Social Security Schemes (Benefits)

GN. No. 467 (Contd.)

ISSN 0856 – 034X

Supplement No. 31 17th August, 2018

SUBSIDIARY LEGISLATION
to the Gazette of the United Republic of Tanzania No. 33 Vol 99 dated 17 th August, 2018
Printed by the Government Printer, Dodoma by Order of Government

GOVERNMENT NOTICE No. 467 published on 17/08/2018

THE SOCIAL SECURITY (REGULATORY AUTHORITY) ACT,

(CAP. 135)
________

REGULATIONS
________

(Made under section 25A)

SOCIAL SECURITY SCHEMES (BENEFITS) REGULATIONS, 2018

PART I
PRELIMINARY PROVISIONS
1. Citation.
2. Application.
3. Interpretation.
PART II
LONG TERM BENEFITS

4. Qualifying conditions for old age benefits.

5. Retirement age.
6. Termination of employment in public interest.
7. Pension benefit factors.
8. Pension formula.
9. Annual pensionable emolument.
10. Commencement of payment of pension.

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GN. No. 467 (Contd.)

11. Pension indexation.

12. Deferred pension.
13. Special lumpsum.
14. Minimum pension.
15. Reduction factor.
16. Invalidity benefits.
17. Death gratuity.
18. Survivors pension.
19. Basis of survivor pension.

PART III
SHORT TERM BENEFITS

20. Rate of unemployment benefits.

21. Duration of unemployment benefits.
22. Sickness benefit.
23. Rate of sickness benefit.
24. Access to mortgage.
25. Conditions for granting mortgage facility.

PART IV
GENERAL PROVISIONS

26. Offences and penalties.

27. Revocation and saving.

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 Social Security Schemes (Benefits)
GN. No. 467 (Contd.)

GOVERNMENT NOTICE No. 467 published on 17/08/2018

THE SOCIAL SECURITY (REGULATORY AUTHORITY) ACT,

(CAP. 135)
__________

REGULATIONS
__________

(Made under section 25A)

SOCIAL SECURITY SCHEMES (BENEFITS) REGULATIONS, 2018

PART I
PRELIMINARY PROVISIONS

Citation 1.- (1) These Regulations may be cited as the Social

Security Schemes (Benefits) Regulations, 2018.

Application 2.-(1) These Regulations shall, subject to sub-

regulation (2), apply to all schemes operating in Mainland
Tanzania.
(2) Notwithstanding sub-regulation (1), application of
the provisions of these Regulations to the National Social
Security Fund shall be in relation to the benefits, the
Cap. 50 computation of which is not provided for in the National
Social Security Fund Act.

Interpretation 3. In these Regulations, unless the context otherwise

requires -
Cap. 135 “Act” means the Social Security (Regulatory Authority) Act;

“Authority” means the Social Security Regulatory Authority

established under section 4 of the Social Security
(Regulatory Authority) Act;
“annual pensionable emolument” means the emolument which
is taken for the purposes of computing any pension
granted to the member under under the schemes laws;
"commutation" means a process of converting part of
pension amount payable in the future income stream
to present value terms to be paid to a pensioner as a

