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THE PUBLIC SERVICE RETIREMENTBENEFITS ACT, 1999

ARRANGEMENT OF SECTIONS

PART I

PRELIMINARY PROVISIONS

TitleSection

Short title and commencement.Application.Interpretation.

1 .

2.3.

PART 11THE PENSION SCHEME

4. Establishment of the Scheme.5. Membership of the Scheme.

PART III

BENEFITS COFFERED UNDERTHE SCHEME

6. Employees' contributions to pension and

gratuity as of right.7. Exemption from income tax.8. Benefits in respect of age, invalidity

survivors etc.9. Benefits as to compulsory age retirement.10. Death gratuity.11. Survivors benefit.

1

1999Public Service Retirement Benefits2 No. 2

12. Sickness benefit.13. Invalidity benefit.14. Withdrawal because of marriage or

maternity.15. Withdrawal because of emigration or

unemployment. in the Service.16. Scope of entitlement to pension, gratuity etc.17. Retirement age.18. Service not qualifying for pension.19. Emoluments to be taken into account when

computing pension or gratuity.20. Pensions, gratuity and allowances for persons

holding certain public offices.Benefits conferred to Chief Justice.Rates of pension and gratuity.Restriction on double benefit.Computation

21.22.23.24. of pension upon transfer

appointment

Gratuity where length of service does not25.qualify for pension.

Where service is terminated in public interest26.President may grant pension.

certainfromexemptPresident may27.conditions.

Public -Service, Retirement BenefitsNo. 2 1999 3

28. Pensions, gratuity or allowance not to beassignable.

29. Pensions when serving sentence.30. Approval of National Assembly to Increase,

vary or modify benefits.

PART IV

THE FUND

Establishment of the Fund.31.32. Establishment of the Board.

33. Management of the Fund.34. Appointment of the Director General.

Fund to be held by the Board of Trustees.Minister's powers to make regulations.

35.36.

PART VCONTRIBUTIONS AND PAYMENTS

37. Sources of the Fund.

Contributions and payments to the Fund.

Failure of employer to pay contribution to

38.

39.

the Fund.40. Employer's contribution.

Employee's contribution.Contribution not transferrable.Refund of excess contributions

41.42.43.

19994 No. 2 Public Service Retirement Benefits

44. Accounts of members.Members rights to their accounts.Contribution of the Fund to be drawn from

45.46.

the Consolidated Fund.47. Exemption from stamp duty and income tax.

Annual accounts and audit.48.49. Authority for withdrawals from the Fund.50. Report by the Board.

Actuarial evaluation of the Fund and Board's51recommendation to the Minister.

PART VITHE BOARD

52. Constitution of the Board.53. Functions of the Board.54. Duties of the Board.55. Powers of the Board to appoint and delegate.

Temporary members.56.

Tenure of office.57.Resignation and revocation of appointment.58.Vacation of office.59.Quorum and conduct of proceedings.Chairman of the Board to have a castingvote.

60.61.

1999 5No. 2 Public Service Retirement Benefits

62. Ministers power to give directions.Authentication of the seal.Reserve Account.

63.64.65. Board may establish a committee..

66. -Powers to grant loans-67. Disqualification from membership of the

Board.68. Disclosure of interest.

PART VIIOFFENCES

Offence with69. for failure complytoconditions..

Punishment.Director General to institute proceedings.Liability of members.

70.71.72.

PART VIIITRANSITIONAL PERIOD AND

MISCELLANEOUS PROVISIONSRepeal of Pensions Ordinance Cap.371.73.

74. Continuance of laws.75. Transfer of powers, rights, liabilities and

duties.

76. Transfer of property.77. Existing contracts.

Public Service Retirement Benefits6 No. 2 1999

78. Continuance of criminal and civilproceedings.

79. Continuance of service by officers and

employees..80. Pending disciplinary proceedings.81. Payments during transition period.82. Option to the payment of lumpsum.83. Employee's payments to be refunded and

paid out of the Consolidated Fund.84. Employees under the Pensions Ordinance to

continue under the same.85. Paymaster General to become custodian of

the Fund.

86. Amendment of Section 3 of the Income TaxAct, 1973.

87. Amendment of section 6 of the TanzaniaIntelligence and Security Service Act, 1996.

No. 2 Public Service Retirement Benefits 1999 7

THE UNITED REPUBLIC OF TANZANIA

No. 2 of 1999

An Act to establish the Public Service Pensions Scheme, toprovide for contributions to and payment of pensions, gratu-ities and other benefits in respect of the Service of officers inthe Government and to provide for the related matters.

I IENACTED by the Parliament of the United Republic of Tanzania.

PART IPRELIMINARY PROVISIONS

1.-(I) This Act maybe cited as the Public Service Retire-ment Benefits Act, 1999.

(2) This Act shall come into operation on the Firstday of July, 1999.

2. This Act shall apply to all Government employees employedin Tanzania as well as to employees employed by Executive Age-ncies established under an Act of Parliament.

Short titleand comme-ment

Applica-tion

I ASSENT

..................................................... President

14th April, 1999.

8 No. 2 Public Service Retirement Benefits 1999

Interpretation 3. In this Act unless thecontext otherwise requiresif annual

-

pensionableemoluments'' means theemoluments whichwould be taken for thepurposes of computingany pension or gratuitygranted to -the memberunder this Act if he hadretired from the Servicein circumstances

described in section 16.''benefit'' means a retirement

benefit payable underthis Act;

''Board'' means the Board ofTrustees of the PublicService Pensions Fundestablished by section 32;

1999 9Public Service Retirement BenefitsNo. 2

''child'' includes a step-child, a

child born out ofwedlock and an adoptedchild;

''Constitutional office'' meansan office which isestablished by or underthe Constitution of the

ofUnited RepublicTanzania of 1977-

11

"contract terms'' in relation toemployment means theterms whereby a personis employed on contractfor a period of servicewith an eligibility forpayment of a sum ofmoney upon satisfactorycompletion of thatperiod of service;

"commencement date'' means

the first day of July,


1999;''commuted pension gratuity''

means the gratuity whichmight have been grantedto the member undersection 22 if he hadretired from the Serviceat the date of his death incircumstances described

(e)in paragraph ofsection 16;

"compulsory retirement age''

means the age referred toin subsection (3) ofsection 17, upon theattainment of which anofficer shall retire;

''dependant'' in relation to adeceased officer, means -

where the(a)deceased officerwas a male, his


widow or if hewas married to

moretwo orh i sw i v e s ,

widows;t h e(b) w h e r e

deceased officerwas a female, thehusband of suchdeceased officer;every child of the(C)

deceased officerwho was whollyor substantiallydependent uponthe deceasedofficer's income

for his livelihood

immediatelytheprecedingthedeath of

deceased officer;


(d) the immediateparents of thedeceased officer,who satisfies thed e c e a s e do f f i c e r s9

employer thatthey were whollyor substantiallydependent uponthe deceasedofficer's income

f o r t h e i rlivelihood;

''Director General'' means the

Director General of thePublic Service Pensions

Fund appointed undersection 34;

"employee'' means any person

who -(a) is employed in

No. 2 1999 13Public Service Retirement Benefits

Tanzania undercontract o fs e r v i c e o rapprenticeshipw i t h a n

e m p I o y e r ,whether by wayof manuallabour, clericalw o r k o rotherwise andhowsoeverpaid;

(b) is permanentlyresident inTanzania and is

employed undera contract ofservice;is permanently(c)resident i nTanzania and isemployed outside

.

