The protection measures which society provides for its members-through a series of public measures against economic and social distress-caused by stoppages or substantial reduction of earnings-resulting from sickness, maternity, employment injury, unemployment, disability, old age, death, provision of medical subsidies for families with children.

Building Integrated Social Security/Protection in Tanzania

International Social Protection Conference, 15th – 17th December ,2014; Arusha

Irene C. Isaka, Director

General

Structure of the presentation

1. Adopted Definition of Social Protection2. Structure of Social Security System of Tanzania3. Intruments for implementation4. Extension Strategy5. Key Actors6. The role of Government, Stakeholders and

Public7. The way Forward

•The protection measures which society provides for its members, through a series of public programmes against economic and social insecurities that would otherwise be caused by the stoppages or substantial reduction of earnings resulting from sickness, maternity, employment injury, unemployment, disability, old age, death, the provision of medical care subsidies for families with children.

Definition of Social

Security /Protect

ion

Structure of Social Security in Tanzania (SSP 2003)

1

This constitutes provision of services such as primary health; primary education, water, food security and other services on a

means tested basis. These services are usually financed by

the government and Non Governmental Organisations

(NGOs.)

2

These are usually compulsory and contributory schemes financed by

both employer and employee during the working life for terminal

and short-term benefits.

3

The schemes under this tier include personal savings, co-operative and

credit societies, occupational pensions schemes and private

schemes; managed by employers, professional bodies, community based organizations and other private sector actors.

Building Sustainable Social Protection System

• Progressive realization of higher level of protection

Voluntary insurance

Mandatory social insurance/social security benefits of guaranteed levels for contributors

THE FLOOR: Four essential guarantees Access to essential health care for all

income security assistance income securitychildren unemployed and poor elderly and disabled

Guiding principles• Equality national and non

nationals men& women• Solidarity –individual right

to social security protection for all human beings

• Compulsory affiliation(compulsory vs voluntary coverage)

• General responsibility of the state derived from human nature of ss &democratic management-financing through contributions

Solidarity • Applies to financing

techniques irrespective of the approach (full, partial, pay-as-you go, taxation or combination of those).

• Collective financing is indispensable to ensure that the most vulnerable categories enjoy real access to social protection they require

Policy framework for adequate social security/protection for all–Universality – formal and informal sector

should be provided with an opportunity to participate in social security schemes –Progressiveness - provision of basic

benefit package should progressively be improved as national resources allows–Pluralism –Outcome focus

General government

User fees

Financing Mode;Financing principles with institutional implications

incomeLow High

Vertical Cross-

subsidy

Low

High General tax

Earmarked tax

Mandatory insurance

Private insurance

INCREASING willingness to pay

DEC

REAS

ING

w

illin

gnes

s to

pay

Public entity Regulated Private agent

Delivery mechanisms

Tier/pillar 1 Tier/pillar 2 Tier/pillar 3

Protection of members rights• Benefits and poverty protection as a right:

Entitlements to benefits should be specified in a precise manner so as to represent predictable rights of residents and/or contributors; - the role of SSRA in setting minimum benefit package

• Collective “actuarial equivalence” of contributions and benefit levels: The benefits to be received by scheme members should represent both a minimum benefit replacement rate and a minimum rate of return in case of savings schemes, which in turn must adequately reflect the overall level of the contributions paid; such minimum levels should be effectively guaranteed, preferably by the State.

Protection of members rights

• Sound financing: Schemes should be financed in such a manner as to ensure to the furthest extent possible their long-term financial viability and sustainability, having regard to the maintenance of adequate fiscal space for the national social security systems as a whole and individual schemes in particular.

• Responsibility for governance: The Government should remain the ultimate guarantor of social security rights, while the financiers/contributors and beneficiaries should participate in the governance of schemes and programmes.

Main Instruments to implement the Social Security policy in Tanzania

The National Social Protection Policies

– e.g. Social Security, Children, Elderly, Disability,

Health and Education Policy.

Instruments for Income Security is

mandated to Social Security

(Regulatory Authority) Act no 8

of 2008 as amended

Social Security/Protection Reform Program

With focus of Extending

Coverage to Non Covered

Populations

Extension for Social Security

Coverage Strategy and

Communication Strategy

Extension Strategy

Objective of the Strategy:

Extending social security provisions to reach all Tanzanians;Creating an environment where every Tanzanian will be able to access social security services;Increasing scope and adequacy of benefits that will be available; andIncreasing knowledge and general awareness of Tanzanians on the issues of social security including their rights and obligations

Key actorsGovernment Ministries including Local Government(PO, PMO, MoLE, MoF, MoHSW, PMORLAG and MoET)

Institutions, Departments, Schemes and Programmes (Social Walfare, TASAF, NSSF, PPF, CHF, NHIF, PSPF, LAPF and GEPF

Non Governmental Organisations Local and International

International Community and Development Partiners

Workers, employers and Beneficiaries

GOVERNANCE HIGH LEVEL

Ministry responsible for Social Security

SSRA

Scheme trustees

Scheme management

Ministry responsible for

scheme

Registration, Issuance of guidelines, inspection& supervision

Translation of legislation, strategic planning, approval of internal policies

Implementation of policies, guidelines and strategic plan

Appointment of trustees, performance oversight

Legislation, policy formulation, issuance of regulations and orders

The Role of Government

Policy

Primary responcibility to ensure access to

social security to all Citizens

Appropriate Policy, legal and institutional

FrameworkPolicy coherence with

other development policies

Consultation with Stakeholders

Financing

Ensuring the Financial, Fiscal and economic Sustainability

Appropriate Financing Mechanisms

Consultation with Stakeholders to ensure

economic and social adequacy in public and

private schemes

Governance

Monitoring and Evaluating the

System

Work closely with stakeholders, promote their participation to

ensure good governence principles are applied all

the time

The role of Stakeholders (Social Partners)

• Building Public Support• Actively Participate in Social Protection Process• Contributiong to inovative solutions to address

economic shocks and vulnerabilities specific to the nation as part of development process.

• Actively participate in the governence of the social security/protection schemes and programmes both for contributory and non contributory schemes

The role of Development partners and International Community

Experience Sharing =

Facilitate the exchange of

Information and Experience from

different countries and societies

Support the development of macroeconomic

frameworks and Policies = formulation,

implementation and monitoring of the national

policies

Where relevant and necessary provide

financial support to put in place social protection

system with gradual phasing out for

government to take the responsibility

Role of MOLE is to blend these societal groups for better SS System

MOLE is Mandated to Blend this up in building sustainable social security system

for all Tanzanians

Political buy in – to make rules

and regulations for the system

Government involvement –financing the system

Members of Public:

Tax/contribution acceptance

for public participation in

the system

The way forward

Continual to Implent the Social Security Policy and Reform Programme through the

• Extesion of Coveragy Strategy • Continuoe to work on the legal framework for

better participation and benefit of the population• Schemes for Informal sector including non-

contributory schemes targeting the most vulnerable groups (The Elderly, Children and Poor families)

THANKS FOR YOUR KIND ATTENTION

Social Security/protection for all