PROBLEMS AND CHALLENGES FACED BY THE CIVIL SERVICE RETIREES IN

ACCESSING SOCIAL SECURITY BENEFITS FROM NSSF IN KIGAMBONI DISTRICT.

ANNASTAZIA CLEMENT KAYAGO

RESEARCH REPORT SUBMITTED IN PARTIAL FULLFILLMENT OF REQUIREMENTS

FOR THE BACHELOR DEGREE IN MANAGEMENT OF SOCIAL DEVELOPMENT OF THE
MWALIMU NYERERE MEMORIAL ACADEMY.

JUNE 2023

i
 ABSTRACT

The study was conducted to assess youth access problems and challenges faced by the civil service
retirees in accessing social security benefits from NSSF in kigamboni district. Specifically, the study
aimed at identifying the current procedures in processing pension benefits in NSSF, Examining the
challenges faced by pensioners or retirees in accessing pension benefits in NSSF and Explore measures
taken by NSSF as social security provider in Tanzania in addressing challenges faced by retired civil
servants in claiming pension benefits.

The study adopted a cross-sectional research design, where by both primary and secondary data were
collected. Primary data were collected through an in-depth interview and secondary data were collected
from various literature sources. A total of 30 respondents were involved through simple random and
purposive sampling. Qualitative data collected through the in-depth interview was analyzed through
thematic analysis.

Generally, the study findings from the study shows that beneficiaries of pension schemes often face
similar challenges when claiming their old age benefits. Retired civil servants in particular face
significant difficulties, which are a national concern. This study sheds light on critical issues that must be
addressed to prevent old age poverty, especially among retired civil servants in Tanzania.

The study recommends that in addressing these issues will require a concerted effort from government
officials, policymakers, and other stakeholders. By working together to improve pension benefits and
support retired civil servants, we can ensure that these individuals are able to live with dignity and
security in their golden years.

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 ACKNOWLEDGEMENT

First of all, my deepest gratitude goes to God for special guidance, grace and blessings to accomplish my
special project.

I would like to express my deepest gratitude to my special project supervisor NAME for his guidance and
constructive comments right from the start to the end of this research.

Also, I could not have undertaken this special project without permission from Dean of Student and
NSSF officials. I would also like to thank all respondents for their willingness to provide vital responses
to this study otherwise; I would have not made it without their help.

Lastly, I would like to extend my sincere gratitude to my parents and colleague for their support and
encouragement throughout the study.

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LIST OF ABREVIATION

COSTECH - The Tanzania Commission for Science and

Technology

GEPF - Government Employee Pension Fund

LAPF - Local Authority Pension Fund

MIS - Masters in International Social Welfare and Health

Policy

NSSF - National Social Security Fund

PPF - Private Parastatal Fund

PSPF - Public Sector Pension Fund

TSH - Tanzania Shilling

URT - The United Republic of Tanzania

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 TABLE CONTENTS

CHAPTER ONE..........................................................................................................................................1
1.0 INTRODUCTION.................................................................................................................................1
1.1 Background Information...............................................................................................................................1
1.2 Problem Statement.........................................................................................................................................2
1.3 Justification for the study..............................................................................................................................3
1.4 General Objective..........................................................................................................................................3
1.4.1 Specific Objectives......................................................................................................................................3
1.4.3 Research Questions.....................................................................................................................................4
CHAPTER TWO.........................................................................................................................................5
2.0 LITERATURE REVIEW.....................................................................................................................5
2.1 Conceptualization of key terms.....................................................................................................................5
2.1.1 Social Security.............................................................................................................................................5
2.1.2 Retiree / Pensioner......................................................................................................................................5
2.1.3 Benefit of Social Security Funding to Retirees in Tanzania.....................................................................6
2.2 Social Security Programs in Tanzania..........................................................................................................7
2.2.1 The Role of Social Security in Tanzania....................................................................................................7
2.3 Empirical Literature review..........................................................................................................................8
2.4 Theoretical Framework.................................................................................................................................9
2.4.1 The Insurance Theory.................................................................................................................................9
2.5 The Conceptual Framework........................................................................................................................10
CHAPTER THREE..................................................................................................................................11
3.0 RESEARCH METHODOLOGY.......................................................................................................11
3.1 Description of the study area.......................................................................................................................11
3.2 Study Population..........................................................................................................................................11
3.3 Sample Size and sampling procedure.........................................................................................................11
3.4 Data Collection Tools and Techniques.......................................................................................................12
3.5 Data Analysis/ Interpretation......................................................................................................................12
CHAPTER FOUR.....................................................................................................................................14
4.0 FINDINGS AND DISCUSSION........................................................................................................14
Overview.............................................................................................................................................................14
4.1 Respondents Information............................................................................................................................14
4.2.1 Active membership with NSSF.................................................................................................................16
4.2.2 Pension Application process.....................................................................................................................17
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 4.2.3 Processing Pension Benefits......................................................................................................................17
4.2.4 Payment Provision to the retiree..............................................................................................................17
4.3 Challenges faced by pensioners or retirees in accessing pension benefits in NSSF.................................18
4.3.1 Insufficient Payments................................................................................................................................18
4.3.2 Ignorance on the Scheme Operation........................................................................................................19
4.3.4 Delay of payments.....................................................................................................................................19
4.3.5 Misuse of members’ contributions...........................................................................................................20
4.4 Measures taken by NSSF as social security provider in Tanzania in addressing challenges faced........21
4.4.1 Awareness Creation Campaign................................................................................................................21
4.4.2 Pension Schemes reform...........................................................................................................................22
CHAPTER FIVE.......................................................................................................................................23
5.0 CONCLUSION AND RECOMMENDATION................................................................................23
5.1 CONCLUSION.............................................................................................................................................23
5.2 RECOMMENDATIONS.............................................................................................................................23
REFFERENCES........................................................................................................................................25
Appendix 1: Interview guides..................................................................................................................27
1. An interview guide with the retired civil servants...............................................................................27
2. An interview guide with the NSSF service provider (staff)................................................................29

