Tanzania: Job Cuts Loom Ahead of Pension Funds Merger
Job cuts look imminent in the social security sector following the drafting of a bill that seeks to merge four funds into one. Senior managers and operations staff will be hit the hardest as they are likely to be assigned other duties or laid off if the Bill is passed by Parliament and signed into law by the Head of State.
Among these who will be affected are the directors general of the four funds, boards of directors and heads of various directorates and departments. If the Bill is passed and signed into law, the resultant Public Service Social Security Fund Act will repeal the laws that established the Public Service Pensions Fund (PSPF), Government Employees Provident Fund (GEPF), LAPF Pensions Fund and PPF Pensions Fund.
These will be merged to form the Tanzania Public Service Social Security Fund (TPSSF), a behemoth with over Sh5 trillion in assets. Under the new setup, public employees who were contributing members of the National Social Security Fund (NSSF) will be transferred to TPSSF.
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