14 No. 2 Public Service Retirement Benefits' 1999

Tanzania under ac o n t r a c t o fService with anemployer i nTanzania b ywhom he is paid,

but does not include anyperson of eighteen yearsand twenty one yearsreceiving full timeeducation or receivingfull time training inrespect of which hedoes not receivesalaries, or any personunder the apparent ageof eighteen years;

it employee's contribution''means that portion of astatutory contribution

declared under section 41to be the employee'scontribution;

"employer'' means the person

with whom the employeeentered into a contract of

1999 15Public Service Retirement Benefits

service or apprenticeship,and who is responsiblefor the payment ofsalaries of the employee;

"employer's contribution''

themeans fifteenpercentum of theemployee's salary which

is provided under section40 to be the employer's

contribution;"Fund" means the Public

Service Pensions Fund

established by section 3 1;''incapable of work '' and

cognate expressionsmean, in relation to anyperson, incapacity forwork by reason of some

disease orspecificbodily or mentaldisablement, and also

16 No. 2 1999Public Service Retirement Benefits

includes references toany person deemed tobe so incapable underthis Act;

''member of the family when.

used in relation to aperson not generallysubject to localcustomary law meansthe wife, husband,

father, mother,

g r a n d f a t h e r ,grandmother, step-

father, step-mother,

child, grandchild,sister, half-brother,

brother or half-sister,and when used inrelation to a persongenerally tosubject

lawlocal customarymeans such persons as

Public Service Retirement BenefitsNo. 2 1999 17

local customary lawrecognizes as. membersof the family;

''member of the Fund'' means.

an employee who is amember of the PublicService Pensions Fundor a person registered asa member of the Fund -

9

''Minister'' means the Minister

responsible for Finance;11 month'' means a period of

consecutive thirty days;it non-pensionable office'' means

an office which is not apensionable office-

I

''paid'' means paid in money or

money's worth, and

where it has referenceto a date of paymentmeans the date onwhich the payment was


made in cash, or as the

case may be, the bills of

exchange or promissory

note was met;

''pensionable emoluments'' -

(a) in respect of

Service in the

Public Service

includes salary in

terms of the

(b) in respect of

other public

service, means

emoluments

which count for

pension in

accordance with

the laws or

regulation in

force in that

Public Service Retirement Benefits 1999 19No. 2

Service;when(c) used inrelation to ano f f i c e r not

ah o I d i n g

pensionableoffice, means theemolumentsenjoyed by himwhich wouldh a v e b e e n

pensionableemoluments ifthe office held byhim had been a

pensionableoffice -

I

''pensionable office'' means -

in(a) ofrespects e r v i c e i n

anTanzania,office in the

Public Service Retirement Benefits 199920 No. 2

Service to whichany person hasbeen appointedor promoted on

p e n s i o n a b I eterms and thatoffice shall bedeemed to be a

p e n s i o n a b I eoffice for so longas the personwho is appointedor promotedthereto on

pensionableterms continuesto hold theoffice-

I

in respect of(b)other publicservice, an officewhich is a

Public Service Retirement Benefit 1999 21No. 2

pensionableoffice under theI a w s o rregulations inforce in thatService-

9

Cap.371 ''Pensions Ordinance'' meansthe Pensions Ordinance -

t

''Public Service'' means servicein the Government-

I

qualifying pensionable service''it

means -

(a) any period ofc o n t i n u o u sservice renderedby a members i n c e h i sbecoming amember of thescheme andincludes periodsof absence from

-


leaveordutywith not less than

half salary; andany period of(b)c o n t i n u o u sService renderedby a member

immediatelyhisprior to

.abecoming

member of theduringscheme

he waswhichemployed by aGovernment oncontract terms oron other thantemporary terms,daily paid orcasual basis andduring which hewas governed by


employees'anyterminal benefitsscheme underw h i c h t h eterminal benefitor retirementtook the form of

of apaymentandpension,

includes anyo fp e r i o d s

absence fromleaveduty or

with not less thanhalf salary;

''Reserve Account'' means theReserve Accountestablished under section64-

9

"salary" means salary attached

to a pensionable office,or, where provision is


made for taking servicein a non-pensionableoffice into account aspensionable service, thesalary attached to thatoffice, including cost of

living allowance,incentive allowance, orany other additionalemoluments as may bedetermined by the

appropriate authority;''Scheme'' means the Public

Service Pensions Scheme

established by section 4;''Service'' means the Civil

Service of the UnitedRepublic;

''Service of Tanganyika'' means

civilin aServicetheundercapacityo fGovernment


Tanganyika or under thethen East AfricanCommunity before theI st day of July, 1977 on

permanent andpensionable terms underthe General Fund

Service and being a

citizen of Tanganyika;

''specified amount'' means -

in relation to the(a)period of servicean annual amountequal to one fivehundred andfortieth of themember's annual

pensionableemoluments foreach completed

hismonth of


pensionableservice;in relation to the(b)period of servicean annual amountequal to the

p e n s i o ncomputationfactor (which isapplied to themember underthe employee's,terminal, benefitscheme by whichhe was governed

hisprior to

becoming amember underthis Act) of themember's annual

p e n s i o na b I eemoluments for


completedeachof hismonth

p e n s i o n a b I eservice.

''specified office'' means anyoffice which the Minister

for Finance may, byorder published in theGazette, specify for the

purposes of this Act;"survivor'' means any person

who on the death of amember is entitled to asurvivor's benefit under

this Act;''transition period'' means the

period between I st July,1999 to 30th June, 2004-9

''trustee'' means a member ofthe Board including theChairman-

I

means a period of"year''twelveconsecutive

months.


PART 11THE PENSION SCHEME

4. There is hereby Establishmentestablished a Scheme to be of theknown as the Public Service SchemePensions Scheme.

5. All employees whoare confirmed in apensionable office

Membershipof the

in the schemeService shall become membersof the Scheme with effect fromthe date of commencement ofthis Act.

PART IIIBENEFITS CONFERRED UNDER THE

SCHEME6.-(I) A pension, gratuity or

other benefits which may begranted under this Act shall

Employeescontributionsto pension

consist of - and gratuity(a) contribution of a as of right

member-7

(b) contribution of anemployer;

Public Service Retirement BenefitNo. 2 1999 29

(c) other grants orinterests whichmay be receivedby the Fund or

which mayaccrue from theinvestments madeby the Scheme.

(2) The contribution of a memberand the contribution of an employerto the pension, gratuity or other ben-efits shall, to the extent that a mem-ber retires in accordance with theprovisions of section 16 or is other-wise made to cease to becoming anemployee in the service in circum-stances which does not injure orlower the esteem of or render, thepublic service in disrepute, be ofright.

Exemption 7. The pension, gratuityallowance or any otheradditional retirement benefitsgranted under this Act shall beexempted from income tax.

from IncometaxAct No.33

of 1973Benefits in 8. Subject to the

provisions of this Act, thefollowing classes of benefitsshall be payable under the

respect of age,invaliditysurvivors etc.

Scheme -(a) b e n e f i t s i n

respect o f

199930 No. 2 Public Service Retirement Benefit

retirement age,

survivorship and

invalidity;

(b) b e n e f i t s i n

r e s p e c t o f

sickness and

funeral;

(c) b e n e f i t s i n

r e s p e c t o f

m a r r i a g e ,

maternity or in

r e 8 p e c t o f

emigration o r

withdrawal o f

memberany

w h i c h a r e

w i t h d r a w a I

benefits.

Benefit as to 9. Subject tocompulsory section 17 of this Act retire-

ment benefit shall be payableto any person who being a memberattains the age of sixty years and sat-isfies the Director General that hehas retired from regular employ-ment.

age ofretirement


1O.-(l)Death Where agratuity member dies while in the

service, the Board shall grant tohis legal personal representativea gratuity of an amount notexceeding either his annualpensionable emoluments, or hiscommuted pension gratuity, if

any, whichever is the greater.(2) Where a deceased

member does not leave awidow, widower, or if nopension is granted to hiswidow, widower and if hisparents were wholly or mainlydependent on him for supportand without adequate means of

32 No.2 1999Public Service Retirement Benefits

support, the Board shall grantan amount not exceeding thepension which might have beengranted to his widow.

Where a deceased(3)member leaves a child who isor children who are, wholly ormainly dependent upon him forsupport at the time of hisdeath, a pension in respect ofeach child, until such childattains the age of twenty-oneyear's the Board shall grant toa child or children the amountnot exceeding the pensionwhich might have been

granted to his widow.(4) Where a member who

has retired from theservice on pension dies beforehe has received by way ofpension or reduced pension and


gratuity or other benefits underthis Act an amount which isequivalent to the amount whichmight have been granted to hislegal personal representativeunder sub-section (1) of thissection had that member diedwhile still in Service, theBoard shall grant to the legalpersonal representative of thatmemberamount

a gratuity of annot exceeding the

difference between the amountwhich has already been paid tothat member by way ofpension or reduced pension andgratuity or other benefits underthis Act and the amount whichmight have been granted to hislegal personal representative.


Survivors II.-(1) Subject to thebenefit provisions of section 10 of this

Act, where a survivors benefitis payable, and no notice suchas is prescribed by subsection(4) of this section has beenreceived, the Director Generalmay on such evidence as he

may require -

(a) pay the moneysdirect to thewidow for themaintenance ofherself and thedeceased'schildren who aredependent onhim or disabled-

I

(b) if there is nowidow, pay themoneys, in suchproportions as he


may think fit,direct to aguardian of thedeceased's infant

children to b eapplied to theirmaintenance- or

I

to anychild of thedeceased who isof full age butwho is incapable

of work byreason of somespecific disease

or bodily orm e n t a Idisablement; orto any otherdependant;

(c) if there are moreclaimants than


one as widow ordependant, orany of them, paythe moneys tothe executor oradministrator ofthe deceased's

estate; or(d) in any other

case, pay themoneys to theAdministrator-

General Whoshall hold themon trust for themembers of thefamily orother personfound to beentitled underthis section.