vi
 CHAPTER ONE

1.0 INTRODUCTION

1.1 Background Information

Despite the Tanzanian Government's numerous efforts to improve the pension sector, retirees continue
to face significant challenges, including delays in accessing their terminal benefits. This issue demands
immediate attention and intervention (Muthondeki et al., 2020). Many retired workers, particularly those
who served in the civil service, rely on their pensions as their primary source of income after retirement
(ISSA, 2019). Therefore, it is crucial to ensure prompt payment of pensions and eliminate avoidable
delays.
One of the most significant obstacles faced by retired civil servants in accessing their terminal benefits
is the delay in payment. This has been a long-standing issue for many retirees, particularly those from
the public service. It is not uncommon for retirees to wait for over a year before receiving their
pensions, causing significant financial strain and hardship (Mitchell & John, 2021).
It is imperative that the Tanzanian Government takes swift action to address this problem and ensure
that retirees receive their terminal benefits in a timely and efficient manner (Kaare, 2019). This will not
only alleviate the financial burden on retirees but also demonstrate the government's commitment to
supporting its citizens in their retirement years. Feldstein (2020) suggested that by streamlining the
pension payment process and eliminating unnecessary delays, the government can provide much-needed
relief to retired civil servants and ensure their financial security in their golden years.

The issue of delayed payment of terminal benefits for retirees in Tanzania has become a matter of great
concern (URT,2020). Reports indicate that some retirees have passed away before accessing their
rightful pension, leaving their dependents in a state of financial distress. The situation is further
compounded by the challenges faced by relatives who must navigate a complex bureaucracy to obtain
the pension.

World Bank (2019) reported that, it is not uncommon to find retired workers queuing at the Ministry of
Finance and Social Security Funds offices, frustrated by the delay in processing their pension payments.
This delay has had a negative impact on their purchasing power, leaving them struggling to make ends
meet.

Given the gravity of this situation, it is imperative that further research be conducted to identify the root
causes of the problem. Existing studies have highlighted issues such as the lack of pertinent records
regarding employees' monthly contributions, insufficient benefits, and delays in payment (NSSF, 2019).
1
However, a more comprehensive study is needed to fully understand the challenges faced by civil
service retirees in accessing formal social security benefits in Kigamboni district.

1.2 Problem Statement

Retirement is a time for relaxation and enjoyment (ILO, 2021), but it can also be a time of financial
stress. Many retirees rely on their pension payments to cover their basic needs, such as housing, food,
and healthcare. Unfortunately, delays in pension payments can cause significant hardship for retirees,
especially those who are already struggling to make ends meet. It is essential that we address these
issues and work towards a solution that ensures timely and reliable pension payments for all retirees
(ISSA, 2019).

In Tanzania, retirees face significant challenges when it comes to receiving their pension payments,
which requires immediate attention. After retiring, the majority of public workers rely on their monthly
pension as their primary source of income (URT, 2019). Social security serves as a vital social insurance
and assistance arrangement that protects employees and the population against various risks, including
social life stress, diseases, and economic hardship.

However, the delay in benefit payments poses significant challenges to most social security scheme
members in Tanzania and many other countries worldwide. The challenges facing most members of
social security schemes in Tanzania include delayed pension or retirement benefit payments and small
pension amounts. As a result, retirees experience a more difficult life, which is unacceptable (NSSF,
2019).

The Social Security Funds collect monthly deductions from workers in the country, but unfortunately,
the government borrows this money for various activities, such as construction projects (Mwaikambo,
2022). Sometimes, the government delays reimbursing this money, leading to delays in pension
payments to clients of the Social Security Funds. A prime example is the government's use of funds
allocated for East Africa Community retirees for other activities, resulting in delayed payments and
causing difficulties in their daily lives (URT, 2020).

It is crucial to address these issues and ensure that retirees receive their pension payments on time. The
government must prioritize the allocation of funds to the Social Security Funds to prevent delays in
payments and improve the lives of retirees. It is our responsibility to ensure that retirees receive the
support they need to live a comfortable life after years of dedicated service to their country.

2
3
1.3 Justification for the study

The study presented herein offers valuable insights to policymakers and employers on practical
approaches to addressing the challenges associated with retiring employees. By examining the nature of
the social security system and the obstacles faced by the government in providing adequate social
security services to retirees, this study provides a comprehensive understanding of the real situation
regarding social security for retiring employees. Armed with this knowledge, policymakers can identify
effective strategies to ensure the provision of social security funds to retiring employees.

Furthermore, this study serves as a guide to government agencies, employers, and other stakeholders
involved in the social security system. It highlights the key issues related to challenges, measures, and
poor provision of social security funds to retiring employees. This information can be used to inform
policy decisions and improve the overall effectiveness of the social security system.

Also, this study contributes to the body of research on social security systems. Its findings provide a
reference point for future studies on the challenges and strategies used to address them, both
domestically and internationally. Additionally, the study underscores the need for social security
agencies to transform their systems to better serve vulnerable groups in society.

This study offers a wealth of information that can be used to improve the provision of social security
funds to retiring employees. Its insights are valuable to policymakers, employers, and other stakeholders
involved in the social security system. By leveraging this knowledge, we can work towards a more
effective and equitable social security system for all.

