PART I · 2014-11-12 · PART I PRELIMINARY PROVISIONS 1. Short title and commencement. 2. Amendment of Social SecurityLaws. PART II AMENDMENT OF THE LOCAL AUTHORITIES PENSIONS FUND

PART IPRELIMINARY PROVISIONS

1. Short title and commencement.2. Amendment of Social SecurityLaws.

PART IIAMENDMENT OF THE LOCAL AUTHORITIES

PENSIONS FUND ACT, CAP.407

3. Construction.3A. Amendment of section 2.4. Amendment of section 3.5. Amendment of section 4.6. Amendment of section 7.7. Amendment of section 8.8. Amendment of section 11.9. Repeal of section 15.9A. Amendment of section 1610. Addition of section 18A.lOA. Amendment of section 19.11. Amendment of section 22.12. Amendment of section 24.13. Addition on section 27A.14. Amendment of section 29.15. Addition of section 29A.16. Amendment of section 30.17. Amendment of section 35.18. Amendment of section 38.

19. Amendment of section 39.20. Addition of section 43A.21. Amendment of section 49.22. Amendment of section 50.23. Amendment of section 59.24. Amendment of section 60.25. Repeal of section 65.26. Amendment of section 78.27. Amendment of section 81.28. Amendment of the First schedule.

PART ill.fuVIENDMENTOF THE NATIONAL HEALTH

INSURANCE FUND ACT, CAP.· 395

29. Construction.30. Amendment of section 3.31. Amendment of section 4.32. Amendment of section 6.33. Amendment of section 10.34. Addition of section 12A.35. Amendment of section 16.36. Addition of section 39A.37. Amendment of section 3337A. Amendment of section 3738. Amendment of section 43.39. Amendment of the Schedule.

PARTlYAMENDMENT OF THE NATIONAL SOCIAL

SECURITY FUND ACT, CAP. 50

40. Construction.41. Amendment of section 2.42. Amendment of section 4.43. Amendment of section 6.44. Repeal of section 8.

45. Amendment of section 9.46. Amendment of section 12.47. Addition of section 15A.48. Amendment of section 18.49. Amendment of section 20.50. Addition of section 20A.51. Amendment of section 21.52. Amendment of section 24.53. Amendment of section 27.53A. Repeal of sections 31 and 32.53B: Amendment of section 49.54. Amendment of section 42.55. Repeal of section 46.56. Amendment of section 47.57. Amendment of section 48.57A. Repealing of section 49.58. Amendment of section 53.59. Amendment of section 55.60. Amendment of section 56.61. Amendment of section 61.62. Amendment of section 62.63. Amendment of section 63.64. Amendment of section 68.65. Amendment of section 69.66. Addition of sections 71A and 7IB.67. Amendment of section 72.68. Amendment of section 74.69. Amendment of section 76.70. Amendment of section 77.71. Amendment of section 81.72. Amendment of section 82.73. Repeal of sections 83, 84, and 85.74. Amendment of section 89.75. Amendment of section 91.76. Amendment of the Second Schedule.77. Amendment of the Second Schedule.

PART VAMENDMENT OF THE PARAST AL ORGANIZATIONS

PENSIONS SCHEME ACT, (CAP. 372)

78.79.80.81.81A.82.82A.83.84.85.86.87.88.89.90.9I.92.93.94.95.96.97.98.99.100.10I.102.103.104.105.105A106.107.108.

Construction.Amendment of section 1.Amendment of section 2.Amendment of section 3.Amendment of section 3.Amendment of section 4.Amendment of section 5Amendment of section 6.Amendment of section 7Addition of section 7A.Amendment of section 8.Amendment of section 10.Amendment of section 11.Amendment of section 12.Amendment of section 13.Addition of section 13A.Amendment of section 14.Amendment of section 16.Amendment of section 17.Amendment of section 18.Amendment of section 20.Amendment of section 22.Amendment of section 24.Amendment of section 25.Amendment of section 27.Amendment ofseciion 28.Repealing of section 30.Amendment of section 31.Amendment of section 33.Amendment of section 34.Amendment of section 39.Repealing of sections 35.Repealing of sections 37 and 44.Amendment of section 38.

109. Amendment of section 40.11O. Repeal of section 45.111. Amendment of section 46.112. Amendment of section 47.113. Amendment of section 50.114. Amendment of section 51.115. Amendment of section 55.116. Repeal of section 56.117. Amendment of section 57.118. Amendment of the Schedule.

PART VIAMENDMENT OF THE PUBLIC SERVICE

RETIREMENT BENEFITS ACT, (CAP 371)

119. Construction.120. Amendment of section 2.121. Amendment of section 3.122. Amendment of section 5.123. Amendment ofseetion 6.124. Amendment of section 11.125. Amendment of section 12.125A. Amendment of section 16.]26. Amendment of section 18.127. Amendment of section 27.128. Amendment of section 33.129. Amendment of section 34.130. Amendment of section 36.131. Amendment of section 37.132. Amendment of section 39.132A. Amendment of section 41133. Amendment of section 48.134. Amendment of section 50.135. Amendment of section 51.136. Amendment of section 52.137. Amendment section 53.138. Amendment of section 71.139. Amendment of section 71.

140.140A.140B.140C.140D.140E.140F.141142.143.144.145.146.147.148.149.150.

PART VIIAMENDMENTOFTIffi SOCIALSECURITY

(REGULATORYAUTHORITY)ACT, (CAP. 135)

Construction.Amendment of section 3.Amendment of section 5.Amendment of section 16.Amendment of section 17.Amendment of section 19.Amendment of section 20.Amendment of section 6.Amendment of section 7.Amendment of section 8.Amendment of section 12.Amendment of section 28.Amendment of section 36.Addition of section 38A.Amendment of section 49.Addition of section 49A.Amendment of section 53.

PARTvmAMENDMENTOF THE INSURANCEACT, (CAP.394)

151. Construction.152. Amendment of section 13.

I ASSENT,

~11))-,,-u,"r}',4.<~w("",. J.c"0 •• \ •••••• t ... ',# ••• '>", ••.••. :"':-: •• ,~ l ,,,;. -President~r~,

[ .. .l.~>.... 0" ••• / ••• , ••• r.~~... ,..]

An Act to amend social security laws with a view to strengtheningregulatory functions and supervisory powers of the SocialSecurity Regulatory Authority on the social security schemes.

Short title andcommencement

PART IPRELIMINARY PROVISIONS

1. This Act may be cited as the Social Security Laws(Amendments) Act, 2012.

2. The various social security laws specified in variousParts of this Act are amended in the manner specified in theirrespective Parts.

Amendment ofSocial SecurityLaws

ConstructionCapA07

Amendment ofsection 2

Amendment ofsection 3Cap. 197

PART IIAMENDMENT OF nrn LOCAL AUTHORfrIES PENSIONS FUND

ACT, (CAP.407)

3. This Part shall be read as one with the LocalAuthorities Pensions Fund Act, hereinafter referred to as the"principal Act."

3A. The principal Act is amended by repealing section 2and substituting for it the following new section:

"Application 2. This Act shall apply in MainlandTanzania in relation to a person who is-

(a) employed in the formal orinformal sector; and

(b) self-employed,other than a person who is registered orinsured under any other written law."

4. The principal Act is amended in section 3, by-

(a) inserting in their appropriate alphabetical orderthe following new definitions-

"Authority" means the Social Security RegulatoryAuthority as established under the SocialSecurity Regulatory Authority Act;

"actuarial valuation" means valuation of the assets andliabilities of a scheme made by an actuarialwho is an expert in the science of calculationsof insurance risks and rates of premiums andcontributions;

"actuarial report" means a report prepared by anactuarial who undertakes actuarial valuationunder this Act;

"Bank" means the Bank of Tanzania established by theBank of Tanzania Act;

"beneficiary" means a person entitled to receivebenefits under this Act and it includes amember and survivor;

No.5 The Social Security Laws (Amendments) Act, 2012 2012 9"bonus" means an additional payment to a member or

contributor after attaining the compulsory ageof retirement and opts not to retire for someyears and continue to contribute for theadditional years;

"bonus rate" means additional factors multiplied to abeneficiary's benefit to determine bonuspayment as determined by an actuarial; and

"contributing employer" means an employer who hasthe statutory obligation to make contributionsto the Fund under this Act;

"formal sector" means the sector which includesemployers and employees who have enteredinto a construct of employment orapprenticeship or any other contractcontemplated in the definition of employee;

"informal sector" means the sector which includesworkers who work informally and who do notwork in terms of an employment contract orany other contract contemplated in thedefinition of employee;

"member" means a person employed in the formal orinformal sector within Mainland Tanzania, butdoes not include a person who has beenregistered or insured under any other writtenlaw;

"self employed" means a person who does not work interms of contract of employment orapprenticeship or any other contractcontemplated in the definition of the termemployee."

(b) deleting the definition of the terms -(i) "actuarial" and substituting for it the

following:"actuary" means a person trained to understand

risks and probabilities and to apply suchskills to the financial problem especialthose involving uncertain future events

such human mortality and mobility and isa member of an institute, society orassociation of actuaries approved by theAuthority;

(ii) "employee" and substituting for it thefollowing:

"employee" means an individual who-(a) has entered into a contract of

employment; or(b) has entered into any other

contract in which the individualundertakes to work personallyfor the other party to the contractthe other party is npt a client orcustomer of any profession,business, or undertaking carriedon by the individual; or

(c) is deemed to be an employee bythe Minister under section 98(3)of the Employment andLabour Relations Act; or

(d) is deemed to be an employee inaccordance with section 61 ofthe Labour Institutions Act.

(iii) "salary" and substituting for it thefollowing:"salary" means gross salary of the member

payable to an employee in considerationof the service rendered under the contractof service or apprenticeship or any otherform of office of call, excluding bonus,commission, cost of living allowance,overtime payment director's fees or anyother additional emoluments;"



5. The principal Act is amended in section 4, bydeleting the words "Local Authorities Pensions Fund"appearing in subsection (1) and substituting for them thewords "LAPF - Pensions Fund".

6. The principal Act is amended by repealing section 7and substituting for it the following:

"Management 7 0 -(1) The Board shall beof the Fund ObI fi h dresponSl e or t e management an

administration of the Fund inaccordance with:

(a) the provisions of thisAct and theregulations madethereunder;

(b) the Social SecurityRegulatory AuthorityAct and regulationsmade thereunder; and

(c) the guidelines anddirectives as may beissued by theAuthorityo

(2) The Board shall submit tothe Authority annually, financial andother reports on the activities of theFund as required by the SocialSecurity Regulatory Authority Act.

