Dr Dau told the Parliamentary Public Organizations Accounts Committee (POAC) in Dar es Salaam that withdrawal benefit is not a bad thing for pension funds, though there isn’t any international pressing for its presence. “Withdrawal benefit is not even there in the East African region.
One thing to note is that it’s the member of the pension fund who will suffer at retirement and not the pension fund,” he said. The National Social Security Act that was amended in April, this year, has come under criticisms barring the withdrawal benefits for workers before retirement age.
He explained further that re-introduction of the benefit will reduce the burden of timeconsuming computation process for retirees. Dr Dau boasted that NSSF’s financial position was sound to enable it survive for the next 50 years, whereas it could run without a problem for the next six years.
He told the parliamentary committee led by Kigoma North MP, Mr Zitto Kabwe, that revenues for the pension fund had during the current financial year increased by 18 per cent. In another development, it came to light yesterday that the government is ready to pay 230bn/- it owes the NSSF.
The money was used in construction of University of Dodoma (UDOM). Dr Dau said the Attorney General (AG) had ordered the government to pay NSSF following a legal battle on whether or not NSSF deserved the money. It came to light during the meeting that NSSF had not been paid the money since 2008 when construction of the ultra-modern varsity was completed.