1.4 General Objective

The general objective of the study is to examine the problems and challenges faced by the civil service
retirees in accessing social security benefits from NSSF in Kigamboni District.

1.4.1 Specific Objectives

Specifically, the study aims to;

i. Identify current procedures in processing pension benefits in NSSF.

ii. Examining the challenges faced by pensioners or retirees in accessing pension benefits in
NSSF.
iii. Explore measures taken by NSSF as social security provider in Tanzania in addressing
challenges faced by retired civil servants in claiming pension benefits
4
1.4.3 Research Questions

i. What are the current procedures for processing pension benefits in NSSF?
ii. Examining the challenges faced by pensioners or retirees in accessing pension benefits in
NSSF.
iii. How does NSSF as social security provider in Tanzania address challenges faced by retired
civil servants in claiming pension benefits?

5
 CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Conceptualization of key terms

2.1.1 Social Security

Social Security is a crucial aspect of society that provides protection to those in need. It is a community
measure that addresses social and economic distress, which could otherwise lead to a reduction or
stoppage of income for retirees. This loss of income can be permanent or temporary, and it is essential
to ensure that retirees are covered by security schemes.

In this study, we adopt the definition of Social Security as the protection given to retirees from their
professional careers. We focus on primary school teachers who have retired and examine the extent to
which they are covered by security schemes. The terms "pensioner" and "retiree" are used
interchangeably in this study, referring to workers who have stopped working or reached the end of their
professional careers.

Social Security benefits are offered in various ways to help employees save for retirement, income, and
social distress, including sickness, employment injuries, occupational diseases, maternity, old age,
invalidity, and unemployment. The benefit payment is based on how much a retired person earned
during their career, with higher payments for those who earned more before retirement. Retirees who
contributed to social security schemes during their working years receive monthly remittances as a form
of gratitude and pension. This study aims to examine the gratitude and monthly pension paid to retired
primary school teachers. By doing so, we hope to shed light on the extent to which retirees are covered
by Social Security schemes and the effectiveness of these schemes in providing support to those in need.

2.1.2 Retiree / Pensioner

 Is an individual who has ceased working or has reached the end of their professional career (Merriam-
Webster, 2012). Retirement marks the beginning of a new chapter in life, free from the obligations of
work. Prior to retirement, an individual may hold a permanent and pensionable job. Therefore, the terms
pensioner and retiree are used interchangeably in this study. This research adopts the aforementioned
definition by examining primary school teachers who have retired from their professional careers.

6
2.1.3 Benefit of Social Security Funding to Retirees in Tanzania

Social Security funding provides critical financial assistance to retirees, ensuring that they receive a
steady source of income after leaving the workforce. This safety net is essential because it helps them
maintain their standard of living and meet their basic needs. It also ensures that retirees have access to
healthcare services, which can become increasingly costly over time. With Social Security income,
retirees can cover medical expenses and medication costs without any worries about running out of
funds or having insufficient savings.

Additionally, Social Security benefits are indexed to inflation, meaning that their value will increase
along with the cost of living. This feature is particularly important since the elderly population is
vulnerable to rising prices due to increasing healthcare costs and inflation's influence on traditional
savings accounts. Overall, Social Security funding ensures retirees feel financially comfortable in their
golden years while promoting social welfare for all citizens who reach retirement age.

Social Security funding in Tanzania provides vital financial support for retirees, ensuring their basic
needs and protection against poverty. With a steady income stream from Social Security, older citizens
can lead more dignified lives and maintain a sense of independence by being able to afford basic
necessities like food, shelter, healthcare, and utilities. Additionally, these benefits can help alleviate the
financial burden on families who may otherwise feel compelled to support their elderly loved ones
during retirement.

Moreover, Social Security funding has been instrumental in reducing income inequality among older
Tanzanians by providing a guaranteed minimum income and helping combat poverty levels. All in all,
this social welfare program gives retirees an assurance of security and enables them to live with greater
peace of mind during their golden years.

7
2.2 Social Security Programs in Tanzania

Tanzania's social security system is comprised of six Social Security Institutions (SSIs) on the mainland
and one scheme in the Isles. Historically, each of these schemes covered a specific group of people or
sectors, and each was established by different legislation. Unfortunately, the majority of Tanzanians are
vulnerable to social and economic insecurity, leaving them susceptible to the pangs of poverty. It is
imperative that measures are taken to ensure that they have access to some form of social protection to
alleviate their vulnerability.

A critical policy issue is how to make the lives and livelihoods of developing countries, such as
Tanzania, more secure against adversity and deprivation (Stern & Burgess, 1991). For instance, the SSIs
have been offering conventional benefits, such as old age pensions, survivors, and withdrawal benefits,
for years. However, these benefits are not responsive to the social security needs of their respective
members, particularly those who are vulnerable to social and economic insecurity in the Informal Sector
(IS) (Isaka, 2016).

To address this issue, it is necessary to develop a more comprehensive and inclusive social security
system that caters to the needs of all Tanzanians, regardless of their sector or occupation. This system
should be designed to provide adequate protection to those who are most vulnerable, including those in
the informal sector. By doing so, we can ensure that Tanzanians have access to the necessary resources
to improve their lives and livelihoods, ultimately reducing poverty and promoting economic growth.

It is essential to recognize the importance of social security in Tanzania and the need for a more
comprehensive and inclusive system. By addressing this critical policy issue, we can create a more
secure and prosperous future for all Tanzanians.

