This Act was repealed on 2018-07-01 by Public Service Social Security Fund Act, 2018.
This is the version of this Act as it was when it was repealed.
Public Service Retirement Benefits Act
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Tanzania
Public Service Retirement Benefits Act
Chapter 371
- Published in Tanzania Government Gazette
- Commenced on 1 July 1999
- [This is the version of this document as it was at 31 July 2002 to 22 May 2003.]
- [Note: This legislation was revised and consolidated as at 31 July 2002 and 30 November 2019 by the Attorney General's Office, in compliance with the Laws Revision Act No. 7 of 1994, the Revised Laws and Annual Revision Act (Chapter 356 (R.L.)), and the Interpretation of Laws and General Clauses Act No. 30 of 1972. All subsequent amendments have been researched and applied by Laws.Africa for TANZLII.]
- [Repealed by Public Service Social Security Fund Act, 2018 (Act 2 of 2018) on 1 July 2018]
Part I – Preliminary provisions (ss. 1-3)
1. Short title
This Act may be cited as the Public Service Retirement Benefits Act.2. Application
This Act shall apply to all Government employees employed in Tanzania as well as to employees employed by Executive Agencies established under an Act of Parliament.3. Interpretation
In this Act, unless the context otherwise requires—"annual pensionable emoluments" means the emoluments which would be taken for the purposes of computing any pension or gratuity granted to the member under this Act if he had retired from the Service in circumstances described in section 16;"benefit" means a retirement benefit payable under this Act;"Board" means the Board of Trustees of the Public Service Pensions Fund established by section 32;"child" includes a step-child, a child born out of wedlock and an adopted child;"commencement date" means the first day of July, 1999;"commuted pension gratuity" means the gratuity which might have been granted to the member under section 22 if he had retired from the Service at the date of his death in circumstances described in paragraph (e) of section 16;"compulsory retirement age" means the age referred to in subsection (3) of section 17, upon the attainment of which an officer shall retire;"constitutional office" means an office which is established by or under the Constitution of the United Republic of Tanzania1;"contract terms" in relation to employment means the terms whereby a person is employed on contract for a period of service with an eligibility for payment of a sum of money upon satisfactory completion of that period of service;"dependant", in relation to a deceased officer, means—(a)where the deceased officer was a male, his widow or if he was married to two or more wives, his widows;(b)where the deceased officer was a female, the husband of such deceased officer;(c)every child of the deceased officer who was wholly or substantially dependent upon the deceased officer’s income for his livelihood immediately preceding the death of the deceased officer;(d)the immediate parents of the deceased officer, who satisfies the deceased officer’s employer that they were wholly or substantially depend upon the deceased officer’s income for their livelihood;"Director-General" means the Director-General of the Public Service Pensions Fund appointed under section 34;"employee" means any person who—(a)is employed in Tanzania under contract of service or apprenticeship with an employer, whether by way of manual labour, clerical work or otherwise and howsoever paid;(b)is permanently resident in Tanzania and is employed under a contract of service;(c)is permanently resident in Tanzania and is employed outside Tanzania under a contract of service with an employer in Tanzania by whom he is paid,but does not include any person of eighteen years and twenty one years receiving full time education or receiving full time training in respect of which he does not receive salaries, or any person under the apparent age of eighteen years;"employee’s contribution" means that portion of a statutory contribution declared under section 41 to be the employee’s contribution;"employer" means the person with whom the employee entered into a contract of service or apprenticeship, and who is responsible for the payment of salaries of the employee;"employer’s contribution" means the fifteen per centum of the employee’s salary which is provided under section 40 to be the employer’s contribution;"Fund" means the Public Service Pensions Fund established by section 31;"incapable of work" and cognate expressions mean, in relation to any person, incapacity for work by reason of some specific disease or bodily or mental disablement, and also includes references to any person deemed to be so incapable under this Act;"member of the family" when used in relation to a person not generally subject to local customary law means the wife, husband, father, mother, grandmother, step-father, step-mother, child, grandchild, brother, sister, half-brother or half-sister, and when used in relation to a person generally subject to local customary law means such persons as local