused commotion in parliament and among workers especially in mines where protests are rife. The 2012 SSRA Act which was enacted by parliament last April was assented by President Jakaya Kikwete over a month ago and is now awaiting regulations to start operating.

SSRA Director General, Irene Isaka has said her institution will sensitize the public on the new law and allay fears of denying members access to their contributions till reaching the statutory retirement age of 55 years.