2.2.1 The Role of Social Security in Tanzania

Social Security serves as a crucial safety net for individuals and families in Tanzania who might
otherwise face financial hardship. The country's National Social Security Fund (NSSF) provides access
to life insurance, disability benefits, old age pensions, and other support structures to ensure the
financial stability of its citizens. In recent years, Tanzania's government has taken significant steps to
expand social security coverage by increasing the number of mandatory contributions made by both
employers and employees. Additionally, reforms have been implemented to guarantee that vulnerable
groups such as women and low-income earners receive adequate protection under the system. While
there are still challenges in ensuring comprehensive social security coverage for all Tanzanians, efforts
8
made thus far have provided significant relief for those previously at risk of economic vulnerability due
to health complications or inadequate retirement savings.

2.3 Empirical Literature review

The challenges faced by retirees in accessing their social security benefits have been extensively studied
in empirical literature. These challenges primarily include difficulties in understanding the complex
eligibility criteria (Cipriani & Fiorini, 2021), application procedures (Banks et al., 2019), and benefit
calculations (Simpson et al., 2021). Retirees often encounter problems related to delays in processing
applications (Grimlich, 1974), inadequate information from social security offices (Borsch-Supan et al.,
2006), and unresponsive customer service representatives (Pak, 2020). Furthermore, social security
fraud is a growing issue that impacts retirees' ability to receive their entitled benefits.

Research has suggested that factors such as age, income level, education, and digital literacy play a
significant role in access to social security benefits. To mitigate these challenges, policymakers should
prioritize simplifying eligibility criteria and application processes while investing in training programs
for customer service staff and implementing robust fraud prevention measures.

One of the biggest challenges facing retirees is navigating the complex and often confusing social
security system. Many retirees struggle to understand the eligibility criteria and application process,
which can lead to delays or even denials of benefits. Additionally, the prevalence of fraud and scams
targeting retirees can further complicate the process. To address these issues, policymakers should
prioritize education and outreach efforts to ensure that retirees are aware of their rights and the resources
available to them. By empowering retirees with knowledge and support, we can help ensure that they
receive the benefits they deserve. It is crucial to ensure that retirees can access their social security
benefits without undue hardship. By addressing the challenges, they face, policymakers can help ensure
that retirees receive the support they need to live comfortably in their golden years. Therefore, it is
imperative that policymakers take action to improve the accessibility of social security benefits for
retirees.

Furthermore, the COVID-19 pandemic has added a new layer of complexity to accessing social security
benefits, as noted by Li and Mutchier (2020). With social security offices closed or operating at reduced
capacity, retirees have had to rely on online resources and phone support to navigate the system. This
has underscored the importance of digital literacy, as highlighted by Behrendt et al. (2019), and access
to technology for older adults, as noted by Auten and Splinter (2019).

9
To ensure that retirees can access their benefits during times of crisis, policymakers should consider
investing in programs that provide digital training and support. This will help to bridge the digital divide
and ensure that older adults have the necessary skills and resources to navigate the system. Additionally,
there is a need for increased funding for social security offices to improve customer service and reduce
processing delays.
By addressing these challenges, policymakers can ensure that retirees receive the benefits they are
entitled to and maintain financial security in their retirement years. It is imperative that we prioritize the
needs of our aging population and provide them with the support they need to thrive in an increasingly
digital world.

2.4 Theoretical Framework

The study utilizes the Insurance theory to examine the challenges faced by retirees in accessing their
social benefits. The Insurance theory posits that individuals who are uncertain about their lifespan are
unable to accurately determine the amount they need to save during their active years to ensure adequate
retirement income in their post-retirement years (Charles, 2017). The theory emphasizes the importance
of saving during the middle period of one's life to ensure income smoothing throughout the life cycle.
However, relying solely on saving does not protect pensioners from the risk of underestimating their
lifespan, which could result in extreme poverty during their final years (Barr, 1992). Pension Insurance
is designed to safeguard the financial well-being of individuals in the event of unexpected longevity
(Overbye, 2005).

2.4.1 The Insurance Theory

According to the Insurance theory, individuals are motivated to purchase insurance or seek employment
with employers who offer insurance as part of their overall wage package to mitigate various risks. In
the case of old age pensions, individuals are assumed to join such systems or seek employment with
employers who offer such insurance to protect themselves against longevity risk. This means that they
want to be insured against the risk of their private funds running out before they pass away. The
Tanzanian civil servant pension scheme insures against longevity risk, providing a lump sum payment at
retirement and subsequent annuity payments (monthly payments) thereafter.

Furthermore, the Insurance theory provides valuable insights into the challenges faced by retirees in
accessing their social benefits. By understanding the importance of saving during the middle period of

10
one's life and the need for pension insurance to protect against longevity risk, individuals can make
informed decisions to ensure their financial well-being during their post-retirement years.

2.5 The Conceptual Framework

The conceptual framework depicted in Figure 1 illustrates the interrelationships among various
variables. Specifically, the model outlines how independent variables impact the accessibility of social
security benefits for retirees.

One of the primary challenges faced by retirees is the complexity of eligibility criteria, application
procedures, and benefit calculations. These complexities often lead to delays in processing applications,
inadequate information from social security offices, and unresponsive customer service representatives.

It is imperative to address these challenges to ensure that retirees receive the benefits they are entitled
to. By simplifying eligibility criteria and improving communication channels, we can enhance the
accessibility of social security benefits for retirees. This will not only benefit retirees but also contribute
to the overall well-being of our society.

Table 1; Conceptual framework showing challenges facing retirees in accessing social security
benefits.