The provisions of(2)subsection (1) of this sectionshall not apply to any case inwhich an interested party hasgiven notice to the DirectorGeneral before he has madepayment of benefit thatapplication has been or is beingmade to the court for the estateof the deceased member to bedealt with in accordance withthe law of inheritance andwhere such an application isnot made within three monthof the date of death of thedeceased member, the DirectorGeneral may proceed to dealwith the benefit under theprovisions of subsection (1) ofthis section.


For the purposes ofit maintenance ''

(3)

this sectionshall be deemed to include inthe case of a child educationsuited to the child's station.

(4) Where moneys arethe Administrator-paid to

General under the authority ofthis section, the Administrator-General shall by such means ashe may think fit give publicnotice of the payment, havingregard topayment;

the amount ofand claims made

after the time limited by noticemay be ignored under theauthority of this subsection,and the amount may be paidaccordingly to the members Ofthe family and other entitledpersons who have given noticeof their claims to the


Administrator- General within

the time limited.(5) Moneys paid under the

authority of this section to theAdministrator- General shall, ifunclaimed for a period of two

from theyears date ofinto thepayment, be paid

Reserve Account of the Fund.

Sickness Where12.-(t) amember falls sick in circums-

tances which renders

incapable of continuing

benefithim

todischarge his duties and thatincapacity to work continues fora period of more than sixmonths, he shall, on medicalevidence to the satisfaction ofthe employer, be entitled inrespect of his incapacitythereafter to a sickness benefit


at the rate prescribed in theSchedule to this Act.

(2) Where a member orhis hisdependant dies,dependants or as the case maybe, a member shall be entitled,to a grant of funeral benefits atthe rate prescribed in theSchedule to this Act.

(3) Nothing in this sectionshall authorize payment of anysickness benefit which togetherwith other payments ofsickness benefit is in excess ofthe amount represented by theemployee's contributions andhis payments to the Scheme.


Invalidity 13. An invalidity benefitgranted under section 16 ofthis Act shall be payable to anymember who is so physically ormentally disabled as to beunemployable.

benefit

withdrawalWithdrawal 14. Abecause benefit prescribed in this Act

shall be payable toof marriage, -

a female member(a)or maternitywho proves tothe satisfaction of

DirectortheGeneral that in

consequenceof her marriagehas permanently

u pg i v e nemployment anddoes not intendto seek further

42 No. 2 Public-Service Retirement Benefit 1999

g a i n f u Iemployment int h e p u b I i cservice;

(b) a member whoproves to thesatisfaction of the

Director Generalt h a t i nconsequence ofher giving birthto a child has

permanentlyg i v e n u Pemployment anddoes not intendto seek furtheremployment int h e p u b I i cservice.

(c) a member whoproves to the


satisfaction of theDirector General

i nt h a tofconsequence

.his wife givingbirth -to a child

h a sh e

permanentlyu pg i v e n

employment and

does not intendto seek furtheremployment int h e P u b I i cService .

A withdrawal15-41)benefit to the extent prescribedin this Act shall be payable to

Withdrawalbecause ofemigration or

a member-unemploymentwho proves to the(a)in the servicesatisfaction of the


Director General

in the Service thathe is emigrating orhas emigratedfrom and has nopresent intentionof returning to theUnited Republic;

(b) who proves tothe satisfaction ofthe DirectorGeneral that hehas not beenemployed by an

employer liableto make acontribution inrespect o fhimself for atleast six months

immediatelypreceding the


application andhas reached theage of fifty fiveyears or more.

Scope of 16. Except for paymentsmade pursuance to theprovisions of sections 8, 9, 10,11, 12, 13, 14, and 15 of thisAct, no pension, gratuity orsimilar benefits shall be grantedunder this Act to any memberexcept on his retirement fromthe Service in any one of thefollowing cases

(a)

entitlementpension,gratuity etc.

afteron orattaining the ageof fifty fiveyears;in the case of(b)transfer to otherpublic service,

Public Services Retirement Benefits46 No. 2 1999

in circumstances

in which he is

permitted byI a w o rregulations of theservice in whichh e i s I a s temployed toretire on pensionor gratuity;

(c) on the abolitionof his office;on compulsory(d)

retirement;(e) on medical

evidence to thesatisfaction of theemployer that heis incapable ofdischarging theduties of hisoffice by reason


of becominginvalid-

on termination of(f)employment int h e p u b I i cinterest;upon cessation to(g)hold o f f i c epursuant to theprovisions ofArticle 72 of theConstitution.

Retirement 17.-(l) The age ofage voluntary retirement from

Service shall be fifty five years.(2) Subject to subsections

(3) and (4). of this section andsection 16(e) an officer whoattains the age of fifty fiveyears may at any timethereafter opt to retire but an


officer who does not so optshall continue in office in theService on pensionable termsuntil he attains the age of sixtyyears which is the age of

compulsory retirement.

(3) During the transitionperiod, an officer who does notretire from Service uponattainment of fifty five yearsshall not retire from Serviceexcept on the following cases-

(a) on medicalevidence to thesatisfaction of theemployer that heis incapable ofdischarging hisdutied by reasonof becominginvalid;


(b) o n t h esatisfaction of theemployer thatretirement iso t h e r w i s enecessary o runavoidable;

(c) on abolition ofan office or oncessation to holdo f f i c e i npursuance to theprovisions ofArticle 72 of theConstitution; or

(d) on the motion ofthe employer.

(4) The provisions of thissection shall not apply to anofficer who has been appointedto hold the office of Judge ofthe High Court, or Justice ofCourt of Appeal or Controllerand Auditor General.


(5) The age for voluntaryor compulsory retirementfor Judge of High Court,Justice of Appeal or theController and Auditor-General shall be as is pro-vided for under Constitu-tion.

Service not 18. No pension orqualifying gratuity shall be awarded underfor pension this Act to any member in

respect of any service -(a) w h i I e o n

probation unless

immediatelyfollowing that

o fp e r i o dprobation, themember shallh a v e b e e nconfirmed in hisappointment; or

(b) while he wasabsent from dutyon leave without


salary unless it isestablished to thesatisfaction of theBoard that -(i) such leave

w a sgranted ongrounds of

p u b I i cinterest;and

(ii) t h eemployerundertakest o p a yinto theFund boththe emp-I o y e e ' sand thee in p I o -

y e r's


contribu-

tion forthe period

ehtemployeew a sabsent or

while under the(C)

age of eighteenyears.

19. For the purposes ofcomputing the amount of thepension or gratuity of a, memberunder this Act, the highestpensionable emolumentsenjoyed by him within thetwelve months preceding hisretirement shall be used forcalculating his pension.

Emolumentsto be takeninto accountwhen computingpension orgratuity

I


any20.-(I) WhenPensions,aholdingiswhopersongratuity andisconstitutional officeallowances,

transferred, appointed,for personsnominated or electedholding -

t o another(a)certainconstitutionalpublicoffice, then whenofficeshe retires, thehighest salaryreceived by himduring his Serviceshall be taken into

whenaccounthiscomputing

pension, gratuitya n d o t h e rallowances;t o a n o n -(b)constitutionaloffice, then when

theretires,he


h es a I a r ywhilereceived

ho I d 1 ng aconstitutionaloffice shall be, ifit is the highest,

i n t ot a k e nwhenaccount

hiscomputingpension, gratuityand otherallowances.

(2) A person holding a

constitutional office shall notthe pension,be granted

terminalotherorgratuityto thebenefits applicable

holder of that office if when heoffice herelinquishes thatanotherenters upon

constitutional office or a non-

constitutional office, until the


time when he finally retiresfrom the Service, upon whichoccasion the pension, gratuityor other terminal benefits shallbe granted to him, subject tothe provisions of subsection(1) -

(3) Notwithstanding theprovisions of this Act-

(a) Justice of Appealand a Judge;

(b) the Attorney Gen-eral, the Chief Sec-retary, the DirectorGeneral of Intellige-nce, the InspectorGeneral of Policeand the Controller

and Auditor-General;Principal(c) the

Commissioner ofPrisons and theDirector Generalof Prevention ofCorruption Bu-reau,

shaff each retire on a pensionwhich shall be equal toeighty per cent of the salaryof the incumbent holder ofthe office in which he wasserving and from which heretires.:


(4) In addition to thebenefits granted undersubsection (3) the publicofficers mentioned thereundershall be granted thebyappropriate authority-

(a) a diplomaticpassport for himand his spouse;

(b) one motor,vehicle givenonce, of a valuenot exceedingsuch amount asthe Presidentmay from time totime determine;

(c) a total sum of moneygranted once as alumpsum which shaftbe sufficient torenumerate onedriver for a period offour years;

T


(d) a total sum of moneysufficient to purchasefifty litres of fuel perweek granted once as

a lumpsurn which shallcover a period of fouryears;

(e) a total sum of moneybeing maintenanceallowance for a rno-tor vehicle to be gra-nted once as a lu-

mpsurn at a rate equalto forty percent offuel allowance;

(f) use of VIP lounge.:(5) The pension, gratuity,

servicesallowances andgranted under this section shallbe paid out of the ConsolidatedFund and shall not be subjectto income tax.