(3) Financial reports referred tounder subsection (2) shall contain -

(a) financial position ofthe Fund at that time;

(b) entries made day today of all sums of





money received andexpended by the Fundand matters in respectof which receipt andexpenditure tookplace;

(c) the assets andliabilities of theFund; and

(d) such otherinformation as maybe required by theAuthority."

7. The principal Act is amended in section '8 by-

(a) adding immediately after subsection (2) thefollowing new subsection:

"(3) The Director General shallhold office for a term of five years andmay, subject to satisfactory perfor-mance, be eligible for re-appointment."

(b) renaming subsection (3) as subsection (4).

8. The principal Act is amended in section 11, byadding immediately after paragraph (t), the following newparagraph:

"(g) to do such things as the Authority maydirect for efficient management of theFund."

9. The principal Act is amended in section 15, byrepealing subsections (4), (5) and (6).

9A. The principal Act is amend~d in section 16 by-

(a) adding immediately after subsection (2) thefollowing new subsection:

Addition ofsection 18A

"(3) Every employer who employs a non-citizenshall remit contribution on his behalf in accordancewith the provision of this Act." and(b) renumbering sub sections (2) and (3) as sub

sections (3) and (4).

10. The principal Act is amended by addingimmediately after section 18 the following new provision:

"Presidentmay exemptfrom certainconditions

18A.-(I) An insured personwho is a public officer may byapplication to the President, supportedby an affidavit and on therecommendation of a specifiedauthority, apply for exemption fromthe application to him of anycondition under this Act.

(2) For the purpose ofsubsection (1), the expression"specified authority means -

(a) in relation to a publicofficer serving under adistrict or regionaladministration, theRegionalAdministrativeSecretary;

(b) in relation to a publicofficer serving in aMinistry, thePermanent Secretary;

(c) in relation to a publicofficer serving in anextra-MinisterialDepartment or publicinstitutions, the Headof the Department orthe Public Institution;and


Amendmentof section 19

(d) in relation to a publicofficer serving in alocal governmentauthority, the CityDirector, theMunicipal Director orthe District ExecutiveDirector.

(3) Upon recommendation bythe specified authority, the applicationshall be submitted by the specifiedauthority to the Authority fordetermination and recommendation tothe President in terms of section 38Aof the Social Security (RegulatoryAuthority) Act.

(4) President may grant theexemption if he is satisfied that theapplication of such condition underthe Act to an insured person who is apublic officer would unfairlydisqualify that insured person fromgrant of benefits.

lOA. The principal Act is amended insection 19, by adding immediately aftersubsection (3) the following new subsections:

"(4) The employer may opt to contribute agreater rate than the amount stipulated insubsection (1).

(5) Where the employer agrees to contributeat a greater rate, such option shall not apply to amember whose contribution rate at any giventime does not exceed 'fifty percent of hiscontributions. "



(a) deleting paragraph (a) and substituting for itthe following new paragraph:

"(a) on attaining the age of fifty fivefor voluntary retirement or the ageof sixty for compulsory retirement;"

(b) deleting paragraphs (c), (d) and (e) andsubstituting for them the following newparagraphs:

"(c) on termination by employer afterattaining the age of fifty five; and

(d) on retirement after attaining the age offifty five on the directions in writingby the President."

12. The principal Act is amended by deleting section24 and substituting for it the following:

"Evaluationof the Fund

24.-(1) The Board shall, atintervals of three years or at anyother intervals as the Authority maydirect, cause the assets andliabilities of the Fund to beevaluated by an actuarial.

(2) A report of theevaluation carried out in accordancewith subsection (1 ), shall besubmitted to the Authority and theMinister.

(3) Based on the report, theAuthority may direct the Fund totake measures as may be necessaryto rectify an anomaly revealed bythe report."

13. The principal Act is amended by addingimmediately after section 27 the following new section-

"Payment of 27A. A contributing employeebonus h h . d th f .w 0 as attame e age 0 SiXty

and continues to contribute to the


Addition ofsection29A

Fund, shall be entitled to a bonusfor years of added service inaccordance with subsisting bonusrates."

14. The principal Act is amended in section 29, by-(a) adding the words "or widower" immediately after

the word "widow" appearing in paragraphs (a)and (b) of subsection (1);

(b) deleting a "full stop" appearing at the end ofparagraph (b) of subsection (2) and substitutingfor it a "colon";

(c) deleting the phrase "(3) Where an" appearing insubsection (3) and substituting for them thephrase "Provided that, where a notice is not givenor an"; and

(d) renumbering subsections "(4)" and "(5)" assubsections (3) and (4).

15. The principal Act is amended by addingimmediately after section 29 the following new section:

"Survivors' 29A. The sUlvivors pensionpenSlOll payable to a dependant shall be made

on the basis of percentage prescribedherein, namely:

(a) in the case of awidow or widower,forty per cent of thepension, and wherethere are more thanone widow theamount shall bedivided equallyamongst the widows;


(b) in the case of awidow or a widowerand where there areno dependantchildren, the widowor widower shall bepaid one hundred percent of the pension;

(c) in the case of adependant childreceiving full timeeducation, shall bepaid sixty per cent ofthe pension;

(d) where there is nowidow or widowerone hundred per centof the pension; and

(e) in the case wherethere are nodependent childrenor dependant spouse,parents of thedeceased shall bepaid one hundred percent of the pensionfor the remainder oftheir life."

16. The principal Act is amended in section 30, by-(a) deleting a "full stop" appearing at the end of

subsection (2) and substituting for it a "colon";and

(b) adding a proviso immediately after subsection(2) as follows:

"Provided that, where the insured personhas recovered from invalidity the pension shall be




suspended until he attains the age ofretirement. "

17. The principal Act is amended by repealing section35 and substituting for it the following:

"Servicenotqualifyingfor pension

35. Pension or gratuity shallnot be awarded under this Act to anyinsured person in respect of anyservice while he was absent from dutyon leave without salary, unless theemployer undertakes to pay into theFund both the employee's and theemployer's contributions for theperiod during which the employee wasabsent."

18.-(1) The principal Act is amended in section 38, byadding immediately after subsection (2) the following newsection:

"(3) Where an insured person was at a certainperiod overpaid or paid pension or gratuity pre-maturely, the Fund shall recover the pension or gratuitypaid prematurely in accordance with the provision ofsection 43."

19. The principal Act is amended in section 39. byadding immediately after subsection (4) the following newsubsection:

"(5) An insured person referred to undersubsection (4) shall be entitled to pension or gratuity,as the case may be, if-

(a) the insured person has resumed tocontribute to the Fund for a period ofnot less than three years from the dateof resumption of contribution to theFund;



(b) the insured person has paid full costfor back-purchase of the benefits due asmay be determined under the Act,

and the computation of his pension or gratuity is madeby using the highest salary before his account wasfrozen."20. The principal Act is amended by adding

immediately after section 43 the following new section:"Protection of 43A. The sum standing tocontribution th d' f ' de cre It 0 an Insure person

shall, until such time when it ispaid out in accordance with theprovisions of this Act, remain theproperty of the Fund and shall notform part of the assets of aninsured person in the event ofbankruptcy, or insolvency or beliable for attachment insatisfaction of debts, unless suchsum relates to home mortgage inwhich case the mortgagee shallhave right to attach any portion ofcontribution which is the subjectof collateral."

21. The principal Act is amended by repealing section49 and substituting for it the following-

"In vestmentofthe moneysofthe Fund

49.-( I) The Board may,invest money of the fund in anyviable economic venture it copsidersappropriate.

(2) The Board shall, inconsidering the appropriateness ofthe venture for investment, take intoaccount the economic andcommercial viability of that ventureand guidelines as may i~sued underthe Social Security (RegulatoryAuthority) Act.




Repeal ofsection 65

(3) Where an investment ismade in breach of subsections (1)and (2), each member of the Boardof Trustees, director, manager or anyofficer of the Fund who took part inthat decision shall be personallyliab!e to a penalty of fine asprescribed under the Social SecurityRegulatory Authority Act.

(4) Notwithstanding thepenalty imposed under subsection (3)the Bank shall have power to -

(c) regulate the Fund to complywith the investment procedures;

(d) discontinue the investment; or(e) take any other measure it

considers appropriate."

22. The principal Act is amended in section 50,by deleting the opening phrase and substituting for it thefollowing:

"The Board may, subject to sections 49 and 58utilize moneys in the Fund for-".

23. The principal Act is amended in section 59, byinserting immediately after the designation "Minister"appearing in the where it appears for the second time in thatsection the following phrase ", the Minister responsible forfinance and the Authority".

24. The principal Act is amended in section 60 byinserting the words "and the Authority" between the word"Minister" and "a copy" appearing in subsection (3).

25. The principal Act is amended by repealing section65 and substituting for it the following:.



"Criminalproceedings

65.-(1) The Director General,Inspector or any other Officers of theFund approved by the Board mayinstitute criminal proceedings in thecourt in accordance with section 71provided that the Director General,the Inspector or such officer is apublic prosecutor appointed by theDirector of Public Prosecutions.

(2) Where a case is institutedbefore the court in relation to recoveryof contributions, any personauthorized under this section mayappear and conduct the case."

26. The principal Act is amended in section 78, bydeleting the words "uninsured" appearing in the third line ofthat section and substitutingfor it the word "insured".

27. The principal Act is amended in section 81 by-

(a) deleting the opening phrase and substituting forit the following:

"The Minister may, on therecommendation of the Board and inconsultation with the Authority, makeregulations providing for-"

(b) deleting paragraphs (b), (f) and the word "and"appearing at the end of paragraph "(f)";

(c) renaming paragraph (c), (d), (e) and (g) asparagraphs (b), (c), (d) and (e); and

(d) adding immediately after the renamed paragraph(e) the following new paragraphs:

"(f) duration under which benefitsshall be paid to a widow orwidower; and

(g) payment of maternity andfuneral grants."

Amendment ofFirst Schedule

(a) deleting paragraph 1 and substituting for it thefollowing new sub items:

"Composition 1.-(1) The Boardof the Board shall be composed

of-

(a) a Chairmanwho shall beappointed bythe President;

(b) a memberrepresentingthe Ministryresponsiblefor localgovernmentauthorities;

(c) a memberrepresentingthe AttorneyGeneral;

(d) two membersrepresentingthe mostrepresentativeemployersAssociation;

(e) a memberrepresentingemployers'association;and

(f) a memberrepresentingthe privatesector

appointed fromamongstpersons withknowledge andexpenence onmatters relatingto socialsecurity.