Independent Variables Dependent Variable

Age

Economic Status

Eligibility Criteria Accessibility of Social

Security Benefits
Application Procedure

Delay in Payment

Benefit Calculation

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 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Description of the study area

The study was carried out in Kigamboni district of the Dar es Salaam region. This location was chosen
due to its convenience in terms of time, resources, and accessibility, as noted by Kothari (2004) as
important factors when conducting research. Additionally, this area is expected to have a high population
of retirees, making it an ideal location for collecting the necessary information for the study.

It is important to note that the selection of Kigamboni as the study site was not arbitrary. Rather, it was a
deliberate decision made after careful consideration of various factors. By conducting the study in this
district, we can ensure that we have access to the necessary resources and information to carry out our
research effectively.

Furthermore, the high population of retirees in Kigamboni presents a unique opportunity to gather
valuable insights into the experiences and challenges faced by this demographic. By focusing on this
specific group, we can gain a deeper understanding of their needs and preferences, and develop targeted
solutions to address their concerns.

3.2 Study Population

The targeted population for this study comprises retired NSSF pensioners residing in Kigamboni, Dar es
Salaam, who are encountering difficulties in accessing their social security benefits from NSSF in the
Kigamboni district of Dar es Salaam. The purpose of this study is to investigate the challenges faced by
retired NSSF pensioners in Kigamboni, Dar es Salaam, in accessing their social security benefits from
NSSF. The study aims to identify the root causes of these challenges and propose practical solutions to
address them.

Retired NSSF pensioners are a vulnerable group that deserves our attention and support. It is essential to
ensure that they receive their social security benefits in a timely and efficient manner, as this can have a
significant impact on their quality of life. By conducting this study, we hope to contribute to the
improvement of the social security system in Tanzania and promote the well-being of retired NSSF
pensioners in Kigamboni, Dar es Salaam.

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3.3 Sample Size and sampling procedure

To effectively address the study questions, a purposive sampling technique was utilized to gather data
from 30 respondents. This non-probability sampling method involves the deliberate selection of
participants by the researcher to align with the study's objectives (Miles & Huberman, 2015). The
rationale for this approach is that only retired civil servants who are claiming their old age pension from
NSSF and NSSF officers will be included in the study. The retired civil servants were chosen based on
their retirement status as defined by the law, rather than their professional background. This decision was
made due to the fact that the parameters used by NSSF to calculate pension benefits do not take into
account the pensioner's professional background.

By utilizing purposive sampling, the study was able to gather data from a specific group of individuals
who are most relevant to the research questions. This approach ensures that the data collected is of high
quality and directly applicable to the study's objectives. The selection criteria for the retired civil servants
were strictly adhered to, ensuring that the sample is representative of the population being studied.

3.4 Data Collection Tools and Techniques

This study utilized in-depth qualitative interviews with key respondents, including retired civil servants
and NSSF officers. The researcher aimed to gain a comprehensive understanding of the pension system
by examining the experiences of these two groups. During interviews with retired civil servants, the
researcher focused on understanding the amount of pension they received in relation to their life
situation. Additionally, the researcher explored how these individuals participated in providing pension
contributions to the NSSF during their employment.

Conversely, when interviewing NSSF officers, the researcher focused on how they organize, manage, and
coordinate old age pension activities for their members. This provided valuable insight into the inner
workings of the pension system and how it is managed. By conducting these interviews, the study aims to
shed light on the complexities of the pension system and provide valuable information for policymakers
and stakeholders.

13
3.5 Data Analysis/ Interpretation

The study utilized the content thematic analysis method to interpret the findings obtained from in-depth
interviews. The interpretation of data was conducted after data familiarization, coding, theme generation,
and finally, write-up. All findings and interpretations were conducted in accordance with the specific
objectives of this study. By utilizing the content thematic analysis method, we hope to provide a
comprehensive understanding of the current procedures in processing pension benefits and identify areas
for improvement.

14
 CHAPTER FOUR

4.0 FINDINGS AND DISCUSSION

Overview

The chapter presents and discusses findings of the study the presentation is organized according to the
research objectives and namely to identify the current procedures in processing pension benefits in
NSSF, Examining the challenges faced by pensioners or retirees in accessing pension benefits in NSSF
and Explore measures taken by NSSF as social security provider in Tanzania in addressing challenges
faced by retired civil servants in claiming pension benefits.

The following presentation is based on information gathered from interviews conducted between May
22nd and June 10th, 2023 in Kigamboni, Dar es Salaam, Tanzania. In addition, secondary data was
collected through a review of the NSSF guideline, Tanzania social security policies, and other literature
related to the research objectives. The processes of sorting, coding, and interpreting the collected data
were informed by both the research objectives and theoretical perspectives applied in the study.

It is important to note that the information presented in this report is the result of a rigorous and
thorough research process. The data collected was carefully analyzed and interpreted to ensure accuracy
and reliability. The findings presented here are intended to provide valuable insights into the topic at
hand and to inform future research and policy decisions.

Overall, this presentation serves as a comprehensive and informative resource for anyone interested in
the topic of social security in Tanzania. It is our hope that the information presented here will contribute
to a better understanding of the challenges and opportunities facing the Tanzanian social security
system, and ultimately lead to improved policies and practices in this important area.

4.1 Respondents Information

The research project involved conducting in depth interviews with a sample of 30 respondents. The
study population comprised 25 retired pensioners of the National Social Security Fund (NSSF) and 5
staff members of the NSSF headquarters located in the Kinondoni municipality of Dar es Salaam.

From table 1, it can be observed that, the minimum age of contributing to NSSF by retirees is 10 while
the maximum being 45, also, the minimum number for benefits is 2 and the maximum is 30.