customary law recognises as members of the family;"member of the Fund" means an employee who is a member of the Public Service Pensions Fund or a person registered as a member of the Fund or a person registered as a member of the Fund;"Minister" means the Minister responsible for Finance;"month" means a period of consecutive thirty days;"non-pensionable office" means an office which is not a pensionable office;"paid" means paid in money or money’s worth, and where it has reference to a date of payment means the date on which 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 provisions of this Act;(b)in respect of other public service, means emoluments which count for pension in accordance with the laws or regulations in force in that Service;"Pensions Ordinance" means the Pensions Ordinance2;"public officer" or "public department" means every officer or department invested with or performing duties of a public nature, whether under the immediate control of the President or not, and includes an officer or department under the control of a local authority, the community or a public corporation;"Public Service" means service in the Government;"qualifying pensionable service" means—(a)any period of continuous service rendered by a member since his becoming a member of the scheme and includes periods of absence from duty or leave with not less than half salary; and(b)any period of continuous Service rendered by a member immediately prior to his becoming a member of the scheme during which he was employed by a Government on contract terms or on other than temporary terms daily paid or casual basis and during which he was governed by any employees’ terminal benefits scheme under which the terminal benefit or retirement took the form of payment of a pension, and includes any periods of absence from duty or leave with not less than half salary;"qualifying period" means service which may be taken into account in determining whether or not that leader is eligible by length of service for a pension or gratuity;"Reserve Account" means the Reserve Account established under section 64;"salary" means salary attached to a pensionable office, or where provision is made for taking service in a non-pensionable office into account as pensionable service, the salary attached to that office, including cost of living allowance incentive allowance, or any other additional emoluments as may be determined by the appropriate authority;"Scheme" means the Public Service Pensions Scheme established by section 4;"Service" means the Civil Service of the United Republic;"Service of Tanganyika" means Service in a civil capacity under the Government of Tanganyika or under the then East African Community before the 1st day of July, 1977 on permanent and pensionable terms under the General Fund Service and being a citizen of Tanganyika;"specified amount" means—(a)in relation to the period of service an annual amount equal to one five hundred and fortieth of the member’s annual pensionable emoluments for each completed month of his pensionable service;(b)in relation to the period of service an annual amount equal to the pension computation factor (which is applied to the member under the employee’s terminal benefit scheme by which he was governed prior to his becoming a member under this Act) of the member’s annual pensionable emoluments for each completed month of his pensionable service."specified office" means any office which the Minister for Finance may, by order published in the Gazette, specify for the purposes of this Act;"survivor" means any person who on the death of a member is entitled to a survivor’s benefit under this Act;"transition period" means the period between 1st July, 1999 to 30th June, 2004;"trustee" means a member of the Board including the Chairman;"year" means a period of consecutive twelve months.Part II – The Pension Scheme (ss. 4-5)
4. Establishment of the Scheme
There is hereby established a Scheme to be known as the Public Service Pensions Scheme.5. Membership of the Scheme
All employees who are confirmed in a pensionable office in the Service shall become members of the Scheme with effect from the date of commencement of this Act.Part III – Benefits conferred under the Scheme (ss. 6-30)
6. Employees' contributions to pension and gratuity as of right
7. Exemption from Income Tax Act
The pension, gratuity allowance or any other additional retirement benefits granted under this Act shall be exempted from income tax.8. Benefits in respect of age, invalidity, survivors, etc.
Subject to the provisions of this Act, the following classes of benefits shall be payable under the Scheme—9. Benefit as to compulsory age of retirement
10. Death gratuity
11. Survivor's benefit
12. Sickness benefit
13. Invalidity benefit
An invalidity benefit granted under section 16 of this Act shall be payable to any member who is so physically or mentally disabled as to be unemployable.14. Withdrawal because of marriage or maternity
A withdrawal benefit prescribed in this Act shall be payable to—15. Withdrawal because of emigration or unemployment in the Service