Notwithstanding(6)Subsection (5) any person whoafter being transferred orappointed to a Constitutional'Office or such other publicoffice mentioned under thissection and section 21 shall


continue to be a member of theFund and the provisions ofsection 6 which relate to thecontributions to pension shallapply as if that person has notbeen transferred or appointedto a Constitutional Office orsuch other public office

(7) A person who holdsthe office of Regional

Commissioner shall, upon

ceasing to hold office incircumstances set out by thePolitical Service Retirement.Act, 1999,

(i) if the person isqualified for

o fpaymento rp e n s i o n

gratuity underthis Act, beentitled to grant


orof pension

i ngratuity

accordance with

the provisions of

this Act; or(ii) if the person is not

qualified for paymentof pension or gratuityunder this Act, be en-titled to a grant ofgratuity payable at arate of forty per -cent.

21-41)Benefits A, person whoconferred held the office of the Chief

Justice shall upon ceasing tohold office, be granted-

to ChiefJustice

a n n u a Ia n(a)pension grantedmonthly of a sumequal to eighty

theofpercenttheofsalary

incumbent ChiefJustice;

Public-Service Retirement Benefits 199960 No. 2

(b) a winding-up

allowance of asum equal tofifty percent ofthe total sum ofthe salaries hereceived while heheld office asChief Justice;

(c) a gratuity of asum-

toequal

f I f t ypercent ofthe totalsum of thesalaries hereceivedwhile heheld officeas ChiefJustice;

(2) The appropriateauthority shall arrange andprovide to the Chief Justice

L


upon ceasing to hold thatoffice-

diplomatica(a)passport for him

for hisandspouse;

h e a I t ha(b)insurance policyt h a t coversm e d i c a Itreatment withint h e U n i t e dRepublic, and

m o t o ro n e(c)of avehicle,n o tv a I u esuchexceeding

theasamountmayPresident

totimefromdetermine,time

which shall be


granted to himOnce in hisretirement.

(d) seventy litres of fuelper week;

(e) maintenance allowa-nce for a motor

vehicle at a rate equ-al to forty percent offuel allowance;

a driver.M

(3) Payments for pension,gratuity and other retirementbenefits in respect of the ChiefJustice in pursuance of thissection shall be paid out of theConsolidated Fund and shallnot be subjected to income tax.

Rates of 22.-(I) Subject to thepension and provisions of this Act, agratuity member who shall have had not


less than an aggregate of fifteen

years qualifying service may,on retirement, be granted -

(a) a commutedpension gratuityequal to fifteen'

one-halfandone-times the

half of thespecified amount,unless the said

m e m. b e ranexercises

option in writingto be paid in lieuof such reduced

pension andc o m m u t e d

pension gratuity,of the specifiedamount;


a reduced annual(b)pension of anamount equal toone-half of the

specified amount;(2) Every officer holding

a pensionable office under theGovernment who has been inThe service in a civil capacityfor fifteen years or more mayon retirement be granted apension at the annual rate ofone five hundred and fortiethof his pensionable emolumentsfor each complete month of hispensionable service.

Restriction 23. No person being amember shall be entitled at anyon double

.time to receive more than onebenefitbenefit and in the event of amember qualifying for more


than one benefit at the sametime, the Board may in itsdiscretion approve or seek theopinion of a member soqualified as to which one of thebenefit was suitable to amember and the decision of theBoard shall be final:

Provided that the benefitto be granted shall be limited to

I

an amount not exceeding theaggregate of his pensionableemoluments.

Computation 24.- (1) Where anof officer who holds a pensionable

office joins the Service in aspecified office or a parastatalorganization, or having servedin a specified office or aparastatal organization joins theService on pensionable terms

pensionupontransferappointment


and his aggregate service wouldhave qualified him, onretirement, for a pension hadthat Service been wholly underthe Government he may, on hisretirement from the Service, theService of the specified officeor the parastatal organization,as the case may be, incircumstances in which he ispermitted by the law orregulation of the service inwhich he is last employed toretire on pension, be granted inrespect of the Service a pensionwhich shall be calculated withreference to the provisions ofthis Act.

(2) Where the officer isnot in the Service at the timeof such retirement, his

emoluments forpensionable


and his aggregate service wouldhave qualified him, onretirement, for a pension hadthat Service been wholly underthe Government he may, on hisretirement from the Service, theService of the specified officeor the parastatal organization,as the case may be, incircumstances in which he ispermitted by the law orregulation of the service inwhich he is last employed toretire on pension, be granted inrespect of the Service a pensionwhich shall be calculated withreference to the provisions ofthis Act.

(2) Where the officer isnot in the Service at the timeof such retirement, his

emoluments forpensionable

.

No. -2 1999 67Public Service Retirement Benefits

the purposes of this sectionshall be those which arecurrently taken for computingthe pension of the holder of theoffice he last held when he was

last employed in Service.(3) Where, immediately

before he was appointed,nominated or elected, as thecase may be, to a specifiedoffice ororganization

parastatalaan officer

employed on pensionable termsor his employment wasgoverned by an employees'terminal benefits scheme underwhich the terminal benefits onretirement took form ofpayment of a pension, thatofficer shall not be eligible toreceive a pension or gratuityunder this Act during all that


period in which he wasemployed to such a specifiedoffice or a parastatalorganization and such officershall, on taking such office bedeemed to be on leave withoutsalary from Service for thepurpose of computation of hispension and gratuity.

Gratuity 25. Every officer,where otherwise qualified for a

pension, who has not been inthe Service for fifteen years,may be granted on retirement agratuity not exceeding fivetimes the annual amount of thepension which, if -there hadbeen no qualifying period mighthave been granted to him underthe Act.

length ofservicedoes not

qualifyfor pension


26. Where an officer'sService is terminated on theground that, having regard tothe conditions of the publicservice, the usefulness of theofficer and all the othercircumstances of the case, such

Where Serviceis terminatedin publicinterest

President maygrant pension

termination is desirable in theand thepublic interest,

benefits cannot otherwise begranted to him under provisionsof this Act, the President may,if he thinks fit, grant suchbenefits as he thinks just andproper, not exceeding inamount that for which theofficer would be eligible if heretired from the public servicein the circumstances describedin paragraph (e) of section 16.


President may Any public27.-(I)

exempt from - officer to whom this Act appliesmay by application to thePresident, supported by ana f f i d a v i t a n d t h erecommendation of a specifiedauthority, apply for exemptionfrom the application to him ofany condition under this Act orunder any other written law

certainconditions

relating to the granting of.pension or gratuity, and the

President may grant theexemption if he is satisfied thatthe application of suchcondition under the Act orunder any other written law inrelation to the public officer ora category of public officerswould unfairly disqualify theofficer or category of publicofficers from being grantedsuch pension or gratuity.


(2) There shall beformed a RetirementBenefits Committeewhose functions shall beto advise the Presidenton matters relating topension.(3) For the purposes of

this section the expres-sion specified authority''means-

(a) in relation to apublic officerserving under ad i s t r i c t o rr e g i o n a Iadministration,the RegionalAdministrativeSecretary.

(b) in relation to apublic officerserving in aMinistry, thePermanentSecretary; and

(c) in relation to apublic officer


serving in anextra-Ministerial

Department, theHead of theDepartment.

(4) The RetirementBenefits Committee shallconsist of-

(a) t h e C h i e fwhoSecretary,

shall be theChairman-

9

(b) the PermanentSecretary to theTreasury;

(c) the PermanentSecretary for the

t i m e b e i n-gresponsible forCivil Service;


the(d) DeputyA t t o r n e yGeneral,

and it shall generally be respon-sible for advising the Presidenton matters relating to the provi-.sions of this section.

All the- retirement(5)benefits granted under thissection shall be paid out of theConsolidated Fund.