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lump sum;
"commutation factor" means the actuarial neutral factor
used to calculate pension lump sums at retirement;
“commutation rate” means the rate of pension payable up front
as commuted pension;
“compulsory retirement age or pensionable age” means the age
of sixty years or any other age statutorily provided as
such by any other written law;
"defined benefit scheme" means a type of retirement scheme
in which benefits are pre-determined in an instrument
of establishment of a scheme where individual
contributions are matched with the required
resources to meet the benefit cost for a specific time;
Act No. 2 of 2018 “Fund” means the Public Service Social Security Fund
and Cap. 50
established under the Public Service Social Security
Fund Act and, where the context so requires, the
National Social Security Fund Act;
"mandatory defined benefit schemes" includes-
Cap. 50 (a) the National Social Security Fund or in its acronym
“NSSF” established under the National Social Security
Fund Act; and
Act No. 2 of 2018 (b) the Public Service Social Security Fund or in its
acronomy “PSSSF” established under the Public
Service Social Security Fund Act;
“Minister” means the Minister responsible for social security
matters;
“reduction factor” means actuarial neutral factor reduced from
a monthly pension in lieu of voluntary retirement;
“retirement age” means the age of voluntary retirement or
compursory retirement prescribed in the respective
schemes laws and includes any other retirement age
statutorily provided by any other written law;
"salary" has the same meaning ascribed to it by the respective
schemes laws;
"sectoral minimum wage" means the minimum wage as set
by the respective sectoral minimum wage board;
"scheme" means the mandatory pension schemes in Tanzania
Mainland;
Act No. 2 of 2018 “schemes laws” means the Public Service Social Security Fund
and Cap. 50
Act and National Social Security Fund Act; and
"voluntary retirement age" means the age of fifty five years and
includes any age thereafter prior attaining compulsory

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retirement age or any other age statutorily provided as

such by any other written law;

PART II
LONG TERM BENEFITS

Qualifying 4. A person shall not qualify for old age pension

conditions for old
age pension benefit benefit unless such person has-
(a) contributed to the Fund for the period of not less
than one hundred and eighty months; and
(b) attained the retirement age.

Retirement age 5.-(1) A member may retire-

(a) compulsorily, at the age of sixty years; or
(b) voluntarily, any time upon attaining the age of fifty
five;
(2) A member whose statutory terms of employment
prescribe an age of retirement shorter or longer than the age
provided for under sub regulation (1), shall retire in accordance
with such prescribed terms.

Termination of 6.-(1) A member terminated from employment on

employment in the
public interest public interest prior attaining voluntary retirement age and has
contributed to the Fund for not less than one hundred and
eighty (180) months-
(a) shall be paid commuted pension; and
(b) his pension shall be deferred and payable in
accordance with regulation 11.
(2) A member who is terminated from employment on
public interest prior attaining the age voluntary retirement and
whose contribution period is less than one hundred and eighty
months, shall be entitled to special lumpsum.

Pension benefit 7.-(1) Pension benefit factors to be used in the formula

factors
for calculating full pension shall include-
(a) annual accrual factor of 2.07 per-centum of the
annual pensionable emolument or 1/580 of the
monthly pensionable emolument per month;
(b) commutation factor of 12.5;
(c) commutation rate of 25 per-centum of full pension;
and
(d) monthly pension of 75 percentum of full pension

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divided by 12.
(2) A full pension referred to under subregulation (1)
shall comprise of commuted pension and monthly pension.

Pension formula 8.-(1) Subject to sub reguation (2), pension benefits

under the respective schemes laws shall be calculated as
follows:
(a) full pension-
1/580 x number of months served x annual
pensionable emoluments;
(b) commuted pension-
(1/580 x number of months served x annual
pensionable emoluments) x 12.5 x 25 per-
centum;
(c) monthly pension-
1/580 x number of months served x annual
pensionable emoluments) x 75 per-centum x
1/12.
(2) Notwithstanding sub regulation (1), pension benefit
for a member who joined the Public Service Pension Fund,
GEPF Retirement Benefit Fund and the LAPF Pension Fund
prior to 1st July, 2014, who at the date of commencement of the
Public Service Social Security Fund Act, has attained voluntary
retirement age shall be-
(a) a total of pension benefit attained for the period
ending on the date prior to the commencement of
the Public Service Social Security Fund Act; and
(b) the period commencing on the date of
commencement of the Public Service Social
Security Fund Act to the date of retirement.
(3) Notwithstanding regulation 7 and subregulation (1)
of this regulation, pension benefit for the period ending on the
date prior to the date of commencement of the Public Service
Social Security Fund Act, shall be calculated as follows:
(a) full pension-
1/540 x number of months served prior to the
date of commencement of the Public Service
Social Security Fund Act x annual pensionable
emoluments;
(b) commuted pension-
(1/540 x number of months served prior to the
date of commencement of the Public Service