16. Scope of entitlement to pension, gratuity, etc.
Except for payments made pursuant to the provisions of sections 8, 9, 10, 11, 12, 13, 14, and 15 of this Act, no pension, gratuity or similar benefits shall be granted under this Act to any member except on his retirement from the Service in any one of the following cases—17. Retirement age
18. Service not qualifying for pension
No person or gratuity shall be awarded under this Act to any member in respect of any service—19. Emoluments to be taken into account when computing pension or gratuity
For the purposes of computing the amount of the pension gratuity of a member under this Act, the highest pensionable emoluments enjoyed by him within the twelve months preceding his retirement shall be used for calculating his pension.20. Pensions, gratuity and allowances for persons holding certain public offices
21. Benefits conferred on Chief Justice
22. Rates of pension and gratuity
23. Restriction on double benefit
No person being a member shall be entitled at any time to receive more than one benefit and in the event of a member qualifying for more than one benefit at the same time, the Board may in its discretion approve or seek the opinion of a member so qualified as to which one of the benefit was suitable to a member and the decision of the Board shall be final:Provided that the benefit to be granted shall be limited to an amount not exceeding the aggregate of his pensionable emoluments.24. Computation of pension upon transfer appointment
25. Gratuity where length of service does not qualify for pension
Every officer, otherwise qualified for a pension, who has not been in the Service for fifteen years, may be granted on retirement a gratuity not exceeding five times the annual amount of the pension which, if there had been no qualifying period might have been granted to him under the Act.26. Where service is terminated in public interest President may grant pension
Where an officer’s service is terminated on the ground that, having regard to the conditions of the Public Service, the usefulness of the officer and all the other circumstances of the case, such termination is desirable in the public interest, and the benefits cannot otherwise be granted to him under provisions of this Act, the President may, if he thinks fit, grant such benefits as he thinks just and proper, not exceeding in amount that for which the officer would be eligible if he retired from the Public Service in the circumstances described in paragraph (e) of section 16.27. President may exempt from certain conditions
28. Pensions, gratuity or allowance not to be assignable
A pension, gratuity or other allowance granted under this Act shall not be assignable or transferable except for the purposes of satisfying—29. Pensions when serving sentence
30. Approval of the National Assembly to increase, vary or modify benefits
Part IV – The Fund (ss. 31-36)
31. Establishment of the Fund
32. Establishment of the Board
33. Management of the Fund
The Board shall be responsible for the management and control of the Fund in accordance with the provisions of this Act.34. Appointment of the Director-General
35. Fund to be held by the Board of Trustees
36. Minister’s powers to make regulations
The Minister may, on recommendation of the Board, make regulations—Part V – Contributions and payments (ss. 37-51)
37. Sources of the Fund
The sources of the Fund shall be from—38. Contributions and payments to the Fund
39. Failure of employer to pay contribution to the Fund
40. Employer’s contribution
Every employer of a member shall be liable to pay monthly contributions in respect of the member at the rate of fifteen per centum of the member’s salary.41. Employee’s contribution
42. Contribution not transferable
Notwithstanding anything to the contrary contained in any written law—43. Refund of excess contributions
Any moneys paid to the Fund in excess of the amount for which any employer is liable in respect of an employee or in excess or in excess of the contribution payable for a contribution period may be refunded to the employer or both, as the case may be, in such manner as the Board may determine.44. Accounts of members
45. Members' rights to their accounts
It shall be the duty of the Director-General to inform member of the Fund on request about the welfare of the member’s account.46. Contribution to the Fund to be drawn from the Consolidated Fund
If the Fund is at any time unable to pay any sum which the Fund is required to pay under this Act, the sum required to be so paid shall be charged on and advanced to the Fund and the Fund shall as soon as practicable repay to the Government the sum so advanced.47. Exemption from stamp duty and income tax
48. Annual accounts and audit
49. Authority for withdrawals from the Fund
50. Report by the Board
The Board shall, within six months after the end of each financial year, make a report to the Minister on the operations of the Fund during that financial year, and the Minister shall lay a copy of that report before the National Assembly together with a copy of the statement of accounts required to be laid before the National Assembly by section 48.51. Actuarial evaluation of the Fund and Board’s recommendation to the Minister
Part VI – The Board (ss. 52-68)
52. Composition of the Board
53. Functions of the Board
The functions of the Board shall be—54. Duties of the Board
It shall be the duty of the Board—55. Powers of the Board to appoint and delegate
56. Temporary members
57. Tenure of office
Every member of the Board, shall hold office for a term not exceeding three years and shall be eligible for reappointment.58. Resignation and revocation of appointment
59. Vacation of office
A member of the Board shall be deemed to have vacated his office—60. Quorum and conduct of proceedings
61. Chairman of the Board to have a casting vote
Where on any question to be determined there is an equality of votes, the Chairman shall have a casting vote in addition to his deliberative vote.62. Minister’s power to give directions
The Minister may 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.63. Authentication of the seal
The seal of the Board shall not be affixed to any deed, document and other instrument except in the presence of the Chairman and the Director-General, or either the Chairman or the Director-General and one other member of the Board as the Board may appoint in that behalf.64. Reserve Account
