President John Magufuli has already approved the Public Service Social Security Act, 2018 which seeks to merge all pension funds and remain with just two, Deputy Speaker of the National Assembly, Dr Tulia Ackson informed the august House yesterday.

This means after the regulations are made, the country will have the Public Service Social Security Fund (PSSSF) and the National Social Security Fund (NSSF), to cater for the public and private sectors, respectively.

In her information to lawmakers, the Deputy Speaker said the Head of State had also endorsed the Written Laws Miscellaneous Amendment Act, 2018. The Public Service Social Security Act, proposes the establishment of the fund, the Public Service Social Security Scheme, serving all employees in the public service sector, including all employees in other pension funds.

After publishing the regulations for the implementation of the new law, the monies of the former Funds shall, with effect from the date of commencement of this Act, be transferred to the newly established PSSSF.

The Bill further directs the transfer of workers in the private sector as well as voluntary contributors to the National Social Security Fund (NSSF). According to SSRA, currently there are five social security funds in the country, with almost similar benefits. They are the National Social Security Fund (NSSF), PPF Pension Fund, Public Service Pension Fund (PSPF), Local Authorities Pension Fund (LAPF) and Government Employees Provident Fund (GEPF).

Several consultations were made when crafting the new law, with stakeholders proposing the merging of the funds into either one or two entities to reduce operational costs.

The International Labour Organisation (ILO) once advised the government to merge the pension funds into one or two entities to reduce the costs of pension benefits and operation costs, arguing that having many of them reduces their ability to offer quality services.