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Social Security Fund Act x Annual

Pensionable Emoluments) x 15.5 x 25
percentum;
(c) monthly pension-
1/540 x number of months prior to the date of
commencement of the Public Service Social
Security Fund Act x annual pensionable
emoluments) x 75 percentum x 1/12.
(4) The pension beneftit for the period commencing on
the date of commencement of the Public Service Social
Security Act shall, for the months served after the date of
commencement, be calculated using the formula under
subregulation (1).
(5) Monthly pension of a pensioner whose pension
benefit is calculated under this regulation shall be indexed in a
manner prescribed in regulation 11.

Annual pensionable 9. Subject to regulation 8, annual pensionable

emolument
emoluments shall be-
(a) for the purpose of calculating pension pursuant
to regulation 8(1), an average of the highest
three years salaries which a member received
during the last ten years preceding his
retirement, and
(b) for the purpose of calculating pension pursuant
to regulation 8(2), the last salary which a
member received preceding his retirement

Commencement of 10. The payment of pension shall commence on the

payment of pension
month following the month which the member ceased to
receive salary due to retirement.

Pension indexation 11.-(1) Indexation rate for a monthly pension shall be

fifty per-centum of the prevailing inflation rate provided that
inflation rate ranges between one per-centum to ten percentum.
(2) Where inflation rate is above ten pecentum,
indexation rate shall be five pecentum.
(3) Where inflation rate is below one per-centum,
indexation shall not apply for the inflation.
(4) The Minister shall review pension indexation rate
under this regulation after every three years.
(5) Notwithstanding sub regulation (4), the Minister

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may, where he is considers necessary and after taking into

consideration the sustainability of the Fund, review the pension
indexation rate at any time before expiration of period of three
years.

Deferred pension 12.-(1) A member who has contributed to the Fund for
a period of not less than one hundred and eighty months but
has not reached retirement age shall, on termination of service -
(a) due to appointment to a political post where there
is specific arrangement for retirement benefit;
(b) due to retrenchment;
(c) as a result of restructuring of office;
(d) on abolition of public office;
be granted a commuted pension and his monthly pension be
deferred until he attains the age of fifty five.
(2) The commuted and monthly pension payable under
these Regulations shall be calculated in accordance with the
provisions of regulation 8:
Provided that the the deferred monthly pension shall be
indexed pursuant to the provisions of these Regulations until
the date on which the member whose pension was deferred
attains the age of voluntary retirement.

Special lumpsum 13.-(1) Except as otherwise provided in these

Regulations, a member who exits the Fund before qualifying
for pension shall be paid a special lumpsum.
(2) The special lumpsum shall be an amount equal to
the sum of the member’s monthly contributions paid to the
Fund plus an interest calculated in a manner prescribed by the
Authority.
(3) The amount applicable in calculating special
lumpsum shall be compounded annually.

Minimum pension 14.-(1) The minimum monthly retirement pension

payable to a member shall not be less than forty per-centum of
Cap 300 sectoral minimum wage prescribed in accordance with the
Labour Institutions Act for which the pensioner saved prior to
his retirement or the pension a pensioner was receiving before
the commencement of these Regulations, whichever is greater.
(2) The minimum pension under sub regulation (1)
shall not apply to a member who opts for early retirement for
the period before attaining the age of compulsory retirement.

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Reduction factor 15.-(1) A reduction factor of 0.3 per-centum shall be

applied on monthly pension of a member who opts for early
retirement.
(2) A pension reduction factor shall apply on each
completed month before reaching the compulsory retirement
age.
(3) The reduction factor referred to under sub
regulation (1) shall not apply to-
(a) a commuted pension of a member who opts for
early retirement; and
(b) a member whose retirement or exit from
employment was involuntary.

