Social Security Coverage- Tanzania

5392 WordsNov 1, 201222 Pages
THE UNITED REPUBLIC OF TANZANIA THE NATIONAL SOCIAL SECURITY POLICY MINISTRY OF LABOUR, YOUTH DEVELOPMENT AND SPORTS JANUARY 2003 TABLE CONTENTS Social Security Policy Glossary…………………………………………………… Foreword ………………………………………………………………………………… CHAPTER I 1.0 1.1 1.2 INTRODUCTION……………………………………………….. Background……………………………………………………………………. The Concept of Social Security…………………………………………. CHAPTER II 2.0 2.1 2.2 2.3 2.4 2.5 2.6 SITUATION ANALYSIS OF SOCIAL SECURITY SYSTEM IN TANZANIA………………………………………………………… Objectives of Social Security Services ………………………………… Informal Social Security Systems……………………………………….. Formal Social Security System…………………………………………… The Impact of Social Security System in Tanzania……………….. Challenges In The social Security…show more content…
Tier one, which is financed by the government, caters for those who are not able to purchase social security services e.g. sick, disabled, elderly e.t.c. Tier two caters for those who can contribute and is compulsory and supervised by the government. Tier three caters for those who can afford to supplement their Tier two security by purchasing commercial insurance benefits. Tier three is voluntary and privately managed. Three-Tier system is designed to reduce the government expenditure on social assistance/security programs through expansion of coverage of Tier Two and Three. 2. 3. 4. 5. iii 6. Actuarial Valuation: It is the process which involves assessing the current level of funding of the scheme by comparing scheme assets with liabilities accrued to the date of valuation and to determine the level of contributions that need to be paid in future to achieve the level of funding necessary to pay out the benefits promised. Actuarial reviews are conducted in intermediate periods to ensure that the fund is sustainable and this is reflected in the projections are of a long time frame e.g. 25 years. 7. Social Insurance Principles: Is a social security administration where the resources are pooled together for meeting various contingencies, every one is included regardless of the level or risk exposure and the motive is social protection as opposed to profit maximization. Defined Contribution v/s Defined Benefits: Defined
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