Requirements for Implementation of a Universal Old Age Pension

Abstract

Yes, we receive pension in our village but there are others not getting it. I can't understand why they have not yet received support. Maybe the computer hasn't chosen them" Pensioner, Kwa Wazce Project Kagera-Tanzania (HAI, 2008:8). Tanzania is currently at a step closer towards the provision of a Universal Old Age Pension to its older people. The study into a feasibility of the programme, costs and their financing options was conducted in 2010 by the Ministry of Labour, Employment and Youth Development in collaboration with the Help Age International. This study which in fact emanates from such background has addressed the question of basic requirements for actual implementation using Mauritius, with more than 50 years of experience in providing non-contributory old age pension as a model. It was perceived that the long term Mauritian experience would be relevant to learn a lesson for Tanzania with a view to smoothening implementation process and overcoming associated obstacles in due course. In particular the study looked into institutional capacity, human resource requirements, delivery mechanisms, administration cost and programme monitoring and evaluation. The main data sources include both primary and secondary data from the MSS, MOF, NPF and CSO in Mauritius, Tanzanian Ministry of Labour (2010) and online published literature relevant to the study. Data were analyzed using both quantitative and qualitative techniques. The findings revealed that the successful implementation of a Universal Old Age Pension for Mauritius is the outcome of both progressive realization on one hand and coordinated institutional arrangements, regular training to its staff, and improved information and communication technology on the other hand. Pension payments are administered by the National Pension Fund (NPF) under the Ministry of Social Security. In contrast, actual transfer is made through post offices and commercial banks available throughout the country. The Ministry of Finance is responsible for timely allocation of funds according to the budget as requested by the Ministry of Social Security and approved by the parliament. For Tanzanian context, this study recommends the upcoming non-contributory pension system to follow independent components implementation model described in this paper and start as a pilot project in order to identify potential pitfalls and bottlenecks and to put in place necessary mechanism in addressing them before scaling up the programme at a national level. However, the decision criteria regarding priority regions would need to be politically palatable