Invalidity benefits 16.-(1) Invalidity pension shall be payable to a member

who-
(a) is terminated from employment due to illness
which is not work related sickness or accident; or
(b) is suffering from a permanent invalidity which is
not resulted from employment related illness or
accident;
(c) is below the age of voluntary retirement; and
(d) has been in service for at least thirty six months of
which twelve months have been contributed in the
year preceding the illness.
(2) The rate of invalidity benefit shall be determined in
accordance with the provision of regulation 8, provided that the
minimum pension shall not be less than thirty per-centum of
annual pensionable emolument devided by twelve payable
monthly.
(3) Invalidity pension shall be indexed in a manner
provided in regulation 11.

Death gratuity 17.-(1) Where a member dies while in service, his

dependants shall be entitled to death gratuity in the following
manner-
(a) special lump sum or annual pensionable
emoluments, whichever is greater, of the deceased
member whose contributing period is less than one
hundred and eighty months; or
(b) commuted pension and survivors monthly pension
which shall be calculated in a manner prescribed in

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these Regulations.

(2) A widow or widower, shall be entitled to forty per-

centum of the death gratuity, and where there are more than one
widow, the amount shall be divided equally among them.
(3) Children of the deceased member shall, subject to
provisions of these Regulations, be entitled to sixty per-
centum of the death gratuity.
(4) where there are no dependant children, the widow
or widower shall be paid 100 per-centum of the death gratuity.
(5) Where there is no widow or widower, the
dependent childern shall be paid 100 per-centum of the death
gratuity.
(6) Where the deceased member has a child or children
attending school, death gratuity shall be split into two halves,
where-
(a) one half shall be used to cover education benefit to
be administered by the scheme; and
(b) the other half shall be distributed equally among
the survivors.
(7) Notwithstanding the provisions of subregulations
(2) and (3), the Court may, after taking into consideration of
the needs and best interest of the widow or widower as the case
may be and the children concerned, vary the distribution of
death gratuity provided that, in so doing, the Court shall assign
reasons for such variation.

Survivors pension 18.-(1) Survivors pension shall be paid to dependants

of the deceased member who has contributed to the Fund for a
period of not less than one hundred and eighty months.
(2) Survivors pension shall be calculated in accordance
with the provisions of regulation 8(1)(c).

Basis of survivor 19.-(1) Survivors pension shall be payable on the

pension
following basis-
(a) in the case of the widow or widower who at the
date of death is 45 years of age or above or who is
under the age of 45 years and has the care of
dependent children under the age of 15 years, for
life or until re-marriage;

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(b) in the case of child under the age of 21 years

receiving full time education or a child under the
age of 18 years, as the case may be, shall be paid
60 percentum of the pension to be divided equally
among the children.
(2) Where the deceased member is not survived by
widow or widower, 100 per-centum of the pension shall be
divided equally among the dependent children.
(3) Without prejudice to the respective schemes laws,
where the deceased member is not survived by dependent
children or dependent spouse, 100 percentum of the pension
shall be paid to the parents of the deceased for life.
(4) The entitlement amount prescribed under sub
regulation (1) shall be paid in compliance with the procedures
of the court relating to distribution of deceased property or
estate.
PART III
SHORT TERM BENEFITS

Unemployment 20. Unemployment benefit shall be payable on monthly

benefits
basis at the rate equivalent to 33.3 percentum of the salary
earned at the time of ceasing to be employed.

Duration of 21.-(1) The unemployment benefit shall, unless a

unemployment
benefits member secures another employment, be paid for a maximum
period of six months within twelve months:
Provided that unemployment benefit shall not be paid
for a period exceeding an aggregate of eighteen months for
entire employment circle or career.
(2) Where the period for which a member is entitled to
receive unemployment benefit pursuant to subregulation (1)
expires and the member has not secured another employment
within eighteen months after the date of expiration of the
period of receiving unemployment benefit, he may apply to the
Director General to convert his contribution into supplementary
scheme of his choice.
(3) The member whose contributions are converted
under sub regulation (2) may continue to contribute to the
supplementary scheme subject to the trust deed or rule
governing the respective scheme.
(4) Where such member’s contributions are converted
to a supplementary scheme, the amount to be converted shall