(2) Themembers referred tounder paragraph (b)to (f) shall beappointed by theMinister uponrecommendation bythe respectiveinstitutions.

(3) TheMinister shall, inappointing membersunder this paragraphensure that allmembers are properand fit persons forperforming advisoryfunctions of theBoard under theprovisions of thisAct and regulationsmade thereunder andthe Social SecurityRegulatoryAuthority Act."

(b) renumbering paragraph 2 as paragraph 4.

ConstructionCap. 408


PART IIIAMENDMENT OF TIlE NATIONAL HEALTH

INSURANCE FuND ACT, (CAP.395)

29. This Part shall be read as one with the NationalHealth Insurance Fund Act, referred to as the "principal Act".

30. The principal Act is amended in section 3, byinserting in their respective alphabetical order the following newdefinitions-"actuarial" means a person trained to understand risks and

probabilities and to apply such skills to the financialproblem especial those involving uncertain future eventssuch human mortality and mobility and is a member ofan institute, society or association of actuaries approvedby the Authority;

"actuarial valuation" has the meaning ascribed to it under theSocial Security (Regulatory Authority) Act;

"actuarial report" means a report prepared by an actuarial whoundertakes actuarial valuation under this Act;

"Authority" means the Social Security Regulatory Authorityestablished under the Social Security (RegulatoryAuthority) Act;

"Bank" means the Bank of Tanzania established by the Bank ofTanzania Act;

"employee" means an individual who-(a) has entered into a contract of employment; or(b) has entered into any other contract in which the

individual undertakes to work personally for theother party to the contract the other party is not aclient or customer of any profession, business, orundertaking carried on by the individual; or

(c) is deemed to be an employee by the Minister undersection 98(3) of the Employment and LabourRelations Act; or '

(d) is deemed to be an employee in accordance withsection 61of the LabourInstitutions Act."




"formal sector" means the sector which includes employers andemployees who have entered into a contract ofemployment apprenticeship or any other contractcontemplated in the definition of the term "employee";

"member" means any person or employee employed in theformal or informal sector or self employed withinTanzania mainland, registered or insured under this Act;

"salary" means gross salary of the member payable to anemployee in consideration of the service rendered underthe contract of service or apprenticeship or any otherform of office of call, excluding bonus, commission, costof living allowance, overtime payment, Director's feesor any other additional emoluments;"

"voluntary contribution" means any other form of contributionapart from statutory contributions of any person wishingto access supplementary services."

31. The principal Act is amended in section 4, by addingimmediately after subsection (3) the following new subsection:

"Operations offundCap.l3S

(4) Operations of the Fundestablished under this section shall besubject to the provisions of the SocialSecurity (Regulatory Authority) Act."

32. The principal Act is amended in section 6 byrepealing subsection (5) and substituting for it the followingnew provlsiOn:

"(5) The Director General shall hold anoffice for a term of five years and may, subject tosatisfactory performance, be eligible for re-appointment. "

33. The pnncipal Act is amended by repealingsection 10 and substituting for it by the following:

"Review of 10. The Board may review thecontributions rates of contributions to the Fundrates subject to regulations, guidelines or

directives issued by the Authority."



"Authoritymay exemptcertainconditions

12A.-(l) A member may, byapplication to the Authority, supportedby an affidavit and on therecommendation of a specifiedauthority, apply for exemption fromthe application to him of any conditionunder this Act.

(2) For the purpose ofsubsection (1), the expression"specified authority" means -

(a) in relation to a publicofficer serving under adistrict or regionaladministration, theRegionalAdministrativeSecretary;

(b) in relation to a publicofficer serving III aMinistry, thePermanent Secretary;

(c) in relation to a publicofficer serving in anextra-Min isterialDepartment or PublicInstitution, the Head ofthe Department or thePublic Institution; and

(d) in relation to a publicofficer serving in thelocal governmentauthority, the City,Municipal or DistrictExecutive Director.

Amendmentofscction 16


(3) Upon recommendation bythe specified authority, the applicationshall be submitted by the specifiedauthority to the Authority fordetermination in terms of section 38Aof the Social Security (RegulatoryAuthority) Act.

(4) Authority may grant theexemption if it is satisfied that theapplication of such condition underthe Act to a member would unfairlydisqualify that member from benefitpackage".

35. The principal Act is amended in section 16 byadding immediately after subsection (3), the following newsubsection:

"(4) Notwithstanding the subsections (1) and(2), the benefit pe,ckage may be reviewed by thescheme subject to regulations guidelines or directivesissued by the Authority.


"Actuarialreport

39A.-(1) The Board shall, atintervals of three years or at any otherintervals as the Authority may direct,cause the assets and liabilities of the Fundto be evaluated by an actuarial.

(2) A report of the evaluationcalTied out in accordance with subsection(1), shall be submitted to the Authorityand the Minister.

(3) Based on the report, theAuthority may direct the Fund to takemeasures as may be necessary to rectifyan anomaly revealed by the report."



37. The principal Act is amended in section 33 by -(a) re-designating section 33 as section 33(1); and(b) adding immediately after the re-designated

subsection (1) the following new subsection:(2) Where an investment is made

in breach of subsections (1) and (2), theMember of Board, Director, manager orany officer of the Fund who took partin the decision to invest shall bepersonally liable to a penalty or fine ofas prescribed under the Social Security(Regulatory Authority Act).

(3) Notwithstanding thePenalty imposed under subsection (3)the Bank shall have power to-

(a) require the Fund to complywith the procedures forinvestment;

(b) discontinue the investment;or

(c) take other measures asmay be appropriate."

37A. The principal Act is amended in section 37, byadding immediately after subsection (3) the following newsubsections:

"(4) The Board shall submit annually to theAuthority financial report and other reports on the activitiesof the Fund as required by the Social Security (RegulatoryAuthority) Act.

(5) The financial reports referred to undersubsection (4) shall contain-

(a) financial position of the Fund at that time;(b) day to day entries of aJI sums of money

received and expended by the Fund andmatters in respect of which receipt andexpenditure took place;


Amendmentof theSchedule

ConstructionCap. 50

Amendmentof Section 2

(c) the assets and liabilities of the Fund; and(d) such other information as may be required by

the Authority."

38. The principal Act is amended in section 43 (2),by inserting the phrase "provided that the Director General,the Inspector or such officer is a public prosecutor appointedby the Director of Public Prosecutions" immediately afterthe word "Board."

39. The principal Act is amended in the Schedule bydeleting paragraph (c) and substituting for it the following:

"(c) one member representing the Organisation ofemployees the majority of whom aremembers to the Fund;"

PART IVAMEND1.1ENT OF urn NATIONAL SOCIAL SECURITY FUND

ACT, (CAP. 50)

40. This part shall be read as one with the NationalSocial Security Fund Act, hereinafter referred to as the"principal Act".


(a) inserting in their respective alphabetical orderthe following new definitions:

"actuarial" means a person trained to understandrisks and probabilities and to apply suchskills to the financial problems especial thoseinvolving uncertain future events and thatperson is a member of an instate, society orassociation of actuaries approved by theAuthority;

"actuarial valuation" means valuation of assets andliabilities of a scheme made by an actuarialwho is an expert in the science ofcalculations of insurance risks and rates ofpremiums and contributions;

"actuarial report" means a report prepared by anactuarial who effected actuarial evaluationunder this Act;

"administration expenses" means all cost incidentalor in relation to registration of members,collection of members' contributions anddisbursement of members' benefits;

"Authority" means the Social Security RegulatorAuthority established under the SocialSecurity Regulatory Authority Act;

"Bank" means the Bank of Tanzania establishedunder the Bank of Tanzania Act;

"contract of service" has a meaning ascribed to itunder the Employment and Labour RelationsAct; and

"employee" means an individual who has enteredinto a contract of employment; or hasentered into any other contract in which:

(i) the individual undertakes to workpersonally for the other party to thecontract; and

(ii) the other party is not a client orcustomer of any profession,business, or undertaking carried onby the individual; or

(iii) is deemed to be an employee by theMinister under section 98(3) of theEmployment ,and Labour RelationsAct;

(iv) is deemed to be an employee inaccordance with section 61 of theLabour Institutions Act.

"formal sector" means the sector which includeemployers and employees who have enteredinto contract of employment orapprenticeship or any other contract;

"informal sector" means the sector which includeworkers who work informally and who donot work in terms of an employment contractor any other contract;

"inspector" means a compliance officer or any otherperson duly appointed by the Board ofTrustees;

"medical board" means a Board appointed by theMinister;

"member" means any person or employee employedin the formular informal sector or selfemployed within mainland Tanzania insuredor registered under this Act;

"Minister" means the Minister responsible for socialsecurity matters;

"salary" means gross salary of the member payableto an employee in consideration of theservice rendered under the contract ofservice or apprenticeship or any other formof office of call, excluding bonus,commISSIon, cost of living allowance,overtime payment, Director's fees or anyother additional emoluments;

"self employed" means a person who does not workin terms of contract of employment orapprenticeship or any other contractcontemplated in the definition of the termemployee;

"special lump sum" means an average amount of thelast sixty months contributions times thenumber of months of contributions paid tothe Fund:



Provided that, where contributions sopaid are less than sixty months, the insuredperson shall be paid his accumulated balanceas a lump sum plus accrued interest as maybe prescribed by the Social SecurityRegulatory Authority from time to time;

(b) deleting the definitions of the terms,employee's share, insured person, wages, andminimum wages and substituting for them thefollowing new definitions:

"employee's share" means that portion of a statutorycontribution set out in the First Schedule tothis Act to be employees share to suchcontribution;

"insured person" means an employee or a workerregistered by the Fund and includes a personentitled to or receiving benefits under theFund;

"minimum salary" means the amount determinedannually by the minimum wage Board as therates of average gross monthly earnings forpersons employed locally in Tanzania.

42. The principal Act is amended in section 4 byadding immediately after subsection (2) the following newsubsection:

(3) The Director General shall hold officefor a term of five years and may, subject tosatisfactory performance, be eligible for re-appointment."