65. Board may establish a committee
Notwithstanding any provisions of the Act, the Board may appoint any person or establish any committee in respect of any matter relating to the management, investment and administration of the Fund.66. Powers to grant loans
The Board may grant loans and make advances to its officers and employees on such terms and conditions as the Board may determine.67. Disqualification from membership of the Board
The following persons shall be disqualified from being appointed as a member of the Board and shall cease to be such a member if—68. Disclosure of interest
Part VII – Offences (ss. 69-72)
69. Offence for failure to comply with conditions
70. Punishment
Where a person is convicted of an offence under this Act, he shall be liable to a fine not exceeding fifty thousand shillings or to imprisonment for a term not exceeding four years or to both.71. Director-General to institute proceedings
Any action for the recovery of contributions and all criminal proceedings may be instituted by the Director-General or other officer of the Fund appointed by the Board in that behalf and where action is instituted in a magistrate’s court, any person authorised by this section may appear and conduct the case.72. Liability of members
Part VIII – Transitional period and miscellaneous provisions (ss. 73-87)
73. Repeal of R.L. Cap. 371
74. Continuance of laws
75. Transfer of powers, rights, liabilities and duties
Subject to the provisions of this Act, all powers, rights, privileges, duties, liabilities or obligations which, immediately before the commencement date where those exercisable by persons in accordance with the provisions of the Pensions Ordinance shall as from that day devolve on the Pensions Fund.76. Transfer of property
Subject to the provisions of this Act and to any direction of the Minister, all property and assets other than land which immediately before the commencement date were vested in the Ministry of Finance, Pensions Department or in any person on behalf of the Pensions Department shall, from the commencement date, vest in the Board.77. Existing contracts
Subject to the provisions of this Act, all deeds, bonds, agreements, instruments and working arrangements subsisting immediately before the commencement date affecting any of the property transferred shall be of full force and effect 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. Continuance of criminal and civil proceedings
79. Continuance of service by officers and employees
80. Pending disciplinary proceedings
Where immediately before the commencement date—81. Payments during transition period
82. Option of payment of lump sum
Any person who at or during his retirement period and whose pension is from zero shillings to twenty thousand shillings per month shall be allowed to opt out for the lump sum payment.83. Employee’s payments to be refunded and paid out of the Consolidated Fund
Any employee or member who dies within a period of five years after the commencement date regardless of his contributions to the Fund—84. Employees under the Pensions Ordinance [Cap. 371 R.L.] to continue under the same
Notwithstanding anything to the contrary, any person or category of persons who was covered under the Pensions Ordinance or any other written laws and who is not covered under this Act, shall continue to enjoy all the rights and benefits conferred under that law as if this Act had not been enacted.85. Paymaster-General to become custodian of the Fund
It is hereby declared that the Paymaster declared that the Paymaster-General shall be the custodian of the Fund until when the Board becomes in full operational and shall be responsible for all the payments made during the transition period.86. Amendment of Cap. 332
[Amends the Income Tax Act.]87. Amendment of Cap. 406
[Amends the Tanzania Intelligence and Security Service Act.]History of this document
01 July 2018
Repealed by
Public Service Social Security Fund Act, 2018
10 May 2013 amendment not yet applied
27 July 2012 amendment not yet applied
Amended by
Social Security Laws (Amendments) Act, 2012
06 August 2010 amendment not yet applied
28 May 2010 amendment not yet applied
01 July 2008 amendment not yet applied
Amended by
Finance Act, 2008
09 June 2008 amendment not yet applied
Amended by
National Prosecutions Service Act, 2008
25 April 2007 amendment not yet applied
01 July 2005 amendment not yet applied
Amended by
Finance Act, 2005
31 December 2004 amendment not yet applied
01 July 2004 amendment not yet applied
23 May 2003 amendment not yet applied
31 July 2002 this version
Consolidation
01 July 1999
Commenced
Cited documents 5
Act 5
1. | Katiba ya Jamhuri ya Muungano wa Tanzania, ya Mwaka | 4667 citations |
2. | Stamp Duty Act | 205 citations |
3. | Public Officers (Recovery of Debts) Act | 49 citations |
4. | Export Processing Zones Act | 29 citations |
5. | Tanzania Intelligence and Security Service Act | 2 citations |
Documents citing this one 17
Act 5
1. | Prisons Act | 85 citations |
2. | Police Force and Auxiliary Services Act | 56 citations |
3. | Judicial Service Act | 24 citations |
4. | Provident Fund (Government Employees) Act | 3 citations |
5. | Tanzania Intelligence and Security Service Act | 2 citations |
Judgment 4
Gazette 3
1. | Tanzania Government Gazette dated 2002-03-08 number 10 | |
2. | Tanzania Government Gazette dated 2003-08-01 number 31 | |
3. | Tanzania Government Gazette supplement number 10 dated 2007-03-09 number 10 |
Government Notice 3
Law Reform Report 2
1. | Review of the Legal Framework on Elderly Social Care in Tanzania | |
2. | The Scheme for Provision of Legal Services by Paralegals |
Subsidiary legislation
Title
|
|
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Public Service Retirement Benefits (Amendment) Regulations, 2011 | Government Notice 62 of 2011 |
Public Service Retirement Benefits (Amendment) Regulations, 2006 | Government Notice 111 of 2006 |
Public Service Retirement Benefits Regulations, 2003 | Government Notice 406 of 2003 |
Public Service Retirement Benefits (Minimum Pension) Order, 2002 | Government Notice 86 of 2002 |
Pensions (Additional Retirement Benefits to Specified Public Officers) Order, 1996 | Government Notice 17 of 1996 |
Survivors' Benefit for Dependants (Exemption) Notice, 1978 | Government Notice 87 of 1978 |