The National Social Security Fund (NSSF) is the government agency of Tanzania responsible for the collection, safekeeping, responsible investment, and distribution of retirement funds of all employees in all sectors of the Tanzania economy that do not fall under the governmental pension schemes. The headquartersare located in Kivukoni ward of Ilala District of Dar es Salaam Region. There are one other pension fund organizations in the country; the Public Services Social Security(PSSSF). Fund for all employees working directly under the government and for all employees working under governmental Parastatal organization[3][4]
 | |
| Company type | Quasi-government |
|---|---|
| Industry | Social security |
| Predecessor | National Provident Fund |
| Founded | 1997 |
| Headquarters | B. Mkapa Pension Towers, Plot no 759, Block No 10, Azikiwe Street, Kivukoni, Ilala District, Dar es Salaam Region, Tanzania |
Area served | Tanzania mainland |
Key people | Board Chairperson Mwamini Juma Malemi Director general Masha J. Mshomba |
| Products | Pension fund |
| Revenue |  TSh (2014)[1] |
| Total assets | TSh (2011)[2] |
| Parent | Government of Tanzania |
| Website | Fund Website |
The NSSF was founded in 1997 as the successor to the defunct National Provident Fund (NPF). NSSF covers all other employers in the country and participation for both employers and employees is compulsory. NSSF is both a pension fund and a provident fund.[5]
History
editThe social security scheme dates back to 1945 where all social security issues were handled by the NPF. The National Provident Fund Act was enacted in 1964[6] and amended in 1968.[citation needed] The NPF became defunct in 1997 and the Act of Parliament No. 28 of 1997 replaced the NPF with the NSSF.[7]
Corporate affairs
editManagement and ownership
editThe company is entirely owned by the government of Tanzania and is one of the four social security funds in the country. The others are the Parastatal Pension Fund, the Public Service Pensions Fund, and the Local Authority Pension Fund.[8][unreliable source?] All the funds formerly were limited to separate sectors of the workforce; however, the regulations were liberalized in the early 2000s with all funds being authorized to enroll any employees in the formal and informal sector.[4]
Board members
editThe NSSF is managed by a board of twelve members, not including the director general. All board members must be Tanzanian nationals, and none of the board members may hold executive positions. The board has three specialized committees to manage operations: the Finance and Investment Committee, the Audit Committee, and the Staff Committee.[2]
Business trends
editThis paragraph needs additional citations for verification. (September 2018) |
A majority of NSSF's revenue comes from employee and employer contributions. The program is a compulsory scheme and is financed with a contribution of 20 percent of employees' salaries, with half of that paid by employers and the other half paid by employees.
The key trends for NSSF for 2007-2011 are shown below (as at year ending 30 June):
| 2007 | 2008 | 2009 | 2010 | 2011 | |
|---|---|---|---|---|---|
| Registered Employees | 14,927 | 15,560 | 16,592 | 17,666 | 18,779 |
| Registered Employers | 408,970 | 447,797 | 475,993 | 506,218 | 521,629 |
| Amount Collected (TSh million) | 162,379 | 205,385 | 255,271 | 300,089 | 356,512 |
| Benefits Paid (TSh million) | 50,522 | 81,818 | 85,120 | 110,135 | 136,596 |
| Notes | [9] | [10] | [10] | [2] | [2] |
Headquarters
editThe NSSF head office is at the Benjamin Mkapa Pension Towers in Dar es Salaam. The building formerly was named the Mafuta House. NSSF has an office in all major cities and all regional capitals.
Investments
editInvestment portfolio
editComposition of NSSF Investment Portfolio as at 30 June 2011
This paragraph needs additional citations for verification. (September 2018) |
The NSSF's investment policy requires the fund to invest 75 percent of its total annual sources. The fund traditionally invests in government securities, fixed deposits, corporate bonds, loans, equities, and real estate. Most of the investments are in loans and government securities and a large percentage of the income comes from interest collections. Recently, the NSSF has begun to invest heavily in real estate and have undertaken multi-billion shillings construction projects in various parts of the country.
NSSF Investment Portfolio 2006/07 – 2010/11[2]
| Investment Category (TSh million) | 2006/07 | 2007/08 | 2008/09 | 2009/10 | 2010/11 |
|---|---|---|---|---|---|
| Government Securities | 159,832 | 164,969 | 158,838 | 185,316 | 271,171 |
| Fixed Deposits | 35,545 | 68,298 | 145,292 | 180,963 | 161,711 |
| Corporate Bond | 12,755 | 10,804 | 8,054 | 6,418 | 800 |
| Loans | 117,315 | 182,251 | 283,949 | 386,763 | 453,403 |
| Equity | 96,911 | 61,047 | 62,988 | 69,303 | 77,999 |
| Real Estate | 108,292 | 182,908 | 198,558 | 200,440 | 251,538 |
| Total Investment Base | 530,652 | 670,280 | 857,681 | 1,029,206 | 1,216,624 |
Major Real-estate Projects
editNyerere Bridge
edit
Nyerere Bridge was built as a joint venture between the Government of Tanzania (40%) and the National Social Security Fund (60%). The Bridge is 680m long and connects the Kurasini in Dar es Salaam to Kigamboni. It was opened to the public in April 2016.
Dege Eco Village
editDege Eco Village was one of the largest investment projects conducted jointly by NSSF and Azimio Estate Housing Limited. The satellite township is located in the Kigamboni area and covers an area of about 350 acres. The state-of-the-art estate was slated for completion in 2017, however, due to fraud in the giant project,[11][12] construction stopped in 2016. NSSF put the unfinished project up for sale in 2022[13] but as of 2024 it remains abandoned.
References
edit- ^ "NSSF to invest heavily in coffee, cotton, cashewnut processing in three regions". IPP Media. IPP Media. 4 June 2015. Retrieved 28 December 2015.
- ^ a b c d e "NSSF 2010/2011 Annual Report". nssf.or.tz. NSSF. Retrieved 28 December 2015.
- ^ "About Us". www.ppftz.org. Archived from the original on 25 April 2015. Retrieved 28 December 2015.
- ^ a b "About Us - The Public Service Pensions Fund". www.pspf-tz.org. Retrieved 28 December 2015.
- ^ "National Social Security Fund - Overview". www.nssf.or.tz. Retrieved 28 December 2015.
- ^ "The National provident Fund Act 1964" (PDF). saflii.org. Government of Tanzania. 1964. Retrieved 28 December 2015.
- ^ Mdoe, Giza (20 August 2014). "NSSF launches scheme for Tanzanians in Diaspora". Retrieved 28 December 2015.
- ^ "DISCUSSION QN: QN. What are the following; NSSF, LAPF, PPF, and PSPF?". discussionqn.blogspot.ca. Retrieved 28 December 2015.
- ^ "NSSF Annual Report 2006-2007". nssf.or.tz. NSSF. Retrieved 28 December 2015.
- ^ a b "Annual Report 2007/08". nssf.or.tz. NSSF. Retrieved 28 December 2015.
- ^ "NSSF admits fraud in Dege Eco Village project". 27 October 2016. Retrieved 2 September 2024.
- ^ "JK applauds of Kigamboni satellite township model". IPP Media. 7 July 2014. Retrieved 28 December 2015.
- ^ "NSSF puts up Dege Eco Village for sale". The Citizen. 2 October 2022. Retrieved 2 September 2024.