Institutional Framework of the Social Security System in Tanzania: Challenges, Reforms and Elderly Copping Strategies

Abstract

This paper examines the institutional framework of the social security system in Tanzania with special focus on the critical challenges facing the system and some reforms that have been undertaken. Coping strategies of old people with inadequate support from the social security system are also highlighted. Primary data were collected from 160 elderly in Morogoro Urban and Mvomero districts. The respondents were stratified into pensioners and non-pensioners and across gender. Primary data were complemented by interview of key informants and documentary reviews. The approach was basically qualitative analysis. It was found that the formal social security system in Tanzania comprises of five social security pension institutions; each of these traditionally covering a defined category of beneficiaries as per establishment piece of legislature. The system suffers fragmented legal and regulatory framework where schemes report to different ministries. To resolve this problem and enhance efficiency, a coordinating body, the Social Security Regulatory Authority (SSRA) has been established. Most of the products offered by the schemes are similar, albeit there are some variations. Complaints revolved around the inadequacy of benefits and delays in payments. The different strategies adopted by the elderly to cope with poor social security support are outlined. It is recommended that a special pension fund for all elderly (the Elderly Pension Fund- EPF) be established; monthly pension be transferred electronically via mobile phones in order to reduce transaction costs to the elderly; and in order to maintain the purchasing power of the pension beneficiaries an element of pension indexing be considered to accommodate inflationary pressure in the economy like in the case of pension benefits for senior government officials.

Keywords: Pension schemes, Elder vulnerability, Social security reform, Coping strategies