28. A pension, gratuityor other allowance grantedunder this Act shall not beassignable or transferableexcept for the purposes of

Pensions,gratuity orallowancenot to beassignable

satisfying -a debt due to the(a)Government; oran order of any(b)competent court


for the periodical

payment of sumsof moneytowards themaintenance ofthe wife orformer wife or achild of theofficer to whom

the pension,gratuity or otherallowance hasbeen granted,

and shall not be liable to beattached, be questered or leviedupon for or in respect of anydebt or claim except a debt,including a debt of income taxdue to the Government.


29.-(l) If any person to whom ben-Pensionsefits have been granted under thisAct is sentenced to a term of imprisonment by any competent courtfor any offence, it shall be lawful forthe Board, to direct all or any partof the moneys to which that personwould have been entitled by way ofpension or allowance had he notbeen sentenced, to be paid, or ap-plied, for the maintenance or ben-efit of, all or any to the exclusion ofthe other or others, of the follow-

whenservingsentence

ing, that is to say, such person andany wife, child or children of thatperson in such proportions and man-ner as the Board thinks proper, andsuch moneys shall be paid or appliedaccordingly.:

(2) If that person afterconviction at any timereceives a free pardon, thebenefits shall be restored withretrospective effect; but indetermining amount of benefitspayable to that person, accountshall be taken of all moneyspaid or appliedsubsection (1).

under

1999Public Service Retirement Benefit76 No. 2

Ap- 30.-(I) If the President, afterconsultation with the RetirementBenefits Committee, considers itnecessary, desirable or in the na-tional interest, and is minded thatany retirement benefits payable un-der the provisions of this Act, be in-creased or otherwise varied or modi-fled m such manner and to such ex-tent as he may determine, he maym writing signify his intention to theMinister m that behalf.

provalof theNa-tionalAs-sern-bly toIn-crease,varyormodify (2) Where the Minister-ben-

(a) receives a writing signi-efits ring to him the inten-tion of the President mpursuance of subsec-tion (1); or

(b) after consultation withthe Retirement BenefitsCommittee, considers itnecessary or desirable

that the minimum pen-sion payable to persons

Cap. enjoying retirement ben-371 efits under the provisions

of the Pensions Ordi-nance be increased,

he shall submit to the National As-sembly the intention of the Presidentreferred to m subsection (1) or, asthe case may be, that of the Minis-ter referred to m paragraph (b), forthe Assembly to approve of the in-tention by resolution.

No. 2 Republic Service Retirement Bent, 1999 77

(3) Where the National Assemblyapproves of the intention of thePresident or of the Minister submit-ted to it under subsection (2), thePresident or, as the case may be, theMinister shall then, by order pub-lished m the Gazette, increase, varyor modify otherwise the retirementbenefit or the minimum pension, asthe case may be -

(4) The retirement benefitsgranted m pursuance of this sectionshall be charged on the ConsolidatedFund.PART IV

THE FUNDEstablishment 31.-(1) There is hereby

established a Fund to beknown as the Public ServicePensions Fund into which shallbe paid

of the Fund

-

(a) all contributionsrequired to bemade under thisAct;

(b) money earned bycarrying out anyproject, schemeor enterprise


f i n a n c e dpursuance to thisAct;

(c) moneys earnedor arising fromany property,

investments,In 0 r t g a g e s ,charges o rdebentures

acquired by orvested in theFund-

I

(d) all other sums orproperty whichmay in anymanner becomepayable to orvested in theBoard in respectof any matterincidental to i t s

R


andpowersduties -

There may be charged(2)on and paid out of theFund all such sums of moneyas may be granted by way of

othergratuity orpension,theincludingbenefits,

expenses of administration, asare authorized by this Act.

32.-(l) There is herebyestablished a Board of Trusteesof the Public Service Pensions

Establishmentof the Board

Fund.The Board shall be a(2)

body corporate withasuccession andperpetual

itsseal and incommoncorporate name, be capableof-


(a) suing and beingsued;

(b) a c q u i r i n g ,

purchasing,holdingtaking,

and enjoyingmovable andimmovableproperty; and

(c) entering intocontracts and

a n dd o i n gperforming allsuch things oracts for the

rp r o p eperformance ofits functionsunder this Actw h i c h in a y.lawfully be doneor performed by


a body corporate.(3) T h e

constitution, functions,duties, powers and anyother matters in relationto the Board shall be asprescribed in Part VI ofthis Act.

Management 33. The Board shall beresponsible for the managementand control of the Fund inaccordance with the provisionsof ''this Act.

of the Fund

Appointment of 34.-(I) The Presidentthe Director shall appoint a person to be the

Director-General of the Fundwho shall serve upon terms andconditions which shall bespecified in the instrument ofhis appointment.

General


(2) The Board may, withthe consent in writing of theMinister, appoint such otherofficers and employees of suchdesignationnecessary

as it considersfor the efficient

conduct of the business of theFund and upon the salaries andother terms and conditions asmay be determined by theBoard.

Without prejudice to(3)any provision in this Act, theDirector General shall be theSecretary of the Board andsubject to the directions of theBoard, be responsible for theday to day administration ofthe Fund and the Scheme.


Fund to be 35.-(l) For theavoidance of doubt, it is herebydeclared that the money in theFund shall, for the purposes ofthis Act and all other writtenlaws, be deemed to be fundsheld by the Board in trust forthe members of the Scheme tobe administered by the Board inaccordance with the provisions

held bythe Boardof Trustees

of this Act.

(2) Notwithstanding the. provisions of subsection (1), itshall be lawful for the Board toauthorize payments out of theFund for any of the purposes.for which payments out of theFund are expressly authorisedby the Act.


Minister's 36. The Minister may,powers to on recommendation of themake regula- Board, make regulations -tions (a) to provide for the

manner o fpayment andcollection ofcontributions;

(b) forto provideforms in whichparticulars andreturns shall besubmitted-

I

(c) to provide for the'forprocedure

dealing withu n c I a i rn e d

. themoneys M

Fund;(d) to provide that

any provisions ofthis Act shall not


shallapply orapply with suchmodifications asmay be specified

in the regulationsto any persons or

class of persons.(e) to provide for

anything whichmay be necessaryfor the bettercarrying out ofany of theprovisions of this

Act.

PART VCONTRIBUTIONS AND PAYMENTS

Sources of 37. The sources of thethe Fund Fund shall be from -


(a) e m p I o y e e scontributions -

I

(b) employer'contributions-

s

9

(c) moneys accruedf r o m t h einvestment of theFund;such(d) sums as

b em a yappropriated byParliament forthe purposes ofthe Fund.

38.-(I) All sumsContributionsand payments collected, recovered orto the Fund transferred on account of

contribution under this Act shallbe paid into the Fund in suchmanner as the Board shalldirect.


(2) The Board shall causeto be credited to eachmember's account -

ofamount(a) theany contributions

hisinpaidthebyrespect

employer on hisown behalf and

on behalf of suchmember;

(b) any other moneyspaid on behalf ofthat memberunder this Act.

39.-(l) Where anyFailure ofemployer fails to pay anyemployer to

pay contri- hascontribution which hededucted from the wages of anbution to

I

employee, the Board shall, onthe Fundsuchthatsatisfiedbeing


deduction has been made, creditthe employee with the amountof that contribution and chargethe amount so credited to thegeneral revenues of the Fund.

(2) Nothing in this sectionshall Prejudice the right of theBoard to recover the amount ofsuch contribution from theemployer.

(3) Notwithstandinganything to the contrary anyamount recovered undersubsection (1) shall bedisbursed in the followingmanner -

(a) to be credited tothe generalrevenues of theFund such sumthat has beenpaid out from the


general revenuesof the Fundunder subsection(1);

balancethe(b)thereof shall becredited to ther e s pe c t i v ee rn p I o y e e sa c c o u n t srateably.

Employer's 40. Every employer ofa member shall be liable to paymonthly contributions in respect

contribution

of the member at the rate- ofthefifteen percentum. of

member's salary.

Employee's 41.-(1) Each membercontribution shall make, as from the date of

aa member,becoming


contribution to the Fund at therate of five per-centum. of hissalary and that contributionshall be deducted from hissalary monthly.

(2) An employer shallcontribute in respect of amember by deducting thatmember's contribution from

his salary at the end of eachmonth.

(3) Where an employerdeducts a member'scontribution from themember's salary in pursuance

of this section in advance ofthe payment of that

I

contribution. to the Fund, theemployer shall hold thatcontribution on trust for thepurposes of this Act.