43. The principal Act is amended by repealingsection 6 and substituting for it, the following newproVISIon:

"Insuredperson

6.-( 1) This Act shall apply inMainland Tanzania in relation to aperson who is:

Repeal ofsection 8



(a) employed in the formal orinformal sector; and

(b) self~employed,other than a person who is registeredor insured under any other writtenlaw.

(2) Every insured person shallbe issued with a registration numberupon registration."

44. The principal Act is amended by repealingsection 8.

45. The principal Act is amended in section 9, by -

(a) deleting paragraph (a);(b) renaming paragraph (b) as paragraph (a); and(c) adding immediately after the renamed

paragraph (a) the following new paragraph-"(b) his employer has been

restructured, sold or leased

46. The principal Act is amended by repealingsection 12 and substituting for it the following:

"Statutorycontributionsbycontributingemployers

12.-(1) A contributingemployer shall, for everycontribution period following thedate of appointment of an insuredperson, pay to the Fund acontribution that consist of theemployer's and employee's share atthe rate stipulated in the FirstSchedule.

(2) The employer may opt tocontribute a greater rate than theamount stipulated in subsection (1).


(3) Where the employeragrees to contribute at a greater rateor the whole contribution rate, suchoption shall not apply to a memberwhose contribution rate at any giventime does not exceed fifty percent ofhis contributions.

(4) No contribution shall bepaid under this section in respect ofan insured person who dies duringthe contribution period, unless theemployer deducts the employee'sshare of contribution from the salatypayable in respect of any. part ofsuch period to the estate of thedeceased member.

(5) A voluntary contributingemployer of an insured person shallremit to the Fund contribution at thepercentage stipulated in the FirstSchedule or a higher contributionrate or segmentation of benefit rateto be regulated by the Ministerfollowing the results of actuarialvaluation.

(6) An employer of a non-citizen shall remit contribution forsuch employee in accordance withthe provision of this Act.

(7) Every contribution shallbe paid to the Fund within onemonth after the end of the month towhich the contribution relates."

47. The principal Act is amended by addingimmediately after section 15 the following new section-

"Non remittance 15A.-(I) Where the Directorby the employer Ge I . . fi d h th .nera ISsatis Ie t at ere IS

Amendmmlof section 18


evidence of non remittance of themember's contribution to the Fund byan employer as required under thisAct, he shall report such default to theAuthority.

(2)Without prejudice tosubsection (1), the Director Generalshall report to the Authority anyunusual occurrence which in hisopinion, is likely to jeopardizeinterests or rights of members of theFund."

48. The principal Act is amended by repealingsection 18 and substituting for it the following new section-

"RecoveryofcontributionCap. 33

18.-(1) Every statutorycontribution due to the Fund may berecovered by way of a summary suitunder Order XXXV of the CivilProcedure Code at any time after thedate on which it is due.

(2) Where an offence iscommitted by reason of non-paymentof statutory contribution, noprosecution shall be commencedwithout consent of the Director ofPublic Prosecutions".

49. The principal Act is amended in section 20, byadding immediately after subsection (3) the following newsubsections:

"(4) Without prejudice to subsections (1),(2) and (3), benefit for entitled person may beused as collateral for home mortgage for amember who has not attained the age ofretirement.


(5) The amount to be considered as thevalue out of collateral for home mortgage shall bedetermined and set at the rate prescribed under

Cap. 135 regulations and guidelines made under the SocialSecurity (Regulatory Authority) Act."


''Presidentmay exemptfrom certainconditions

20A.-(1) A member who is apublic officer may by application tothe President, supported by anaffidavit and on the recommendationof a specified authority, apply forexemption from the application tohim of any condition under this Act.


(a) in relation to a public officerserving under a district orregional administration, theRegional AdministtativeSecretary;


(c) in relation to a publicofficer serving in anextra-MinisterialDepartment or publicinstitution, the Head ofthe Department or thepublic institution; and



(d) in relation to a publicoffice serving in alocal governmentauthority, the CityDirector, MunicipalDirector or DistrictExecutive Director.

(3) Upon recommendation bythe specified authority, the applicationshall be submitted by the specifiedauthority to the Authority fordetermination and recommendation tothe President in telms of section 38Aof the Social Security (RegulatoryAuthority) Act.

(4) President may grant theexemption if he is satisfied that theapplication of such condition underthe Act to a member who is a publicofficer would unfairly disqualifY thatmember from grant of benefits.

51. The principal Act is amended in section 21, by-(a) re-designating section 2 1 as section 21(1);

and(b) adding immediately after subsection (1) as

re-designated the following new subsection:"(2) The benefits payable under this

Act may be segmented in accordance withthe provisions of this Act."

52. The principal Act is amended in section 24, bydeleting subsection (3) and substituting for it the followingnew subsection:

"(3) The minimum monthly pension may berecommended by the Board upon consultation withthe Authority and based on actuarial valuation."


Repeal ofsections 31and 32

Amendmentofsection 49


53. The principal Act is amended in section 27, byadding the phrase "for each completed month less than thepensionable age" immediately after the word "earnings"appearing in subsection (2).

53A. The principal Act IS amended by repealingsections 31 and 32.

53B. The principal Act is amended by repealingsection 49 and substituting for it the following:

"Penaltyforpaymentorbenefits

49.-(1) An employer shall, within sixmonths before the date of retirement of hisemployee, notify the Fund in writingabout the date of retirement of hisemployee.

(2) The Fund shall ensure that,within sixty days following the date ofnotification of retirement, pay to themember the due retirement benefits.

(3) Where the Fund fails to payretirement benefits to a member within aperiod specified under sub-section (2),and the member is not responsible for thatfailure, the Fund shall pay the member theprincipal sum that is due for payment asretirement benefits plus a penalty offifteen percent of that sum per annum."

54. The principal Act is amended in section 42, bydeleting subsection (2) and substituting for it the followingnew subsection-

"(2) Subject to the provisions of the SocialSecurity (Regulatory Authority) Act, medical benefitsto be granted shall include preventive and curativecare including but not limited to essential drugs,clinical pathology and X-rays, laboratory tests,hospitalization, minor and major surgery or any otherbenefits as may be determined by the Board."

Repeal ofsection 46





"Restrictionon doublepayment

47.-(l) An insured person orhis dependant shall not be entitled toreceive more than one benefit paid outin respect of the same contingency.

(2) The provision ofsubsection (1) shall not apply to aninsured person who is a member ofboth mandatory and supplementaryschemes.

(3) Subject to the provision ofsubsection (1), an insured person orhis dependant who qualifies for morethan one benefit in respect of the samecontingency shall be entitled to bepaid the benefit which is the highest orgreater."

57. The principal Act is amended by repealingsection 48 and substituting for it the following -

"Adjustmentofbencfits

48.-(1) The rates of benefit payableshall be determined and be set inconformity with standards andguidelines issued in accordance withthe provisions of the Social Security(Regulatory Authority) Act.

(2) Benefit rates shall bereceived from time to time by theBoard and adjusted in line withactuarial valuation of the Fund as maybe directed by the Authority."



Repealingof section49

57 A. The principal Act is amended byrepealing section 49 and substituting for it thefollowing:

"Penalty forpayment ofbenefits

49.-(1) An employer shall,within six months before the date ofretirement of his employee, notifythe Fund in writing about the date ofretirement of his employee.

(2) The Fund shall ensurethat, within sixty days following thedate of notification of retirement,pay to the member the dueretirement benefits.

(3) Where the Fund failsto pay retirement benefits to amember within a period specifiedunder sub-section (2), and themember is not responsible for thatfailure, the Fund shall pay themember the principal sum that isdue for payment as retirementbenefits plus a penalty of fifteenpercent of that sum per annum."


(a) deleting the reference to the "Third Schedule"appearing in subsection (3) and substituting for itthe reference to the "Second Schedule"; and

(b) inserting the phrase "which shall be registered bythe Authority" immediately after the word"Fund" appearing in subsection (1).

\

59. The principal Act is amended in section 55, bydeleting paragraph (a) and substituting for it the followingnew paragraph-




to formulate, implement and review policiesrelating to the Fund in accordance with thisAct and the Social Security (RegulatoryAuthority) Act."


(a) deleting a full stop appearing at the end ofparagraph (c) and substituting for it a semi-colon;

(b) adding immediately after paragraph (c) thefollowing new paragraph:

"(d) to submit accounts of the Fundin respect of each financial yearfor auditing by the Controllerand Auditor-General;

61. The principal Act is amended in section 61 by -

(a) adding immediately after subsection (2) thefollowing new subsection-

"(3) The Board shall maintain areserve account into which accumulatedrevenues not needed to meet the costs of thecurrent financial year shall be deposited";and

(b) renumbering subsections (3) to (5) assubsections (4) to (6) respectively;

(c) deleting subsection (5) as renumbered andsubstituting for it the following new subsection-

"(5) The Board shall use, disburse,administer and manage funds subject to

Cap. 135 guidelines issued under the SocialSecurity Regulatory Authority Act."

62. The principal Act is amended by repealingsection 62 and substituting for it the following new section:

"Investment 62.-(1 ) The Board may,of the· f h fu d .moneys of mvest money 0 ten ill anythe Fund viable economic venture it

considers appropriate.




(2) The Board shall, inconsidering the appropriateness of theventure for investment, take intoaccount the economic and commercialviability of that venture andguideline as may issued under theSocial Security (Regulatory Authority)Act.

(3) Where an investment ismade in breach of subsection (1), eachmember of the Board of Trustee,director, manager or any officer of theFund taking part of the decision toinvest shall be personally liable to apenalty of fine as prescribed l.lnder theSocial Security Regulatory AuthorityAct."

(4) Notwithstanding thepenalty imposed under subsection (3)the Bank shall have power to -

(a) regulate the Fund tocomply with theinvestment procedures;

(b) discontinue theinvestment; or

(c) take any other measure itconsiders appropriate.

63. The principal Act is amended in section 63 bydeleting the phrase "section 61" appearing in the first lineand substituting for it the phrase "sections 62 and 67" .

64. The principal Act is amended in section 68, byinserting immediately after the word "may" appearing in thefirst line the words "subject to the approval by the Minister,Minister responsible for Finance and the Authority".

Addition ofsections 71Aand 71B

(a) deleting subsection (2) and substituting forit the following new subsection:

"(2) The accounts of the Fundincluding the balance sheet relating tothat financial year shall, not later thansix months after the closure of everyfinancial year, be audited by theController and Auditor- General andthe audited accounts shall besubmitted to the Authority and theBank."