15
The distribution and characteristics of respondents are presented in table 1 and 2 below;

Table 2: Respondents (retirees) involved in the study

Respondents ID Number of years contributed Number of years receiving pension.

R1 22 3
R2 17 5
R3 45 30
R4 31 13
R5 23 2
R6 34 4
R7 15 5
R8 20 5
R9 14 8
R10 23 7
R11 21 3
R12 15 6
R13 16 2
R14 12 2
R15 15 5
R16 12 2
R17 10 7
R18 16 2
R19 21 5
R20 22 3
R21 17 2
R22 33 9
R23 31 7
R24 13 3
R25 15 2

16
Table 3: Respondents (NSSF- staff) Used in the study.

Respondents ID Position Number of years worked

with retired servants

S1 Customer service officer 4

S2 Operation officer 7
S3 Benefit processing officer 5
S4 Benefit processing officer 4
S5 Senior benefit processing 15
officer

4.2 Procedures in Processing Pension Benefits In NSSF

It is obvious that, The National Social Security Fund (NSSF) in Tanzania is an organization that is
responsible for the management and processing of pension benefits for eligible individuals. This study
examined the procedures involved in processing pension benefits in NSSF because they are
comprehensive and essential to ensure that all employees receive the benefits that they are entitled to.
To achieve this the study interviewed five NSSF staff who provided the following information.

4.2.1 Active membership with NSSF

The first step in processing pension benefits in NSSF Tanzania is for the employee to have an active
membership with NSSF. The interviewed retired staff member S2 attempted to respond to the interview
questions and to share about the first procedure for pension benefit in NSSF. In her own words, the
respondent explained the importance of this crucial procedure.

“Once an employee is registered with NSSF, their contributions are calculated based on their monthly
salary. The employee is then required to contribute 10% of their monthly salary while the employer
contributes 20% on their behalf. These contributions are then submitted to the NSSF i-Pay system,
where the data is processed and updated.” Respondent S2

According to this information, it is clear that at NSSF benefit calculations are based on average
annual salary of the best 3 years out of last ten years, provided a contribution record of at least
180 contributions (15 years).

17
4.2.2 Pension Application process

The second step in processing pension benefits in NSSF Tanzania is for the employee to reach the
retirement age of 60 years or at least 55 years where a servant can willingly retire. This application
process and how it is carried out is well explain by respondent S1 below;

“At this point, the employee is required to apply for their pension benefits at any NSSF branch office.
The application process involves filling out an Application for Pension Benefits form, which should be
submitted along with the necessary documents such as National ID, Birth Certificate and Payroll
Information.” Respondent S1

This stipulates that, the scheme provides two kinds of old age retirement benefits for member who meets
the minimum requirements. This includes initial lump sum; the amount paid to the pensioner before
starting his or her pension.

4.2.3 Processing Pension Benefits

The third step in processing pension benefits in NSSF Tanzania is for the application to be reviewed by
NSSF officials. This step was well explained by respondent S5.

“The review process involves verifying the employee's eligibility for benefits and checking if the
application is complete and accurate. Once the review process is complete, NSSF officials will issue a
Pension Benefits Award Letter, which outlines the amount of pension the employee is entitled to receive,
the date of payment, and the conditions of payment.” Respondent S5

According to Respondent S5, the legibility for claiming benefits and the parameter of the current pension
system in Tanzania is explained under the Act of Parliament No. 28 of 1997 and the National Social
Security Fund Act [CAP. 50. R. E. 2017].

4.2.4 Payment Provision to the retiree

The fourth step in processing pension benefits in NSSF Tanzania is for the payment to be made to the
employee. Respondent S4 explained that “the payment is made through a bank transfer to the
employee's bank account, or by a check issued by NSSF. The timing of the payment and the payment
method are determined by the Pension Benefits Award Letter. Once the payment is made, the employee
is considered to have received their pension benefits.” Respondent S4

18
From the findings it is clear that, the procedures involved in processing pension benefits in NSSF
Tanzania are essential to ensure that employees receive the benefits they are entitled to. These
procedures involve an active membership with NSSF, contributions calculation, an application process,
review by NSSF officials and payment to the employee. By following these procedures, NSSF Tanzania
is a competent and reliable organization that helps retirees enjoy their retirement.
4.3 Challenges faced by pensioners or retirees in accessing pension benefits in NSSF

The interviewed retired civil servants attempted to respond to the interview questions and to share what
challenges they face when it comes to accessing their pensions. It was important to gauge the experience
of retired civil servant on challenges they face since they are insiders of the system, and so they are
primary to the immediate effect of those challenges.

4.3.1 Insufficient Payments

The study has revealed that retirees' payments are deemed insufficient by the respondents involved in this
research. These individuals have shared their reflections on the amount of pension they receive and to
what extent it helps them overcome household and social needs. One respondent, R12, expressed that the
pension received was not useful at all. The lump sum and monthly payments were meager amounts that
could not sustain their consumption needs at this stage of life.

R12 received only Tsh 2 million, an amount that is insufficient even to build a hut. Without the money
saved during their working years, they would be in a miserable state. R12 contributed to the scheme for
15 years and related the amount received to the number of years of contributions made. When asked
about the amount contributed during those years, R12 stated that the salary was small, resulting in low
deductions compared to the time of retirement.

”I received only Tsh 2 million, the amount which cannot be sufficiently even to build a
hut. If not, the money I saved for myself during working I would be very miserable”.
Respondent R12

During an interview with an NSSF administrator, it was communicated that retired civil servants
are often unaware of technical aspects of calculating pensions and variations of parameters along
pension schemes. It is evident that retirees are facing financial challenges due to insufficient
pension payments. This issue requires attention and action to ensure that retirees can live
comfortably and meet their basic needs.