1999 91Public Service Retirement BenefitsNo.2

(4) Where the Board issatisfied that an employer has

I

member'sdeducted thecontributions from themember's salary but has failedto pay the contribution to theFund, the Board may whetheror not that contribution isrecovered from the employer,*credit to the member's accountin the Fund, the amount of themember's contribution and

thethe cost tochargeemployer.

Contribution 42. Notwithstandingnot transfer- anything to the contraryrable contained in any written law -

(a) no sum deductedfrom the salaryof the member ofthe Fund -

f

Republic Service Retirement Benefits92 No. 2 1999

n o amount(b)payable by theemployer as his

contribution inrespect of amember- and

n o(c) a m o u n ts t a n d i n gotherwise to thecredit of amember of the

Fund,shall be assignable,transferrable or liable to beattached, or levied upon for orin respect of any debt or claimagainst a member.

43. Any moneys paid tothe Fund in excess of theamount for which any employeris liable in respect of an

Refund ofexcesscontributions


employee or in excess or inexcess of the contributionpayable for a contributionperiod may be refunded to theemployer or a member or both,as the case may be, in suchmanner as the Board maydetermine.

Accounts of 44.-(I) The Board shallestablish and maintain for eachmember of the Fund

members

anaccount to which shall becredited all contributions madeto the Fund in respect of suchmember.

(2) All the payments madeby that member and all interestcredited under this Act, shallbe charged all the benefitsgranted or refund made inrespect of that member.

-

Public Service Retirement Benefits 199!94 No. 2

Members rights 45. It shall be the dutyof the Director General toinform any member of the Fundon request about the welfare ofthe member's account.

to theiraccounts

Contribution 46. If the Fund is at anyto the Fund time unable to pay any

sum which the Fund is requiredto pray under this Act, the sumrequired to be so paid shall becharged on and advanced to theFund from the ConsolidatedFund and the Fund shall assoon as Practicable repay to theGovernmentadvanced.

to be drawnfrom theConsolidatedFund

sumthe so

Exemption 47,0) No stamp duty andfrom stamp no- value added tax shall beduty and payable on any receipt,income tax contract, instrument or other


document given or executed bythe Board on behalf of the Fundor by any person in respect ofbenefits or refunds ofcontributions under this Act.

Notwithstanding(2)subsection (1) nothing in thissection shall be construed toexempt any person fromliability to pay stamp duty onany power of attorney or onany document otherwise liable

Act No.20of 1972

under the Stamp Duty Act.

(3) No income tax on thecontributions and benefitspayable under the Scheme orcorporate tax or any other taxwhich would have otherwisebeen levied on the Fund, belevied on the Fund.


Annual 48.-(I) The Board shallaccounts cause to be kept andand audit maintained proper books of

accounts and records withrespect to -

(a) the receipt andexpenditure ofmoneys and otherf i n a n c i a Itransactions ofthe Fund;the assets and(b)liabilities of theFund,

and shall cause to be made out,for every financial year abalance sheet and a statementshowing details of the incomeand expenditure of the Fundand all its assets andliabilities.

(2) Not later than six


months after the close ofevery financial year, theaccounts including the balance

sheet of the Fund relating to

that financial year shall be

audited by the Controller and

Auditor General.(3) As soon theas

accounts of the Fund have been

audited, and in any case not

later than six months after such

audit, the Board shall submit to

the Minister a. copy of the

audited statement of accounts,

together with a copy of the

report made by the auditors.(4) As soon as practicableafter receipt by him of thecopy of the statementtogether with the copy of thereport submitted pursuant tosubsection (3), the Minister,,


.shall lay a copy of thestatement together with a copyof the auditors' report beforethe National Assembly.

Authority 49.-(I) Subject to sections 11,

12, 13 and 14 and any

regulations and rules made

under this Act, no sum of

money standing to the credit of

a member of the Fund may be

withdrawn except with the

authority of the Board and,

for withdrawalsfrom theFund

such authority shall not bethe Boardgiven unless is

satisfied that -the member of(a)

hasthe Funddied;the member of(b)the Fund hasattained the age


of sixty years;(c) the member of

the Fund isphysically or

in e n t allyincapacitatedfrom engaging inany furtheremployment;

(d) the member ofthe Fund is aboutto leave thecountry with nointention o freturning theretoor of residing int h e U n i t e dRepublic ofTanzania.

(2) When a withdrawalunder subsection (1) has beenmade of any amount standing

... ...---,- - - -

1999Public Service Retirement BenefitsI 00 No. 2

to the credit of the memberof the Fund, the membershall not thereafter be treatedas an employee.

50. The Board shall, withinsix months after the end ofeach financial year, make areport to the Minister on theoperations of the Fundduring that financial year,and the Minister shall lay acopy of that report before theNational Assembly togetherwith a copy of the statementof accounts required to belaid before the NationalAssembly by section 48.

Report bythe Board


Actuarial 51.-(I) The Board shall,at intervals of not less thanfive years or at any time whenthe Minister so directs, causethe assets and liabilities of theFund to be evaluated by an

evaluation

of the Fundand Board'srecommenda-

tion to theMinister actuary.

or(2) Any reportfindings of an actuary madeunder subsection (1) shall besubmitted before the Board assoon as possible and the Boardupon receipt of the report orfindings shall make necessaryrecommendations to theMinister.

Recommendations of(3)the Board arising from thereport of the evaluation carriedout in terms of subsection (1)shall be submitted to theMinister within that time and


in that report, the Minister shall

take measures as he may

consider necessary or

expedient for the avoidance of

any current or future deficiency

in the Fund, and may advise

the employers as well as the

employees to increase their

contributions to the Fund by

the revised rate as he may

determine or make any steps or

measure geared at ameliorating

the deficiency or

loss to the Fund.(4) The word ''actuary'' as used

under this section means an

expert who calculates

insurance risks and premiums

by studying rates of mortality

and frequency of accidents,liketheandfires, thefts

incidents.


PART VITHE BOARD

52.-(l) The Board shallCompositionof the Board comprise of -

(a) Chairman, whos h all b eP e r in a n-e n tSecretary of the

ofMinistryFinance;-

(b) the PermanentSecretary to theCivil Service;the Attorney-(c)General -

9

(d) the Governor ofthe Bank ofTanzania;

(e) the SecretaryGeneral of theTrade Union ofGovernmentEmployees;

1999Public-Service Retirement Benefits104 No. 2

(t) the TreasuryRegistrar;

(g) three other membersappointed by the Minis-ter being-

(i) two representa-tives from the tradeunion of Govern-ment employees

one of whom shallbe a woman;

(ii) one representa-tive from the

Civil Service;

(2) The appointments tobe made by the Minister under subsection (1)(g) shall bemade from amongst persons who have had experience of,and shown securityfinancial

capacity in, social law, insurance,matters o r administration.

(3) Members of the Board shall not beentitled to any remuneration but may bepaid such allowance as the minister mayupon


recommendation of the Board,determine.

shallBoardThe(4)ordinarily meet four times ina year but the Chairman mayconvene an extra-ordinarymeeting when the need to doso arise.

53. The functions of theFunctionsBoard shall be -of the

to manage and(a)Boardtheadminister

Fund-I

to invest moneys(b)available in theFund-

I

to be responsible(c)for disbursement

of pension,gratuity andother benefits in

106 No. 2 Public-Service Retirement Benefits

accordance withthe provisions ofthis Act;

(d) to advise theMinister onmatters relatingt o t h eadministration ofthis Act- and

9

(e) to do all suchacts and things

and to enter intoall s u c htransactions as,in the opinion ofthe Board, maybe necessary forthe proper ande f f i c i e n tadministration ofthe Fund.

-


'54. It shall be the dutyDuties of

the Board of the Board -to manage and(a)

theadminister...

i nF u n daccordance with

the higheststandards whicha person -holdingany fund in afiduciary capacity

ofon behalfmayanother

bereasonablytoexpected

conform to;to protect,(b)

andsafeguardthepromote

interests of themembers of the

Fund;


(c) to do all suchacts and things asthe Board mayreasonably beexpected to do -

(i) to upholda n dsupportthe credito f t h eFund-

I

(ii) to obtainand justify

ht econfidenceo f t h epeople ofthe UnitedRepublic

f0

Tanzaniaand of the


memberst h eo f

inFundparticular;and

avertto(iii)n da

minimizelossany

t h et 0

Board.

55.-(I) The Board shall

have such powers as are

given or imposed under this

Act.

Powers of

the Boardto appointand delegate

The Board may, by(2)

instrument under its seal,

appoint and delegate to such

terms, conditions and

restrictions as it may specify, to

any committee of the Board or


to the Fund all or any of thefunctions, authorities or dutiesconferred upon the Board by orunder this Act and where anydelegation is so made thedelegatedauthority

function, power,or duty may be

performed or, as the case maybe exercised by the delegatesubject to the terms, conditionsand restrictions specified inwriting.