(b) deleting subsection (5) and substituting forit the following new subsections:

"(5) The Board shall publishannual audited accounts report insuch a manner as the Minister may,in consultation with the Authority,prescribe.

(6) The Board shall, subjectto the provisions of the SocialSecurity Regulatory Authority Act,Cap.l3Ssubmit to the Authority and to theBank a copy of the audited statementof accounts together with a copy ofthe report of the auditor."

66. The principal Act is amended by addingimmediately after section 71 the following new sections:

"Management 71A.-(1) The Board shall beoftheFund responsible for the management and

control of the Fund, and preparationof financial reports in accordancewith the provisions of this Act andregulations made thereunder anddirectives and guidelines issued byAuthority.

Actuarialreports to befurnished tothe Bank

(2) Financial reports referredto under subsection (1) shall contain-

(a) financial position ofthe fund at that time;

(b) entries made day today of all sums ofmoney received andexpended by the Fundand matters in respectof which receipt andexpenditure takesplace;

(c) the assets andliabilities of the Fund;and

(d) such other informationas may be required bythe Authority.

71B.-(I) The Board shall, forthe purpose of supervision, at theinterval of three years or at suchother interval as may be determinedby the Authority cause the assetsand liabilities of the Fund to beevaluated by the actuarial andsubmit a copy of such report to theAuthority and the Minister.



(2) The Authority may, uponthe receipt of the report undersubsection (1) and after scrutinizingthat report, direct the Board torectify any anomalies identify inthat report".


(a) adding immediately after paragraph (i) ofsubsection (1) the following new paragraph:

"(j) assault, intimidate orbrawls an inspector in thecourse of his duties,"

(b) repealing subsection (3) and substituting forit the following new subsection:

"(3) Where the DirectorGeneral is of the opinion that anoffence has been committed or isabout to be committed under this Act,he shall commence investigations andinstitute criminal proceedings uponobtaining the consent of the Directorof Public Prosecutions."


"Recoveryofcontribution

74.-(1) An action for therecovery of contributions may beinstituted before any court by theDirector General, an inspector, or anyother officer of the Board appointedby the Board on that behalf

(2) The Director General orany other authorised Officer of theFund approved by the Board mayinstitute criminal proceedings in thecourt in accordance with section 72provided that the Director General or



such officer is a public prosecutorappointed by the Director of PublicProsecutions."


"Protection ofcontri butions

76. The sum standing to thecredit of an insured person shall,until such time when it is paid out inaccordance with the provisions ofthis Act, remain the property of theFund and shall not form part of theassets of an insured person in theevent of bankruptcy, or insolvencyor be liable for attachment insatisfaction of debts, unless suchsum relates to home mortgagereferred to under section 20(4) ofthis Act in which case the mortgageeshall have right to attach any portionof contribution which is the subjectof collateral."

70. The principal Act is amended by deletingsection 77 and substituting for it the following new section-

"Protectionagainstattachment

77. Notwithstanding anythingto the contrary contained in anyother written law, where an orderhas been obtained against acontributory insured person andsubject to the provision ofsubsection (4) of section 20, noexecution, attachment or process ofany nature shaJl be issued againstcontributions of the contributoryinsured person, except in accordancewith the terms of the Fund, such



Repeal ofsections 83,84 and 85


contributions shall not form part ofthe contributory assets of the insuredperson in the event of bankruptcy."

71. The principal Act is amended in section 81, byrepealing subsection (3) and substituting for it thefollowing:

"(3) Where the Director General or anyother person is dissatisfied with the decision madeby the Medical Board, he may refer the decision tothe Authority."

72. The principal Act is amended in section 82, byrepealing -

(a) subsection (3) and substituting for it thefollowing new subsection:

"(3) Where person isdissatisfied with the decision on aclaim to benefits or a question as toliability, he may apply to theAuthority for review."

subsection (6) and substituting for it thefollowing new subsection:

"(6) All applications forreview under this Act shall be madein writing within thirty days from thedate of the decision complainedabout."

73. The principal Act IS amended by repealingsections 83, 84 and 85.

74. The principal Act is amended in section 89 by -

(a) inserting immediately after the word "may"appearing in the first line of subsection (1) thefollowing phrase "in consultation with theAuthority" ;


Amendmentofthe SecondSchedule

(b) deleting a full stop appearing at the end ofparagraph (g) and substituting for it a semi-colon;

(c) adding immediately after paragraph (g) ofsubsection (1) the following new paragraph-

"(h) prescribing benefits segmentationfollowing recommendation ofactuarial valuation,"


"Establishmentof ~uppkmen-tary schemes

91.-(1) The Board mayestablish supplementary schemes inaccordance with provisions of theSocial Security (RegulatoryAuthority) Act.

(2) The Board may managesupplementary schemes establishedby the employer or employee who isinsured person under separateaccount."

76. The principal Act is amended in the SecondSchedule by deleting sub-paragraph 1 and substituting for itthe following new sub-paragraph:

"(1) The members of the Board shall be -(a) a Chairman who shall be appointed by the

President;(b) two members representing the most

representative employers organization;(c) two members representing organizations of

employees the majority of whom are membersto the Fund;

(e) a representative of the Ministry responsible forlabour;

(f) a member representing the Ministryresponsible for finance; and

Amendmentof SecondSchedule

ConstructionCap.372

Amendmentof Section 1

(g) one member representing the private sectorappointed from amongst person withknowledge and experience on social securitymatters.

(h) one representative from the Attorney General'sOffice.

77. The Second Schedule to the principal Act isamended in paragraph 2 by-

(a) adding immediately after sub-item {3) thefollowing new sub..;items:

"(4) The Minister shall, inappointing members, ensure that allmembers are proper and fit personsfor performing advisory functions ofthe Board under the provisions ofthis Act and regulations madethereunder and the Social SecurityRegulatory Authority Act."

(b) renumbering subparagraphs (4) and (5) asparagraphs (6) and (7) respectively.

PART VAMENDMENT OF PARASTATAL ORGANIZATIONS

PENSIONS SCHEME ACT, (CAP. 372)

78. This Part shall be read as one with the ParastatalOrganizations Pensions Scheme Act, hereinafter referred toas the "principal Act"


(a) deleting the phrase "Parastatal OrganizationsPensions Scheme Act" and substituting for itthe phrase "the PPF Pensions Fund Act."

(b) re-designating section 1 as section 1(1); and


(c) adding immediately after the re-designatedsubsection (1) the following new subsection:

"(2) This Act shall apply to anyperson employed in the formal or informalsector or self employed within mainlandTanzania and shall not apply to a personwho has been registered or insured underany other written laws.


(a) inserting in their respective alphabetical orderthe following new definitions:

"actuarial" means a person trained to understandrisks and probabilities and to apply suchskills to the financial problems especial thoseinvolving uncertain future events and thatperson is a member of an instate, society orassociation of actuaries approved by theAuthority;

"actuarial valuation" means valuation of assets andliabilities of a scheme of the Fund made byan actuarial;


"Authority" means the Social Security RegulatoryAuthority established under the SocialSecurity (Regulatory Authority) Act;



employment; or

(b) has entered into any other contract inwhich the individual undertakes to workpersonally for the other party to thecontract the other party is not a client orcustomer of any profession, business, orundertaking carried on by the individual;or

(c) is deemed to be an employee by theMinister under section 98(3) of theEmployment and Labour RelationsAct;

(d) is deemed to be an employee in accordancewith section 61 of the LabourInstitutions Act;

"administration expenses" means all costs incidentalto or in relation to registration of members,collection of members contributions anddisbursement of members' benefits;

"annual pensionable emoluments" means an averageof five years highest salary of a memberearned during his pensionable services;

"Board" means the Board of Trustees of the PPFPensions Fund;

"Director" means the Director General appointedunder section 7A of the Act;

"formal sector" means the sector which includesemployers and employees who have enteredinto a contract of employment apprenticeshipor any other contract contemplated in thedefinition of the term "employee";

"Fund" means the PPF Pension Fund establishedunder section 6;

"informal sector" means the sector which includesworkers who work informally and who donot work in terms of an employment ofcontract or any other contract contemplatedin the definition of the term "employee";

"Medical Board" means the Board appointed by theMinister responsible for health matters forthe purpose of determining medical issuesunder this Act;

"retirement age" means the age which when attainedby a member, qualifies that member forpension benefits and entitles him to receive;payment of the benefit immediately afterretirement from service or from the schemeestablished by the Board under section 18(e)to which the member belongs;

"retirement" means cessation of employment uponattainment of the age of fifty five or above orany age set under the specific scheme asprovided for under paragraph (e) of section18;

"self employed" means a person who does not workin terms of a contract of employment orapprenticeship or any other contractcontemplated in the definition of the term"employee" .

(b) deleting paragraph (a) in the definition of theterm "pensionable service" and substitutingfor it the following paragraph:

(a) any period of service forwhich contributions areremitted to the scheme by theemployer since his becominga member;"

(b) by deleting the definitions ofthe word "service", "member"and substituting for it thefollowing:

"member" means any person employed in the formalor informal sector within Mainland Tanzania,excluding a person who has been registeredor insured under any other written law;



"salary" means gross salary of the member payableto an employee in consideration of theservice rendered under the contract of serviceor apprenticeship or any other form of officeof can, excluding bonus, commission, cost ofliving allowance, overtime payment,Director's fees or any other additionalemoluments;"

"service" means service with one or moreemployers".

81A. The principal Act is amended in section 3 byadding the following new sections:

"I\.:nalty lor 3A.-(1) An employer shall, withinpavment of . h b £ h d f .be~efits SIX mont s e ore t e ate 0 retlfement

of his employee, notify the Fund inwriting about the date of retirement of hisemployee.

(2) The Fund shall ensurethat, within sixty days following the dateof retirement, pay to the member the dueretirement benefits.

(3) Where the Fund fails topay retirement benefits to a memberwithin a period specified under sub-section (2), and the member is notresponsible for that failure, the Fund shallpay the member the principal sum that isdue for payment as retirement benefitsplus a penalty of fifteen percent of thatsum per annum."


(a) deleting the marginal notes and substitutingfor it the following:

"Pension, gratuity and other benefits"(b) repealing subsection (1) and substituting for

it the following new subsection:



"(1) Pensions, gratuitiesand other benefits shall begranted by the Board in

Cap. 135 accordance with the provisionsof this Act; and the provisions ofthe Social Security (RegulatoryAuthority) Act."-

(c) adding immediately after subsection (2) thefollowing new subsection:

"(3) Notwithstandingsubsections (1) and (2) the pension,gratuities and other benefits to begranted under this section shall be

Cap.l35 computed at such rates as may beprescribed by the Authority underthe Social Security (RegulatoryAuthority) Act."