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4.3.2 Ignorance on the Scheme Operation

The lack of understanding regarding the operations of pension schemes is a significant challenge faced by
retired civil servants, as revealed in a recent study. Hidden information on the calculation of benefits was
identified as a major issue by all interviewed participants. One respondent, R5, stated that he had never
been taught or given any information on the matter since joining the pension fund, nor even after
retirement. Another respondent, R17, expressed frustration at not knowing the formula used to calculate
his benefits, as he had never been informed by the National Social Security Fund (NSSF).

“I do not know the formula because I was never told by NSSF which formula is
used in calculating my benefits” R17.

The study found that retired civil servants were generally unaware of the formula used to calculate their
benefits, and when they inquired about it, the explanation was often too complex for them to
comprehend. This finding is consistent with a previous study by Mwaikambo (2022) on social security
systems in Tanzania, which revealed that many pension schemes in the country are not well understood
by their members. This knowledge gap regarding pension fund operations may motivate civil servants to
join and contribute to such schemes, but the ultimate outcome of their contributions and benefits remains
within the scheme itself.

It is crucial for pension schemes to provide clear and accessible information to their members,
particularly regarding the calculation of benefits. This will not only improve transparency and
accountability but also empower retired civil servants to make informed decisions about their financial
future.

4.3.4 Delay of payments

One of the most common complaints received pertained to delays in processing and paying benefits,
which persisted for several months. A retired civil servant shared his experience of having to visit the
facility almost every month before finally receiving his payment. This delay in payment has led some
retired civil servants to resort to offering bribes to expedite the processing of their benefits.
Unfortunately, this has resulted in a reduction of their pension income, as the amount owed or promised
has to be used to pay off the bribe.

20
“Sometimes, they always tell you that your file is still on process, and the process can take months to
complete, but when you give them some money, your files will be processed faster and on time, that’s
how I know they wanted bribery” R13

This issue is not unique to our organizations in Tanzania, as Kaare (2019) has also reported instances of
bribery in the National Social Security Fund (NSSF) in order to receive benefits. It is imperative that we
address this issue promptly and effectively to ensure that our beneficiaries receive their rightful benefits
in a timely and transparent manner.

4.3.5 Misuse of members’ contributions

During interviews with retired civil servants, it was revealed that there are widespread rumors regarding
the lack of trustworthiness of high-level officials at the National Social Security Fund (NSSF). These
individuals claimed that delays in receiving retirement benefits were linked to corruption and
embezzlement of the scheme's funds. Shockingly, it was alleged that NSSF was using members'
contributions as capital for investing in various projects, leading to a number of problems related to poor
project contracts and sustainability.

Furthermore, these retired civil servants claimed that NSSF officials were abusing public funds, resulting
in financial problems for the scheme. These allegations were supported by an audit report prepared by the
Controller and Audit General (CAG), which uncovered serious financial irregularities in the execution of
a joint venture project.

During interviews with NSSF staff, one respondent (labelled as R15) confirmed that the scheme uses
contributions from members to invest in various projects, with the returns and profits generated being
used to pay pensioners. It is imperative that these allegations are thoroughly investigated and addressed
to ensure the trust and confidence of NSSF members and the public at large. The misuse of public funds
is a serious offense that cannot be tolerated, and those responsible must be held accountable.

21
4.4 Measures taken by NSSF as social security provider in Tanzania in addressing challenges faced
by retired civil servants in claiming pension benefits.
The study found the most challenges faced by retired civil servants to be Insufficient payments,
ignorance on the scheme operation, delay of payments and the mis use of members contribution
was identified as major challenges faced by retired NSSF members in the process of accessing
their social benefits.

4.4.1 Awareness Creation Campaign

According to Respondent R23, the National Social Security Fund (NSSF) has a primary objective of
providing a comprehensive range of short-term and long-term benefits to its members and their families
who require insurance coverage. These benefits include Old Age, Invalidity and Survivors Pension,
Employment Injury, Social Health Insurance, Maternity and Funeral Grants Benefit services. The scheme
is financed through contributions at a rate of 20% of the employee's salary.

It is mandatory for employers to deduct a maximum of 10% of the employee's salary from their gross
salary as a contribution to the scheme. If necessary, the employer must add the remaining balance to meet
the required contribution rate of 20% per month. The NSSF staff is committed to providing such
information to its members and the public to help them understand the scheme's operations and
encourage new members to join.

To promote the scheme, NSSF has a dedicated scheme promotion unit under the marketing department,
responsible for educating and raising awareness about the importance of social security to community
members. The team uses various channels, including mass media and physical visits to rural areas,
schools, and universities, where potential customers are found. Additionally, the team reaches out to
foreigners coming to work in the country.

Furthermore, NSSF is committed to providing its members with a comprehensive range of benefits and
ensuring that they understand the scheme's operations. The scheme promotion unit plays a crucial role in
educating and raising awareness about the importance of social security to the community.

