Building Integrated Social
Security/Protection in Tanzania
Irene C. Isaka,
Director General
International Social Protection Conference,
15th – 17th December ,2014; Arusha
Structure of the presentation
1.
2.
3.
4.
5.
6.
Adopted Definition of Social Protection
Structure of Social Security System of Tanzania
Intruments for implementation
Extension Strategy
Key Actors
The role of Government, Stakeholders and
Public
7. The way Forward
Definition
of Social
Security
/Protection
• The protection measures which
society provides for its members,
through a series of public
programmes against economic
and social insecurities that
would otherwise be caused by
the stoppages or substantial
reduction of earnings resulting
from
sickness,
maternity,
employment
injury,
unemployment, disability, old
age, death, the provision of
medical care subsidies for
families with children.
Structure of Social Security in Tanzania
(SSP 2003)
This constitutes provision of services such as
primary health; primary education, water, food
security and other services on a means tested
basis. These services are usually financed by
the government and Non Governmental
Organisations (NGOs.)
1
2
3
These are usually compulsory and contributory schemes financed
by both employer and employee during the working life for
terminal and short-term benefits.
The schemes under this tier include personal
savings, co-operative and credit societies,
occupational pensions schemes and private
schemes; managed by employers,
professional bodies, community based
organizations and other private sector actors.
Building Sustainable Social Protection
System
• Progressive realization of higher level of
protection
Voluntary insurance
Mandatory social insurance/social security benefits
of guaranteed levels for contributors
THE FLOOR: Four essential guarantees
Access to essential health care for all
income security
children
assistance
unemployed and poor
income security
elderly and disabled
Guiding principles
• Equality national and
non nationals men&
women
• Solidarity –individual
right to social security
protection for all human
beings
• Compulsory
affiliation(compulsory vs
voluntary coverage)
• General responsibility of
the state derived from
human nature of ss
&democratic
management-financing
through contributions
Solidarity
• Applies to financing
techniques irrespective
of the approach (full,
partial, pay-as-you go,
taxation or combination
of those).
• Collective financing is
indispensable to ensure
that the most vulnerable
categories enjoy real
access to social
protection they require
Policy framework for adequate
social security/protection for all
– Universality – formal and informal sector
should be provided with an opportunity
to participate in social security schemes
– Progressiveness - provision of basic
benefit package should progressively be
improved as national resources allows
– Pluralism
– Outcome focus
Financing Mode;
Financing principles with institutional implications
Delivery
mechanisms
General
government
Public entity
Regulated
Private agent
Tier/pillar 1
Tier/pillar 2
Tier/pillar 3
High
General
tax
Vertical
Crosssubsidy
DECREASING
willingness to pay
INCREASING willingness to pay
Earmarked
tax
Mandatory
insurance
User fees
Private
insurance
Low
Low
income
High
Protection of members rights
• Benefits and poverty protection as a right:
Entitlements to benefits should be specified in a precise
manner so as to represent predictable rights of residents
and/or contributors; - the role of SSRA in setting minimum
benefit package
• Collective “actuarial equivalence” of contributions
and benefit levels: The benefits to be received by scheme
members should represent both a minimum benefit
replacement rate and a minimum rate of return in case of
savings schemes, which in turn must adequately reflect the
overall level of the contributions paid; such minimum levels
should be effectively guaranteed, preferably by the State.
Protection of members rights
• Sound financing: Schemes should be financed in such a
manner as to ensure to the furthest extent possible their longterm financial viability and sustainability, having regard to the
maintenance of adequate fiscal space for the national social
security systems as a whole and individual schemes in
particular.
• Responsibility for governance: The Government should
remain the ultimate guarantor of social security rights,
while the financiers/contributors and beneficiaries should
participate in the governance of schemes and
programmes.
Main Instruments to implement the
Social Security policy in Tanzania
The National Social
Protection Policies –
e.g. Social Security,
Children, Elderly,
Disability, Health and
Education Policy.
Instruments for
Income Security is
mandated to
Social
Security/Protection
Reform Program
Social Security
(Regulatory Authority)
Act no 8 of 2008 as
amended
With focus of
Extending Coverage
to Non Covered
Populations
Extension for Social
Security Coverage
Strategy and
Communication
Strategy
Extension Strategy
Extending social security provisions to
reach all Tanzanians;
Objective
of the
Strategy:
Creating an environment where every
Tanzanian will be able to access social
security services;
Increasing scope and adequacy of
benefits that will be available; and
Increasing knowledge and general
awareness of Tanzanians on the issues
of social security including their rights
and obligations
Key actors
Government Ministries including Local Government
(PO, PMO, MoLE, MoF, MoHSW, PMORLAG and MoET)
Institutions, Departments, Schemes and Programmes (Social Walfare,
TASAF, NSSF, PPF, CHF, NHIF, PSPF, LAPF and GEPF
Non Governmental Organisations Local and International
International Community and Development
Partiners
Workers, employers and Beneficiaries
GOVERNANCE HIGH LEVEL
Ministry
responsible for
scheme
Appointment of
trustees,
performance
oversight
Ministry
responsible for
Social Security
SSRA
Legislation, policy formulation,
issuance of regulations and orders
Registration, Issuance of
guidelines, inspection&
supervision
Scheme trustees
Translation of legislation,
strategic planning, approval of
internal policies
Scheme
management
Implementation of policies,
guidelines and strategic plan
The Role of Government
Policy
Financing
Governance
Primary responcibility
to ensure access to
social security to all
Citizens
Ensuring the
Financial, Fiscal and
economic
Sustainability
Monitoring and
Evaluating the
System
Appropriate Policy, legal
and institutional
Framework
Appropriate Financing
Mechanisms
Policy coherence with
other development
policies
Consultation with
Stakeholders
Consultation with
Stakeholders to ensure
economic and social
adequacy in public and
private schemes
Work closely with
stakeholders, promote
their participation to
ensure good governence
principles are applied all
the time
The role of Stakeholders (Social Partners)
• Building Public Support
• Actively Participate in Social Protection Process
• Contributiong to inovative solutions to address
economic shocks and vulnerabilities specific to
the nation as part of development process.
• Actively participate in the governence of the
social security/protection schemes and
programmes both for contributory and non
contributory schemes
The role of Development partners and
International Community
Support the
Where relevant and
development of
necessary provide
macroeconomic
financial support to
Facilitate the
frameworks and
put in place social
exchange of
Policies =
protection system
Information and
formulation,
with gradual
Experience from implementation and
phasing out for
different countries monitoring of the government to take
and societies
national policies
the responsibility
Experience
Sharing =
Role of MOLE is to blend these societal
groups for better SS System
Government
involvement
–financing
the system
Members of
Public:
Tax/contributi
on acceptance
for public
participation in
the system
Political buy in –
to make rules
and regulations
for the system
MOLE is Mandated to Blend this up in
building sustainable social security system
for all Tanzanians
The way forward
Continual to Implent the Social Security Policy and
Reform Programme through the
• Extesion of Coveragy Strategy
• Continuoe to work on the legal framework for
better participation and benefit of the population
• Schemes for Informal sector including noncontributory schemes targeting the most
vulnerable groups (The Elderly, Children and Poor
families)
THANKS FOR YOUR KIND
ATTENTION
Social Security/protection for