"Establish- 4.-(1) There is established amcnt of the h b kn thscheme sc erne to e own as e PPF

Pensions Scheme.(2) The operation of the

scheme shall be subject to theCap 135 provisions of this Act and the Social

Security (Regulatory Authority)Act."

82A. The principal Act is amended in section 5(1),by deleting paragraph (d) and substituting for it thefollowing new paragraph:

"(d) any person who ceases to be amember due to any reasons inwhich he does not attain theretirement, may upon employmentresume membership:



Provided that this provision shallnot apply to members who cease to bemembers under circumstance referredto in paragraphs (a) and (b) of section26(1) of the Act."

83. The principal Act is amended in section 6, bydeleting the phrase "Parastatal Pensions Fund" andsubstituting for it the phrase "PPF Pensions Fund."


"Management 7.-(1) The Board shallof the Fund b 'bl £ the reSpOnsl e or e Management

and control of the Fund in accordancewith the provisions of this Act andRegulation made under this Act anddirectives, guidelines and Regulationsissued under the Social Security(Regulatory Authority) Act.

(2) The Board shall submit tothe Authority annually, financial andother reports 011 the activities of theFund as required by the Authority forefficient management of the Fund,regulation and monitoring of theactivities of the Fund.

(3) Financial reports undersubsection (1) shall contain-

(a) financial position of theFund at that time;

(b) entries made day to day ofall sums of money receivedand expended by the Fundand matters in respect ofwhich the receipt andexpenditure takes place;


Amendment. of section 8Cap 434

(C) the assets and liabilitiesof the Fund; and

(d) other information as maybe required by theAuthority. "


"Appointment 7A.-(1 ) There shall be aof the D' Ge lb' d bDirector lrector nera to e appomte yGeneral the President.

(2) The Director Generalshall be the Chief Executive Officerof the Fund and be responsible foroverseeing the daily operations ofthe Fund and shall be the Secretaryto the Board.

(3) The Director Generalshall hold office for a term of fiveyears and may subject to satisfactoryperformance, be eligible for re-appointment.

(4) The Board may, withthe consent in writing of theMinister, appoint such other officersand employees of such designationas it considers necessary for theefficient conduct of the business ofthe Fund and upon the salaries andother temlS and conditions as maybe determined by the Board."


(a) repealing subsections (1) and (2) andsubstituting for them the following newsubsections:

"( 1) The rate of amember's contribution to theFund shall be determined by the


Amendmentof section II

Board subject to theprovisions of the SocialSecurity (RegulatoryAuthority) Act.

(2) An employer of amember shall, contribute tothe Fund the amount ofmoney as may be determinedby the Board subject to theprovisions of the SocialSecurity (RegulatoryAuthority) Act in respect ofthe member."

(b) adding immediately after the word "shall"appearing in subsection (3) the phrase" subjectto the rules as may be prescribed by theAuthority" .

(c) adding immediately after subsection (3) thefollowing new subsections:

"(4) The employer shall remitcontributions based on the basicsalary of an employee who is onsuspension or interdiction."

87. The principal Act is amended in section 10, bydeleting the word "parastatal" wherever it appears insubsection (2) and substituting for it the word "employer."


(a) re-designating section 11 as section 11(1);and

(b) adding immediately after the re-designatedsubsection (1) the following new subsection:

"(2) The officer of the Fundauthorized by the Director Generalshall have the power to demand and




inspect the records of the employerand the employer shall be obliged togive access to the records.

(3) A refusal by theemployer to allow an officer of theFund to access records shallconstitute an offence".

89. The principal Act is amended in section 12, bydeleting the phrase "this Act" appearing at the end of thatsection and substituting for it the phrase "of this Act andSocial Security (Regulatory Authority) Act."

90. The principal Act is amended in section 13, bydeleting the phrase "any directions of the Minister"appearing in the first line of subsection (1) and substitutingfor it the phrase "investment guidelines issued by the Bankunder the Social Security (Regulatory Authority) Act.".


"Investmentprocedure

13A.-(1) The Boardshall, subject to the provisions ofsection 13 of this Act,regulations and investmentguidelines or directions issuedby the Bank under the SocialSecurity (Regulatory Authority)Act, invest the money of theFund in any economically viableventure it considers appropriate.

(2) The Board shall, indetermining the appropriatenessof the venture to invest in, takeinto account the economic andcommercial viability of thatventure.

Amendmentof section J 4

(3) Where an investmentis made in breach of subsection(1), the Board Director ormanager of the Fund who tookpart in the decision to investshall be personally liable to apenalty or fine of as prescribedunder the Social Security(Regulatory Authority Act).

(4) Notwithstanding apenalty which may be imposedin terms of subsection (3), theBank shall have power to-

(f) require the Fundto comply withthe proceduresand prudentialguidelines forinvestment;

(b) discontinue theinvestment; or

(c) take other measuresas may beappropriate."

92. The principal Act is amending in section 14, by-

(a) deleting the phrase "balance sheet"appearing at the closing statement ofsubsection (1) and substituting for it thephrase "statement of net assets available forbenefits" .

(b) repealing subsection (2), and substituting forit the following new subsection:

"(2) The accounts includingthe statement of net assets availablefor benefits of the Fund relating to thefinancial year shall, not later than

Amcndnlcnlofsectiol\ 16


three months after the close of everyfinancial year, be audited by theController and Auditor~General."

adding immediately after subsection (4) thefollowing new subsection:

"(5) The scheme shall,subject to the provisions of theSocial Security (RegulatoryAuthority) Act, submit to theAuthority and to the Bank a copyof the audited statement ofaccounts together with a copy ofthe report made by the auditor".

93. The principal Act is amended by repealing section16and substitutingfor it the following:

"Evaluation 16A.-(I) The Boardof the Fund shall, at intervals of three yearsCap.I35 or at any other intervals as the

Authority may direct, cause theassets and liabilities of the Fundto be evaluated by an actuarial.

(2) A report of theevaluation carried out inaccordance with subsection (I),shall be submitted to theAuthority and the Minister."

(3) Based on the report,the Authority may direct theFund to take measures as maybe necessary to rectify ananomaly revealed by the report."

94. The principal Act is amended in section 17, bydeleting the phrase "the Parastatal. Pensions Fund"appearing in subsection (I) and substituting for it thephrase "PPF Pensions Fund".





95. The principal Act is amended in section 18, byadding immediately after paragraph (f) the following newparagraph:

"(g) to do such acts and things as the Authoritymay direct for efficient management of theFund."


(a) re-designating section 20( 1) as section 20;and

(b) repealing subsection (2).

97. The principal Act is amended in section 22, byadding the phrase "and the Social Security (RegulatoryAuthority) Act" at the end of paragraph (d).


(a) repealing subsections (1) and (2) andsubstituting for them the following newsubsections:

"(1) A member may elect to retirefrom the service after he has attainedthe age of fifty-five years which is theage of voluntary retirement.

(2) Notwithstanding subsection(1), a member shall not be permittedto continue in the service onpensionable terms after attaining theage of sixty years which is the age ofcompulsory retirement."

(b) adding immediately after subsection (3), thefollowing new subsection:

"(4) An employer mayremit the members' contributions atleast six months in advance before thedate of the member's compulsory




Repealing ofsection 30

retirement and to ensure that arrearsof contributions or additionalcontributions are paid to the Fundprior to the member's retirementdate."


"Pension asof right

25. Except for collateral,home mortgage or an order ofany competent court for theperiodical payment of sums ofmoney towards the maintenanceof dependants of the member towhom the periods or gratuity hasbeen awarded, pension, gratuity,survivor's benefit or any otherbenefits conferred to a memberor his dependants under this Actshall be payable as a matter ofright and no person or authoritymay reduce, withhold or freezesuch benefits."

100. The principal Act is amended in Section 27(1),by renaming paragraph (c) as paragraph (b).

101. The principal Act is amended in section 28, byadding the phrase "and the provisions of the Social Security(Regulatory Authority) Act," immediately after the word"Act" appearing in the first line of subsection (1).

102. The principal Act is amended by repealing section30 and substituting for it the following provision:


Amendmentof section 33Cap. ] 35

"PensionwhereservICe ISterminatedon publicinterest

30. Where an officer's serviceis terminated and having regard to theconditions of the Public Service, theusefulness of the officer and all thecircumstances of the case, suchtermination is desirable for publicinterest, the Officer whose service isterminated shall be granted benefits notexceeding the amount which the officerwould be eligible of if he retired fromPublic Service in the circumstancesdescribed in pamgraph (e) of section26"

103. The principal Act is amended in section 31, bydeleting the proviso to that section and substituting for it thefollowing new proviso:

"Provided that his pensionable emoluments for thepurposes of this section shall be those which are taken forcomputing his pension in the public service."


(a) re-designating section 33 as section 33(1);and

(b) adding immediately after the re-designatedsubsection (1) the following new subsection-

"(2) Where a member hasconsented in writing, the pension orgmtuity shall be used-(a) as a collateral security in

accordance with theprovisions of section 38 ofthe Social Security(Regulatory Authority) Act;and

(b) in discharging a debt due tothe employer."




105. The principal Act is amended by deletingproviso to section 34 and substituting for it the following-

"Provided that the payment under thissection shall not be less than the aggregate of themember's and employer's contributions to theFund with interest at the rate to be detennined bythe Authority".

(a) deleting the definition of "annual pensionableemolument" and

(b) deleting the words "ten thousand" appearing insubsection (3) and substituting for them thewords "hundred thousand."

106. The principal Act is amended by repealingsections 35 and substituting for it the following provisions:

"Presidentmay exemptfrom certainconditions

35.-(1) A member who is apublic officer may by application tothe President, supported by anaffidavit and on the recommendationof a specified authority, apply forexemption from the application tohim of any condition under this Act.


(a) in relation to a publicofficer serving undera district or regionaladministration, theRegionalAdmini strativeSecretary;

Repealing ofsection 37 and44Amendmentof section 38


(c) in relation to a publicofficer serving in anextra-MinisterialDepartment, the Headof the Department;and

(d) in relation to a publicoffice serving in alocal governmentauthority, the CityDirector, MunicipalDirector or DistrictExecutive Director.

