SOCIAL security funds have been called upon to start strong sensitization campaigns aimed at attracting more members to join the financial saving entities.
Opening a meeting of the Public Sector Pension Fund (PSPF) stakeholders in Dar es Salaam on Wednesday, former president Ali Hassan Mwinyi said that it was only two per cent of all Tanzanians who are currently members of Pension Funds.
“You should help more Tanzanians to join these funds to enable them to live better lives after retirement, when in sickness or when physically impaired,” said Mr Mwinyi.
Security Funds in Tanzania include the National Social Security Fund (NSSF); the Public Service Pensions Fund (PSPF); the Government Employees Pension Fund (GEPF); the Local Authorities Pensions Fund (LAPF) and the Parastatal Pensions Fund (PPF).
He advised PSPF to critically decide on the mode to pay final benefits to members to help them do savings that guarantee them financial security.
Mr Mwinyi advised pensioners to use their final benefits wisely, cautioning them not to use the money as business capital, because business may collapse and plunge them into abject poverty.
He also advised PSPF leaders to plan alternative ways of generating more income that could eventually benefit their members in terms of better remunerations and benefits.
According to president Mwinyi, PSPF members should be paid their dues on time, because past experiences have shown that retirees were finding it difficult to get their benefits early and this could rightly be facilitated if pensioners’ documents are well preserved.
Earlier, the Deputy Minister of Finance Mr Adam Malima, said that pensioners should keep their records, to avoid confusion when they start processing their final benefits.
Welcoming President Mwinyi to open the meeting, Mr Malima said that the government will pay back money it had received from PSPF as per the agreement, to enable other sectors and private benefit from such loans.
He urged employers to remit contributions of their employees on time, to avoid embarrassment when a worker goes on retirement.