(3) The Board may revokea delegation made by it under

.this section.(4) No delegation made

under this section shallprevent the Board from itselfperforming or exercising thefunction, power, authority orduty delegated.

(5) In the event of any

Public Service Retirement BenefitsNo. 2

dispute between the Board and

the Fund on or in relation to

any matter arising from any

delegation or purported

delegation made under this

Act, the dispute shall be

referred to the Minister whose

decision shall be final and

binding on the parties.

Temporary 56.-(l) Where anymembers member appointed under

subsection (1)(d), (e), (f) and

(g) of section 52 is by reason

of illness, infirmity or absent

from the United Republic,

unable to attend any meeting of

the Board, the Minister may

appoint a temporary member in

his place and such temporary

member shall cease to hold

office on the resumption of


office of the substantivemember.

(2) When attendingmeetings of the Board in place

of a member, the temporary

member appointed under

subsection (1) shall for all

purposes be deemed to be a

member of the Board.(3) A temporary member

shall cease to be atemporary member when thesubstantive member in respectof whom he is a temporarymember ceases to be a memberof the Board.

Tenure 57. Every member of theBoard, shall hold office for aterm not exceeding three

of office

years and shall be eligible for.

reappointment.

No. 2' Public Service Retirement Benefits 1999 113

Resignation 58-41) . Any member ofand revocation ...the Board, may at any timeof resign his office by a written

noticeappointment addressed to theChairman, and in the caseappointment of the Chairmana written notice addressed to the

Minister.(2) The Minister may at

time revokeany theappointment of a member ofthe Board if he thinks it isexpedient so to do withoutassigning any reason.

Vacation 59. A member of theof Board shall be deemed to haveoffice vacated his office -

upon his death - or(a)11

(b) upon his failure

to attend threeconsecutive


meetings of theBoard withoutreasonableexcuse.

Quorum and 60.-(l) The Chairmanconduct of and four other members shallproceedings form a quorum for a meeting of

the Board.(2) In the absence of the

Chairman the memberspresent shall elect one of theirmember to be a temporary

Chairman of that meeting.(3) At any meeting of the

Board a decision, of themajority of the members

present and voting shall bedeemed to be a decision of theBoard and in the event of anequality of votes the Chairmanof the meeting shall have a

4


casting vote in addition to his

deliberative vote.

Chairman 61. Where on any questionto be determined there is anequality of votes, theChairman shall have acasting vote in additiondeliberative vote.

of the Boardto have acastingvote to his

Minister's The Minister may62. give to the Board

directions of a general or

specific nature as to the

performance by the Board of

any of its functions under this

Act in relation to any matter

appearing to the Minister to

affect the national interest, and

the Board shall give effect to

every such direction.

powers togivedirections

.

1999116 No. 2 Public Service Retirement Benefits

Authentica:- 63. The seal of thetion of Board shall not be affixed

to any deed, document andother instrument except in thepresence of the Chairman andthe Director General, or eitherthe Chairman or the DirectorGeneral and one other memberof the Board as the Board mayappoint in that behalf.

the seal

Reserve 64.-(I) The Board shallestablish, maintain and managea Reserve Account into which

Account

shall be paid -

(a) all portion of theincome from theinvestments;

(b) other moneysauthorized to bepaid into theReserve Account

1999 117No. 2 Public Service, Retirement Benefits

by any provision

of this Act;

f i n e s(c) a n dwhichpenaltiesleviedmay be

under -this Act.

(2) The payment into and outof the Reserve Account shallbe determined by the Board.

Board may 65. Notwithstanding anyprovisions of the Act, the Boardmay appoint any person orestablish any committee inrespect of any matter relating tothe management, investmentand administration of the Fund.

establisha committee

11 8 No. 2 1999Public Service Retirement Benefits

Powers to 66. The Board maygrant grant loans and make advances

to its officers and employees onsuch terms and conditions asthe Board may determine.

loans

Disqualifica- 67. The followingpersons shall be disqualifiedfrom being appointed as amember of the Board and shall

tion frommembershipof the Board

cease to be such a member if -(a) such a person is

of unsound mindor is otherwiseincapable of

hisperformingduties-

9

(b) such person hasbeen convicted ofan offence andsentenced toimprisonment for

-


a term of not lessthan one year;

(c) such person whoh a s beenconvicted of anoffence involvingf r a u d o rdishonesty;

issuch person(d)d e c I a r e dbankrupt

68.-(I) Every memberof the Board, or Committee,having directly or indirectly byhimself, his spouse or children,any interest in any matter underdiscussions by the Board orany committee of which he is amember, shall disclose to theBoard or committee, as thecase may be, the fact of his

Disclosureof interest

...


interest and the nature thereof

as soon as practicable after the

relevant fact has come to hisknowledge.(2) Any member of the Board

or committee who fails to

disclose his interest as

provided under subsection (1)

shall be guilty of an offence

and shall, on conviction, be

liable to imprisonment for a

term not exceeding six months

or to a fine not exceeding fifty

thousand shillings or to both.

Every declaration(3)under this section shall berecorded in the minutes of theBoard or committee, and afterany declaration made undersubsection (1) the member ofthe Board or committee, as thecase may be, shall-

1999 121Public Service Retirement BenefitsI No. 2

(a) not take part norbe present indecision of the

o rB o a r dcommitteerelating to thematter, andbe disregarded(b)for the purposesof constituting aquorum. of the

o rB o a r d ,committee forsuch deliberationor decision.

(4) No act or proceedings ofthe Board or committee shallbe invalidated on the groundthat any member of theBoard or committee hascontravened the provisionsof this section.


PART VIIOFFENCES

Offence for 69.-(I) Any personfailure to being an employee of thecomply with Fund, a member or an officerconditions who is subject to this Act who -

(a) for the purpose

o f e v a d i n gpayment of anycontribution byhim or someother personknowingly makes

f a I s ea n ystatement o rrepresentation, or

o rproducesfurnishes o rcauses to be

orproducedfurnished anydocument or


which he knowsto be false in ain a t e r i a Iparticular;misrepresents or(c)

fails to disclose

any material fact;(d) fails to pay to the

Fund within suchperiod as may beprescribed any

contributionwhich he is liable

to pay under this

Act;(e) obstructs or

assaults anyofficer or servant

of the Board inthe discharge ofhis duties assuch;


fails to comply(f)w i t h a n yregulations madeunder this Act asa result of whichthere is a loss tothe Fund or as aresult of which

the accounts ofi n d i v i d u a Imembers cannotbe credited with

theircontributions;fails without(g)lawful excuse to

p r o d u c ed o c u m e n t s

to berequiredunderproduced

this Act by him;

--


(h) obtains t h econsent o fe m p I o y e e srequired underthis Act byduress or undueinfluence-

(i) k n o w i n g I ydeducts from ane m p I o y e e ' ss a I a r y o rallowance anysum in respect ofa contribution tothe Fund greatert h a n t h ee m p I o y e e'scontribution-, orfails without(j)lawful excuse tocomply with theterms, of and


c o n d i t i o n sprovided underthis Act,

commits an offence and is liableupon conviction to a fine not

oneexceeding hundred-shillingsthousand or to

imprisonment for a term notexceeding two years or to both.

The court before(2)which any person is convicted

of an offence under this Act

may, without prejudice to any

civil remedy, order such

person to pay to the Fund the

amount of any contributions,

together with any interest or

penalty thereon, certified to be

due from such person to the

Fund at the date of conviction;

and such amount may be

recovered in the same manner

1999128 No. 2 Public Service Retirement Benefits,

as a fine and shall be paid into

the Fund for the credit, whereapplicable, of theaccounts of the members of the

Fund concerned.(3) Proceedings in respect

of any offence under this Actmay be commenced at anytime within the period of threemonths from the date on which

evidence in the opinion of the

Director General of Pensions

to justify a prosecution for the

offence comes to his

knowledge, or within a period

of twelve months after the

commission of the offence,

whichever is the later.Notwithstanding(4)

the contraryanything tocontained in any law respecting

suchthe jurisdiction of


magistrate, in all cases ormatters , arising under this Act,offences under this Act shall betriable by a court other than aprimary court.

Punishment 70. Where a person isconvicted of an offenceunder this Act, he shall beliable to a fine notthousand fifty

exceedingshillings or to

imprisonment for a tern) not

exceeding four years or to both.