(3) Upon recommendationby the specified authority, theapplication shall be submitted bythe specified authority to theAuthority for determination andrecommendation to the Presidentin terms of section 38A of theSocial Security (RegulatoryAuthority) Act.

(4) President may grant theexemption if he is satisfied thatthe application of such conditionunder the Act to a member who isa public officer would unfairlydisqualify that member from grantof benefits."

107. The principal Act is amended by repealingsections 37 and 44.

108. The principal Act is amended in section 38, bydeleting paragraphs (b), (c), and (d) and substituting forthem the following new paragraphs-




"(b) where the deceased member was a female,the husband of such deceased member;

(c) any legitimate or legally adopted child whois unmarried and is not gainfully employedand has not attained the age of eighteenyears;

(d) being of the age of eighteen years or above,but is incapable of self support due to mentalor physical disability; and

(e) immediate parents of the deceased member."

109. The principal Act is amended in section 40, byrepealing subsection (4) and substituting for it thefollowing:

"(4) The payment of survivors benefitshall cease upon expiry of three years from the datefollowing the date of death of the deceased memberor on the recipient's death, except in the case of anydependant child, the payment shall cease upon suchchild attaining the age of eighteen."

(a) adding immediately after paragraph (e) thefollowing new paragraph:

"(f) fails without lawfulexcuse to fill and submit to the Fundthe claim form in respect of amember whose benefits are due;" and

(b) renaming paragraphs (f), (g) and (h) asparagraphs (g), (h) and (i).


(a) deleting the word ~'magistrate" whichappears in of subsection (1) and substitutingfor it the phrase "court of competentjurisdiction; and


Amcndmentof section 50

(b) numbering the contents of second paragraphof subsection (1) as subsection (2).

112. The principal Act is amended by repealingsection 47 and substituting for it the following-

"Recovery ofcontributions

47.-(1) Any action for recoveryof contributions under section 45 maybe instituted by the Board of Trustees,and where an action is institutedbefore any court, any officer of theFund or an advocate appointed by theFund in that behalf may appear andconduct the proceedings.

(2) Every statutorycontribution due to the Fund may berecovered by a summary suit underorder XXXV of the Civil ProcedureCode at any time within twelve yearsafter the date on which it is due.

(3) Where an offence iscommitted by reasons of non-paymentof statutory contribution, noprosecution shall be commencedwithout the consent of the Director ofPublic Prosecutions."

113. The principal Act is amended by repealingsection 50 and substituting for it the following newproVISIOn:

"Protection ofContributions

50. Notwithstanding anythingto the contrary contained in any otherwritten law, where any judgment orOrder is made against a membersubject to the provision of section 33,no execution, attachment or process ofany nature shall be issued againstcontributions of that member."



Repeal ofsection 56


Amendmentof theSchedule

114. The principal Act is amended in section 51, byrepealing subsection (5).

115. The principal Act is amended in section 55, bydeleting the word "one" appearing in the third line andsubstituting for it the word "done".


117. The principal Act is amended in section 57, byinserting immediately after the word "may" appearing in thefirst line the words "in consultation with the Authority."

(a) deleting item 1 and substituting for it thefollowing new item:"1 .-(1) The Board shall consist of -

(a) a Chairman who shall beappointed by the President;

(b) two members representingorganizations of employees themajority of whom are membersto the Fund;

(c) two members representing themost representative employersorganization;

(d) a representative of the Ministryresponsible for finance;

(e) a representative of the AttorneyGeneral; and

(f) a member representing privatesector appointed amongstpersons with knowledge andexpense in Social Security.

ConstructionCap.B5


"(2) Subject to sub-item (l)the Minister shall in appointingmembers of the Board, ensure that allmembers are proper and fit personsfor performing advisory functions ofthe Board under the provisions of thisAct, regulations made thereunder.

(b) deleting paragraph 6 and substituting for itthe following new paragraph:

"Sccrctar\' 6.-(1 ) Theto the I)· G 1 hBoard lrector Jenera t e

Fund shall be thesecretarv to the Board.

(2) TheSecretary to the Boardmay take part in theproceedings of theBoard but shall nothave the right to vote."

(e) inserting the words "and the SecretalY"immediately after the word "Chairman"appearing in the second line of paragraph 10.

PART VIAMENDtvIENTOF THE PuBLIC SERVICE Rr!l[REMENT BENEFITS

ACT, (CA1'371)

119. This Part shall be read as one with the PublicService Retirement Benefits Act, hereinafter referred to as the"principal Act."

120. The principal Act is amended in section 2 byrepealing that section and substituting for it the followingnew section:

"Application 2. This Act shall applyto a person employed in formal orinformal sector who has not been


registered or insured under anyother written law."


(a) inserting in their respective alphabeticalorder the following new definitions:

"Authority" means the Social Security RegulatoryAuthority established by section 4 of theSocial Security (Regulatory Authority) Act;

"actuarial" means a person trained to understandrisks and probabilities and to apply suchskills to the financial problem especial thoseinvolving uncertain future events suchhuman mortality and mobility and is amember of an institute, society or associationof actuaries approved by the Authority.

"actuarial valuation" means valuation of assets andliabilities of a scheme of the Fund made byan actuarial;


"administration expenses" means all cost incidentalor in relation to registration of members,collection of members' contributions anddisbursement of members' benefits;


"formal sector" means the sector which includeemployers and employees who have enteredinto contract of employment orapprenticeship or any other contract;

"informal sector" means the sector which includeworkers who work informally and who donot work in terms of an employment contractor any other contract;

(b) deleting the definition of the words"employee";"member" means a person employed in the formal

or informal sector within MainlandTanzania, but does not include a person whohas been registered or insured under anyother written law."


employment; or(b) has entered into any other contract in

which the individual undertakes towork personally for the other party tothe contract the other party is not aclient or customer of any profession,business, or undertaking carried on bythe individual; or

(c) is deemed to be an employee by theMinister under section 98(3) of theEmployment and Labour Relations Act;

(d) is deemed to be an employee inaccordance with section 61 of theLabour Institutions Act;

"member" means any employee employed in theformal or informal sector within MainlandTanzania, excluding any person who has beenregistered or insured under any other writtenlaw;

"salary" means gross salary of the member payableto an employee in consideration of the servicerendered under the contract of service orapprenticeship or any other form of office ofcall, excluding bonus, commission, cost ofliving allowance, overtime payment, Director'sfees or any other additional emoluments;"



"self employed" means a person who does not workin terms of contract of employment orapprenticeship or any other contractcontemplated in the definition of the termemployee".

(c) deleting the word "Civil" appearing in thedefinition of the word" Service.

122. The principal Act is amended in section 5, byrepealing that section and substituting for it the following:

"Membership 5. An employee in formal andofthe scheme informal sector who is not registered

as a member or insured person underany other scheme may become amember of the Fund under this Act."

123. The principal Act is amended by repealingsection 6 and substituting for it the following provisions:

"Compulsorycontribution

6.-(1) The rate of amember's contribution to the Fundmay be recommended by the Boardsubject to the provisions of section25 of the Social Security(Regulatory Authority) Act.

(2) An employer of amember shall, contribute to theFund the amount of money as maybe determined by the Board subjectto the provisions of section 25 ofthe Social Security (RegulatoryAuthority) Act in respect of themember.

(3) The contribution of amember and of the employer to thepension, gratuity or other benefitsshall, to the extent that a memberretires in accordance with theprovisions of section 16, be of right.




(4) An employer of a non-citizen shall remit contribution forthat employee in accordance withthe provision of this Act."

124. The principal Act is amended in section 11, byrepealing subsection (3):

125. The principal Act is amended in section 12, byrepealing subsection (2) and substituting for it the followingnew subsection-

"(2) Where a member dies in service, hisdependants shall be entitled to a funeral grant at arate prescribed in the Regulations made under thisAct."l25A. The principal Act is amended in section 16,

by adding the following new section:

"Penaltyforpaymentof benefits

16A.-(I) An employershall, within six months beforethe date of retirement of hisemployee, notifY the Fund Inwriting about the date ofretirement of his employee.

(2) The Fund shall ensurethat, within sixty days followingthe date of notification ofretirement, pay to the member thedue retirement benefits.

(3) Where the Fundfails to pay retirement benefits toa member within a periodspecified under sub-section (2),and the member is not responsiblefor that failure, the Fund shall paythe member the principal sum thatis due for payment as retirement



benefits plus a penalty of fifteenpercent of that sum per annum."


(a) deleting the "semi-colon" and the word "or"appearing item (ii) of in paragraph (b) andsubstituting for it a "full-stop."

(b) deleting paragraph (c).

The principal Act is amended by repealingand substituting for it the following new

127.section 27proVISiOns:

"Presidentmayexemptfromcertainconditions

27.-(1) A member who is apublic officer may by application tothe President, supported· by anaffidavit and on the recommendationof a specified authority, apply forexemption from the application to himof any condition under this Act.


(a) in relation to a publicofficer serving under adistrict or regionaladministration, theRegional AdministrativeSecretary;

(b) in relation to a publicofficer serving in aMinistry, the PermanentSecretary;

(c) in relation to a publicofficer serving ill anextra -MinisterialDepartment or public

institution, the Head ofthe Department or thepublic institution; and

(d) in relation to a publicofficer serving in a localgovernment authority,the City Director,Municipal Director orthe District ExecutiveDirector.

(3) Upon recommendation bythe specified authority, theapplication shall be submitted by thespecified authority to the Authorityfor determination andrecommendation to the President interms of section 38A of the SocialSecurity (Regulatory Authority) Act.

(4) President may grant theexemption if he is satisfied that theapplication of such condition underthe Act to a member who is a publicofficer would unfairly disqualify thatmember from grant of benefits.



"Managementof the Fund

33. The Board shall beresponsible for the managementand administration of the Fund inaccordance with the provisions ofthis Act, regulations made underthe Act, the Social Security(Regulatory Authority) Act, andregulations made by the Minister






responsible for Social Securityunder the Social Security(Regulatory Authority) Act andany guidelines and directives asmay be prescribed by theAuthority for better regulation andmonitoring of the activities of theFund."


"(4) The Director General shall hold officefor a term of five years and may, subject tosatisfactory performance, be eligible for re-appointment. "

130. The principal Act is amended in section 36, bydeleting the opening phrase and substituting for it thefollowing:

"The Minister may, in consultation with theAuthority make regulations."

131. The principal Act is amended in section 37, byinserting immediately after paragraph (d) the following newparagraph:

"(e) any other lawful income."