22
4.4.2 Pension Schemes reform

The challenges faced by retired civil servants in Tanzania are numerous and significant. Among
the most pressing issues identified in recent studies are the inadequate pension benefits, which
fail to meet the basic needs of retirees, and the burden of caring for other family members.
These challenges were found to be common among all the retired civil servants interviewed in a
study conducted by HelpAge International in 2019.
Further research conducted by the Legal and Human Rights Centre (LHRC & ZLSC, 2018) has
revealed that retired civil servants in Tanzania face a range of challenges, including receiving
insufficient lump sum and monthly pension benefits. This has resulted in many retirees being
unable to afford basic necessities, while others have been denied benefits altogether, such as
those who worked with the East African Community prior to its dissolution in 1977.
Additionally, many retirees are forced to wait an extended period of time before they begin
receiving their pension, further exacerbating their financial difficulties.
It is clear that the challenges facing retired civil servants in Tanzania are complex and
multifaceted. Addressing these issues will require a concerted effort from government officials,
policymakers, and other stakeholders. By working together to improve pension benefits and
support retired civil servants, we can ensure that these individuals are able to live with dignity
and security in their golden years.

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 CHAPTER FIVE

5.0 CONCLUSION AND RECOMMENDATION

The general objective of this study was to investigate, the problems and challenges faced by the civil
service retirees in accessing social security benefits from NSSF in Kigamboni District. The focus was
on three specific objectives (i) to identify current procedures in processing pension benefits in NSSF (ii)
to examining the challenges faced by pensioners or retirees in accessing pension benefits in NSSF and
(iii) to explore measures taken by NSSF as social security provider in Tanzania in addressing challenges
faced by retired civil servants in claiming pension benefits.

5.1 CONCLUSION

The findings of this study are based on a qualitative research design and are therefore limited to the
respondents who participated. However, the literature and experiences reviewed indicate that in
Tanzania, beneficiaries of pension schemes often face similar challenges when claiming their old age
benefits. HelpAge International's report highlights the fact that retired civil servants in particular face
significant difficulties, which are a national concern.

This study sheds light on critical issues that must be addressed to prevent old age poverty, especially
among retired civil servants in Tanzania. By considering the challenges faced by pension beneficiaries
and implementing measures to alleviate them, we can ensure that our retired civil servants are able to
live with dignity and security in their old age.

5.2 RECOMMENDATIONS

The study recommends the following;

I. To solve the challenge of ignorance the NSSF needs to improve her information system to
customers especially on the issue of how the operation and service delivery take place.
II. NSSF as a key provider to retired civil servants and their dependants has to find the best ways it
can in order to help retired civil servants accomplish and increase their old age security.
III. In order to extend its services to many Tanzanians and make people trust the scheme, various
innovations need to be put in place for winning the credibility of customers.

24
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 Appendix 1: Interview guides
Interview guide for understanding the experiences of retired civil servants in claiming their
old age pension from the National Social Security Fund (NSSF) in Tanzania: The study
based in Kinondoni municipality in Dar-es-salaam.

1. An interview guide with the retired civil servants

i. Can you share with me what does old age pension that you have received from NSSF
mean to you? Can you explain briefly about it?
ii. What is the retirement age at NSSF?

iii. How old were you when you retired?

iv. How does the old age pension help you? What changes do you now see in your life as
a result of receiving the old age pension?
v. What is the calculation formula? (How does the NSSF calculate the lump-sum?)

vi. What is the relationship between contributions and lump-sum benefits in NSSF?

vii. How did you contribute to the pension scheme before you retired?

viii. How many years did you contribute to the pension scheme?

ix. How much did you contribute each year?

x. Did you know the status of your benefits before you retired?

xi. If yes, how did you acquire this information?

xii. Did the information you got beforehand, correspond to the benefit you actually got
when you retired?
a. If not, why not?

xiii. If you did not know the status of your benefit beforehand, why did you not know?

xiv. What were the procedures when you claimed your old age pension from NSSF?

xv. What problems or challenges did you face, when you claimed your old age pension?

xvi. Do you have any recommendations for improving old age pension services to the
NSSF as the service provider and to the government?
xvii. Suggestions for improving the information given to civil servants before they retire
27
xviii. Suggestions for improving the actual delivery of benefits to retirees

xix. Suggestions for the procedures of acknowledging and dealing with complaints by
those who think the NSSF benefit calculation is wrong, or who believe they have
wrongfully been denied a pension
xx. Other suggestions (please specify)

28
2. An interview guide with the NSSF service provider (staff)
i. What are the current procedures for processing pension benefits in NSSF?

ii. How many years of contributions are necessary to get a full benefit?

iii. How is each year’s contribution calculated? (as a percentage of earnings? Other
method?)
iv. What is the retirement age?

v. How if the benefit calculated if a civil servant retires before retirement age?

vi. What are the procedures for processing claims? What are the procedures for receiving
[paying out] an old age pension?
vii. Can only the retired person him/herself claim the benefit, or can someone claim on
their behalf? (sons, daughters, other relatives etc)?
viii. How do you know that the person, who claims the benefit, is really the person he/she
claims to be? (How do you validate the identity of the claimant?)
ix. What problems or challenges do you face when processing and providing old age
pension?
x. Is there a problem with benefit fraud that is: people claiming benefits that are not
entitled to them?
xi. Do you have enough manpower to process the claims in reasonable time?

xii. How do you keep track of paid-in contributions?

xiii. If there are any problem or challenge: Do you have any suggestions as to how they
can be rectified?
xiv. How is the old age pension calculated in NSSF?

xv. How does receiving old age pension bring the changes in the life of the recipients of
the scheme?
xvi. Can the NSSF recipients know the status of their benefits before they retire?

a. If so, how can they find out?

b. If not, why not?

xvii. What benefits does NSSF get by receiving its members’ contributions?

xviii. In what ways does NSSF use the money it collects as contributions from its
29
 beneficiaries?
xix. Does NSSF use members’ contribution for starting development projects and/or
giving loans?
xx. How do retired civil servants contribute to the schem

30
31