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be special lump sum minus total amount of unemployment

benefit accessed.
(5) Notwithstanding sub regulation (2), a member
whose contribution period is below eighteen months shall,
upon ceasing to be employed, be entitled to a payment of fifty
per-centum of the total contribution.
(6) Where the member has not secured another
employment within eighteen months after the date of expiration
of the period of receiving a payment of fifty per-centum of the
total contributions, such member may apply to the Director
General to convert his remaining contribution into
supplementary scheme and he may continue to contribute to the
supplementary scheme subject to the trust deed or rule
governing the supplementary scheme.
(7) The amount to be converted to supplementary
scheme shall be computed as special lump sum minus the
amount paid under sub regulation (6).

Sickness benefit 22.-(1) The sickness benefit shall be payable to a

member who-
(a) is suffering from a sickness or accident which is
not resulted from employment injury for more than
three months, and the employer has exercised his
Cap. 366
Cap. 298
obligation in accordance with Employment and
Labour Relations Act or the Public Service Act, as
the case may be, to pay him a half salary for a
period of three months prior to termination from
the employment;
(b) is under the age of voluntary retirement; and
(c) has contributed to the scheme for at least thirty six
months of which twelve months contributions have
been made in the year preceding the sickness.
(2) The Fund shall pay sickness benefit under these
Cap 366 Regulations after the first 63 days of sick leave payabable in
accordance with employment and labour relations Act and shall
be payable for a maximum period of three months.

Rate of sickness 23. The rate of sickness benefit shall be forty per-
benefit
centum of the monthly salary enjoyed by the member prior to
the sickness.

Access to mortgage 24.-(1) Subject to sub regulation (3) and the procedure

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laid down in the operational manual of the respective schemes,

a member may use part of his benefit entitlements as collateral
for home mortgage.

(2) The amount to be accessed for home mortgage shall

not exceed fifty per-centum of-
(a) special lumpsum, for a member who has
contributed to the Fund for a period of less than
one hundred and eighty months; and
(b) entitlement of pension, for a member who has
contributed to the Fund for a period of not less than
one hundred and eighty months.
(3) For the purpose of this regulation, schemes shall
enter into agreement with commercial banks for the provision
of home mortgage.
Conditions for 25. Subject to other conditions governing home
granting mortgage
facility mortgage, a member may access home mortgage facility if he
fulfils the following conditions-
(a) he is a member of a scheme;
(b) he has contributed or deemed to have contributed
to a scheme for at least ten years;
(c) repayment of the facility shall not go beyond the
member’s compulsory retirement age; and
(d) he is a Tanzanian citizen.

PART IV
GENERAL PROVISIONS
Offences and 26.-(1) Any scheme or peson who contravenes any
penalties
provision of these Regulations commits an offence and shall be
liable to penalty as stipulated under the Act.
(2) Notwithstanding the penalty imposed under sub
regulation (1), the Authority may-
(a) where the offence is committed by the scheme,
direct such scheme to comply with these
Regulations;
(b) where the offence is committed by an officer,
member of management or trustee, recommend for
disqualification to the respective appointing
authority of such officer, member of management
or trustee;
(c) take any other necessary measure it considers

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appropriate for the better implementation of these

Regulations.

Revocation and 27.-(1) The Social Security Schemes (Pension Benefits

saving
Harmonization) Rules, 2017 are hereby revoked.
(2) Notwithstanding the revocation of the Social
Security Schemes (Pension Benefits Harmonization) Rules,
2017, transaction, claim or directive made or issued prior to the
commencement of these Regulations shall not be affected.

Dodoma, JENISTA J. MHAGAMA

……………, 2018 Minister of State, Prime Minister's Office
Policy, Parliament, Labour, Youth, Employment
and Persons with Disability

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