132. The principal Act is amended in section 39, bydeleting the word "wages" appearing in the first line ofsubsection (1) and substituting for it the word "salary."

132A. The principal Act is amended in section 41 by-

(a) adding immediately after subsection (2) thefollowing new subsections:

"(3) The employer may opt tocontribute a greater rate than theamount stipulated in subsection (2).



(4) Where the employer agreesto contribute at a greater rate,such option shall not apply to amember whose contribution rateat any given time does notexceed fifty percent of hiscontributions." and

(b) renumbering subsections (3) and (4) assubsections (5) and (6).

133. The principal Act is amended in section 48, byinserting the words "and the Authority" immediately afterthe word "Minister" appearing in subsection (3).


(a) re-designating section 50:as subsection50(1);

(b) adding immediately after the re-designatedsubsection (1) the following newsubsections:

(2) The Board shall annually orat such other times as the Authority mayrequire submit to the Authority financialreport and other reports on the activities ofthe Fund, as necessary for bettermanagement of the Fund, regulation andmonitoring of the activities of the Fund.

(3) Financial reports referredto under subsection (1) shall contain-(a) financial position of the Fund

at that time;(b) assets and liability;(c) results of the fund's

operations;(d) statement of cash flow;(e) other information as may be

required by the Authority."



135. Thesection 51 andprovision:

"Evaluationof the Fund

principal Act is amended by repealingsubstituting for it the following new

24A.-(1) The Board shall, atintervals of three years or at any otherintervals as the Authority may direct,cause the assets and liabilities of theFund to be evaluated by an actuarial.

(2) A report of the evaluationcarried out in accordance withsubsection (1), shall be submitted to theAuthority and the Minister."

(3) The Authority may, uponthe received of the report submitted to itunder subsection (2) and aftersenstinising that report, direct the Fundto take necessary measure to rectify ananomaly discovered in the report.

(a) repealing subsection (1) and substituting forit the following new subsections:

"(1) The Board shall consist ofthe following members:

(a) a Chairman who shall beappointed by the President;

(b) a representative of the PublicService Management;

(c) a representative of theAttorney General;

(d) a representative of theMinistry responsible forFinance;

(e) two members representingorganizations of employees themajority of whom aremembers to the Fund; and

AmendmentSection 53

Ame.ndmentof section 71

(t) two members representing themost representative employersorganization;"

(2) A member of the Board shallhold office for a term of three years andshall be eligible for re-appointment foranother one term only."

(b) renumbering subsections (2) to (4) assubsections (3) toe5).

(c) deleting figure "(g)" appearing in subsection(3) as renumbered and substituting for it thefollowing new figure (b) to (t)."

(d) adding immediately after subsection (5) asrenumbered the following new subsection:

"(6) The Minister shall, inappointing members ensure that allmembers are proper and fit personsfor performing advisory functions ofthe Board under the provisions of thisAct and regulations made there underand the Social Security (RegulatoryAuthority) Act."

137. The principal Act is amended in section 53, byadding immediately after paragraph (e) the following newparagraph:

"(t) to do all such acts or thing as the Authority maydirect for the purpose of efficient managementof the Fund."

138. The principal Act is amended in section 71, byinserting the phrase "provided that the Director General,Inspector or such other officer is a public prosecutorappointed by the Director of Public Prosecutions" betweenthe words "behalf' and "and".


Con&1:ructionCap. 135




139. The principal Act is amended by-

(a) re-designating section 71 as section 71(1);and(b) adding immediately after the re-designated

subsection (1) the following new subsection:"(2) Any criminal proceedings shall

not be instituted under this sectionwithout the consent of the Director ofPublic Prosecutions."

PART VIIAMENDMENT OF THE SOCIAL SECURITY(REGULATORY

ArmIORTTY) ACT,(CAP. 135)

140. This Part shall be read as one with the SocialSecurity (Regulatory Authority) Act, hereinafter referred toas the "principal Act".

140A. The principal Act is amended in section 3, byinserting in its alphabetical order the following newdefinition:

"administrator" means a person appointed toadminister a scheme in accordance with suchterms and conditions of service as may bespecified in the instrument of appointment".

140B. The principal Act is amended in section 5, by-(a) deleting paragraph (e) and substituting for it the

following:"(e) register, regulate and superviseadministrators;"

(b) deleting the word "all" appearing in paragraph (f).

140C. The principal Act is amended in section 16(1),by inserting the words "or administrator" between thewords "custodian" and "shall".






140D. The principal Act is amended in section 17(1),by inserting the words ",administrator" between the words"managers" and "and".

(a) inserting the words "or administrator" betweenthe words "custodian" and "if' appearing insubsection (1); and

(b) inserting the words", administrator" between thewords "managers" and "or" appearing insubsection (2).

140F. The principal Act is amended in section 20, byinserting the words ",administrator" between the words"managers" and "or" whenever those words appear in thatsection.

141. The principal Act is amended in section 6, byadding immediately after subsection (2) the following newsubse.ction:

"(3) The Authority shall, in exercising its powersunder this section, issue directions in the form of notices,letters, orders or circulars."

142. The principal Act is amended by -

(a) deleting subsection (1) and substituting for it thefollowing new subsection:

"(1) There is established the Board ofDirectors of the Authority to be composed of-(a) a chairman who shall be appointed by the

President;(b) the Treasury Registrar;(c) the Labour Commissioner;





(d) a representative from the AttorneyGeneral;

(e) one member representing the mostrepresentative employers organization;

(f) two members representing the mostrepresentative employees organisation;and

(g) one member from amongst persons whopossess knowledge and experience insocial security matters.

(b) adding immediately after subsection (2) thefollowing new subsection (3);

"(3) The Director General shall be theSecretary to the Board."



"(3) The Director General shall hold officefor a term of five years and may, subject tosatisfactory performance, be eligible for re-appointment. "

145. The principal Act is amended in section 28 bydeleting the word "three" appearing in subsection (4) andsubstituting for it the word "six".


"Minimum 36.-(1) Subject to the provisionsbenefits of this Act, a member of the schemepackages shall have the right to receive and enjoy

minimum benefits or package to beprescribed by the Authority in line withhis contributions.


(2) A member of any of themandatory schemes shall be entitled toshort or long term or both benefits tobe determined and reviewed by theAuthority in consultation with therespective schemes.

(3) The Authority shall, indischarging its regulatory andsupervisory powers with regards totechnical matters on the provisions ofhealth services, consult with theMinister responsible for health."


"RetirementBenefitsCommittee

CapA07,375,50,372 and371

38A.-(1) There IS

established a Committee to beknown as a Retirement BenefitsCommittee whose functions shall beto advise the President on mattersrelating to exemption of applicationof certain conditions on payment oraward of terminal benefits under theLocal Authorities Pensions FundAct, the National Health InsuranceFund Act, the National SocialSecurity Fund Act, the ParastatalOrganizations Pensions Scheme Actand the Public Service RetirementBenefits Act.

(2) The Committee shall becomposed of -

(a) the Permanent Secretary(Establishment), who shallbe the Chairman;

(b) the Deputy AttorneyGeneral;



(c) the Director General;(d) the Labour Commissioner;

and(e) a member representing an

organization ofemployees.

(3) The application made interms of subsection (1) shall besupported by recommendations by aspecified authority or the lastemployer of the applicant.

(4) The Committee shall,within thirty days from the date ofreceipt of an application conveneand determine that application andmake recommendations to thePresident about whether or not,within the circumstances, theapplication be granted.

(5) Where the President hasreceived recommendations from theCommittee, he may order that theapplicant be granted terminal or anyother benefits which wouldotherwise be lawfully withheld inaccordance with the relevant lawgoverning such terminal or anyother benefits."


(a) inserting immediately after paragraph (b) thefollowing new paragraph-

"(c) annual social security levycharged from the schemes;"

(b) renaming paragraph (d) as paragraphs (e).

149. The principal Act is amended by addingimmediately after section 49, the following sections:


"Socialsecuritylevy

49A.-(1) There shall be a levypayable to the Fund by the schemes.

(2) A levy imposed under thissection shall be based on the totalincome of each scheme at a rate to bedetermined by the Minister uponconsultation with the Ministerresponsible for Finance and the Bankand shall be specified in an orderpublished in the Gazette by the Minister.

(3) The total incomeprescribed under sub-section (2) shall bederived out of the administrative costsof the scheme.

(4) An order made by theMinister shall contain provisions as tothe time during which any amountpayable by way of levy shall becomedue.

(5) Where the levy imposed isnot paid into the Fund on or before thedate prescribed in the order, the amountdue shall become a civil debtrecoverable summarily by the Authorityunder Order XXXV of the CivilProcedure Code,

(6) The Authority may depositwith the Bank or banks as it maydetermine, any monies not immediatelyrequired for the purposes of theAuthority."

150. The principal Act is amended in section 53, bydeleting the word "September" appearing in subsection (1)and substituting for it the word "December".

ConstructionCap.394


PART VITIAMENDMENT OF THE INSURANCE ACT,

(CAP.394)

151. This Part shall be read as one with theInsurance Act, hereinafter referred to as the "principal Act".

152. The principal Act is amended in section 13,

(a) repealing subsections (2) and (3) andsubstituting for them the followingprOViSIOns:

"(2) The Board shall consist ofseven members, the Chairman of which shallbe appointed by the President and not morethan other six members appointed by theMinister, at least two of whom shall hailfrom either part of the United Republic.

(3) Six members shall be appointedfrom amongst persons of ability, integrityand standing who have knowledge andexperience in life insurance, generalinsurance, actuarial science, finance,economics, law, accountancy oradministration and who, in the opinion of theMinister, would be useful and beneficial tothe Authority.

(4) In appointing members of theBoard hailing from Tanzania Zanzibar, theMinister shall make prior consultation withthe Minister of the RevolutionaryGovernment of Zanzibar responsible forfinance. '

(5) For the purpose ofsubsection (3), a person who may beappointed as a member of the Boardshall not be a director, an employee,a shareholder or an agent of anyinsurance registrant."

(b) renumbering subsections (4) and (5) assubsections (6) and (7).

Passed in the National Assembly on the 13th April, 2012.

Documents

PART I · 2014-11-12 · PART I PRELIMINARY PROVISIONS 1. Short title and commencement. 2. Amendment of Social SecurityLaws. PART II AMENDMENT OF THE LOCAL AUTHORITIES PENSIONS FUND