71. Any action for therecovery of contributionsand all criminal proceedingsmay be instituted by theDirector General or otherofficer of the Fund appointedby the Board in that behalfand where action is instituted

Director

General toinstitute

proceedings

in a magistrate's


court, any person authorized bythis section may appear andconduct the case.

Liability of 72.-(I) Withoutmembers prejudice to the provisions

section 284A of the Penal

Code or section 3 of the Public

Officers (Recovery of Debts)

Act, 1970, no act or thing

done, or omitted to be done by

any trustee or by any officer,

servant or agent of the Board

shall, if done or omitted to be

done in good faith in execution

or purported execution of his

duties as a trustee, officer,

servant or agent, shall subject

that person to any action,

liability or demand.

Cap. 16Act No.7of 1970

141


(2) The provisions ofsubsection (1) shall apply inlike manner in relation toliability of members of theInvestment Panel.

PART VIIITRANSITIONAL PERIOD ANDMISCELLANEOUS PROVISIONS

Repeal of 73.-(1) The PensionsOrdinance is hereby repealed.Pensions

Ordinance (2) All persons who, immediatelybefore the commencement date,were receiving pension, allow-ances, additional benefits or otherretirement benefits granted underthe provisions of the Pensions Or-dinance which are similar to thoseset out under section 20(4) of thisAct, shall continue to receive thosebenefits as if the Pensions Ordi-nance had not been repealed.

Cap.371

(3) All the employees whowere immediately before the

--P,


Actcommencement of thisqualified under the pensionscheme shall on attainmentof retirement age be entitledto receive their pension forthe service they rendered inthe S e r v i c e before t h ecommencement date plus theremaining portion of thepension entitlement underthis Act.

74.-(I) Subject to the provisions

of this Act,, all written laws,

orders, regulations and rules

enacted before the

commencement date shall, and

until they are revoked or

replaced, continue in force on and

after the commencement date and

be construed as if they have been

made under this Act.

Continuanceof laws


Unless the context(2)requires otherwise anyreference in any written law tothe Pensions Ordinance shallbe construed as references tothe Public Service RetirementBenefits Act, 1999.

Transfer of theSubject to75.provisions of this Act,powers, rights, privileges,duties, liabilities or obligationswhich, immediately before thecommencement date were those

allpowers,rights,liabilities

and duties

exercisable by persons in accor-dance with the provisions ofthePensions Ordinance shall as frointhat day devolve on the PensionsFund.


Transfer of the76. toSubjectproperty provisions of this Act and to

any direction of the Minister,all property and assets otherthan land which immediatelybefore the commencement date

were vested in the Ministryof Finance, Pensions Department ,

or in any person on behalf of

the Pensions Department shall,

from the commencement date, vest

in the Board.

Subject toExisting 77. thecontracts allprovisions of this Act,

deeds, bonds, agreements,instruments and workingarrangements subsistingimmediately before thecommencement date affectingany of the property transferredshall be oil full force and effectV


against or in favour of the

Board and enforceable as fully

and effectually as if instead of

the Pensions Department the

Board has been named therein

or had been a party thereto.

78.-(l) Subject to the provisions

of this Act neither the repeal of

the repealed Act nor anything

contained in this Act shall

affect any person's liability to

be prosecuted or punished for

offences committed under the

repealed Act before the

commencement of this Act or

any proceedings brought or

sentence imposed before that

day in respect of that offence.

Continuanceof criminaland civilproceedings

to theSubject(2)provisions of this Act, any


proceedings whether civil orcriminal or cause of action

o r e x i s t i n gpendingbefore theimmediately

commencement date by oragainst the Pens-ionsDepartment or any personacting on behalf of thePensions Department may becontinued or instituted by oragainst the Board as it mighthave been by or against thePensions Department or suchperson as if this Act had notbeen passed.

Continuance 79.-(l) Every person who

immediately before the

commencement date was

employed as an officer or

employee of the Pensions

Department shall on and after

of serviceby officers

and employees

.


that date be transferred to theemployment of the Fund.

Upon the(2)establishment of the Boardpursuant to section 32 theallocation of employees to theFund shall be effected subjectto prior arrangement madebetween the Treasury and theFund.

80. Where immediatelybefore the commencementdate -

Pendingdisciplinaryproceedings

any disciplinary(a)proceedings havebeen initiatedagainst any

oremployeeo f f i c e r o remployee of theP e n s i o n s


Department andsuch proceedingsare still pendingbefore the formerP e n s i o n sDepartment or inthe course ofbeing heard orinvestigated byt h e f o r m e rP e n s i o n sDepartment orhad been heardor investigatedby the formerP e n s i o n sDepartment andno order ordecision hadbeen renderedthereon- or

r


(b) s u c ha n y

employee or an

officer has been

interdicted or

suspended,

the Board shall -

(i) in the case

f0

paragraph

(a), carry

on and

complete

t h e

hearing

investigati

on and

make an

order or

render a

decision,

a s t h e

case may


be and

(ii) in the case

f0

paragraph

deal(b),with

s u c hemployeeor officerin suchmanner asit deemsappropri-

a t e ,h a v i n gregard tot h eoffencea g a 1 n s t

him ,includingt h e

.


institutionn da

completio

n o fdiscipli-

n a r y

procee-dings and

ehtmaking of

any ordero r t h erendering

ao fdecisiona s t h e

case maybe, as if

t h o s ediscipli-

n a r yprocee-


dings had

b e e ncommenc-ed by theBoard towhich theemployeeo r a no f f i c e rwould beemployed.

Payments Subject to the81.provisions of this Act or anyother written law, an employeewho at the commencement datehas attained the age of fifty fivebut for the operation of section17 has continued in Service,shall become a member of theFund.

duringtransitionperiod

No. 2 Public Service- Retirement Benefits 1999 143

(2) A person who become amember of the Fund inpursuance to the provisionsof subsection (1) shall onretirement from Service begranted benefits under thePensions Ordinance for theperiod during which he wasnot a member of the Fundand shall be granted benefitsunder this Act in respect ofthe period during which hewas a member of the Fund.

,

I

82. Any person who at orduring his retirement periodand whose pension is fromzero shillings to twentythousand shillings pet monthshall be allowed to opt outfor the lump sum payment.

Option tothe paymentof lump sum

.


Employee's 83. Any employee orpayments to member who dies within. a

period of five years after thecommencement date regardless

be refundedand paid outof the Conso- of his contributions to the Fund-lidated Fund (a) his contributions

shall be refundedt o t h ebeneficiaries orlegal personalrepresentativesby the PermanentSecretary to the

• . ofMinistryFinance-

9

his pension and(b)

other benefitsshall be paid tohis beneficiariesor legal personalrepresentativesu n d e r t h e

.

- - -f


P e n s i o n sOrdinance as ifthis Act had not

been enacted.

Employees Notwithstanding84.anything to the contrary, anyperson or category of personswho was covered under thePensions Ordinance or anyother written laws and who isnot covered under this Act,shall continue to enjoy all therights and benefits conferredunder that law as if this Acthad not been enacted.

under thePensions

Ordinance(Cap. 37 1)to continueunder thesame


Paymaster It is hereby85.-(I)

General declared that the PaymasterGeneral shall be thecustodian of the Fund untilwhen the Board becomesoperational and

to becomecustodian

of the Fund in fullshall be

responsible for all the paymentsmade transitionduring theperiod.

Amendment of 86. The Income Tax Act,1973 is amended by deletingparagraph (c) of subsection (2)

section 3 of

the Income TaxAct, of section 2 and byAct No.33 renumbering paragraphs (d) and

(e) as paragraphs (c) and (d)respectively.

of 1973

1999 147Public Service Retirement BenefitsNo. 2Amend- 87. The Tanzania Intelligence and

Security Act, 1996 is amended mSection 6 by deleting a full stopwhich appear at the end of subsec-tion (2) and by inserting thereat thefollowing phrase ''or as may be pro-vided for by or under the PublicService Retirement Benefits Act,1999.

ment ofsection 6of theTanzaniaIntelli-gence andSecurityAct. 1996Act No.15 of1996

SCHEDULE

(Under sections 8, 12, 13, 14, and 15)

BENEFITS:A. (Subsidiary benefits in respect of sickness,

funeral, marriage, maternity).The amount of the benefit payable toa member for the period of sicknessshall not exceed the aggregate of 5per centum of amember's monthly contribution towards the

Scheme multiplied by six.

(Withdrawal benefits in respect of emigrationB.or withdrawal)The amount of benefit shall be the

I


balance of the contribution by both amember and employer towards theScheme at the date of payment afterdeduction of any subsidiary benefitdrawn by a member.

Passed in the National Assembly on the 5th February, 1999.

Clerk of the National Assembly

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