CHAPTER 371
PUBLIC SERVICE RETIREMENT BENEFITS ACT

[PRINCIPAL LEGISLATION]

ARRANGEMENT OF SECTIONS

   Section

Title

PART I
PRELIMINARY PROVISIONS

   1.   Short title.

   2.   Application.

   3.   Interpretation.

PART II
THE PENSION SCHEME

   4.   Establishment of the Scheme.

   5.   Membership of the Scheme.

PART III
BENEFITS CONFERRED UNDER THE SCHEME

   6.   Employees’ contributions to pension and gratuity as of right.

   7.   Exemption from Income Tax Act.

   8.   Benefits in respect of age, invalidity, survivors, etc.

   9.   Benefit as to compulsory age of retirement.

   10.   Death gratuity.

   11.   Survivor's benefit.

   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.

   21.   Benefits conferred on Chief Justice.

   22.   Rates of pension and gratuity.

   23.   Restriction on double benefit.

   24.   Computation of pension upon transfer appointment.

   25.   Gratuity where length of service does not qualify for pension.

   26.   Where service is terminated in public interest President may grant pension.

   27.   President may exempt from certain conditions.

   28.   Pensions, gratuity or allowance not to be assignable.

   29.   Pensions when serving sentence.

   30.   Approval of National Assembly to increase, vary or modify benefits.

PART IV
THE FUND

   31.   Establishment of the Fund

   32.   Establishment of the Board.

   33.   Management of the Fund.

   34.   Appointment of the Director-General.

   35.   Fund to be held by the Board of Trustees.

   36.   Minister’s powers to make regulations.

PART V
CONTRIBUTIONS AND PAYMENTS

   37.   Sources of the Fund.

   38.   Contributions and payments to the Fund.

   39.   Failure of employer to pay contribution to the Fund.

   40.   Employer’s contribution.

   41.   Employee’s contribution.

   42.   Contribution not transferable.

   43.   Refund of excess contributions.

   44.   Accounts of members.

   45.   Members' rights to their accounts.

   46.   Contribution to the Fund to be drawn from the Consolidated Fund.

   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.

   51.   Actuarial evaluation of the Fund and Board’s recommendation to the Minister.

PART VI
THE BOARD

   52.   Composition of the Board.

   53.   Functions of the Board.

   54.   Duties of the Board.

   55.   Powers of the Board to appoint and delegate.

   56.   Temporary members.

   57.   Tenure of office.

   58.   Resignation and revocation of appointment.

   59.   Vacation of office.

   60.   Quorum and conduct of proceedings.

   61.   Chairman of the Board to have a casting vote.

   62.   Minister's power to give directions.

   63.   Authentication of the seal.

   64.   Reserve Account.

   65.   Board may establish a committee.

   66.   Powers to grant loans.

   67.   Disqualification from membership of the Board.

   68.   Disclosure of interest.

PART VII
OFFENCES

   69.   Offence for failure to comply with conditions.

   70.   Punishment.

   71.   Director-General to institute proceedings.

   72.   Liability of members.

PART VIII
TRANSITIONAL PERIOD AND MISCELLANEOUS PROVISIONS

   73.   [Repeal of R.L. Cap. 371.]

   74.   Continuance of laws.

   75.   Transfer of powers, rights, liabilities and duties.

   76.   Transfer of property.

   77.   Existing contracts.

   78.   Continuance of criminal and civil proceedings.

   79.   Continuance of service by officers and employees.

   80.   Pending disciplinary proceedings.

   81.   Payments during transition period.

   82.   Option of payment of lump sum.

   83.   Employee’s payments to be refunded and paid out of the Consolidated Fund.

   84.   Employees under the Pensions Ordinance [Cap. 371 R.L.] to continue under the same.

   85.   Paymaster-General to become custodian of the Fund.

   86.   [Amendment of Cap. 332.]

   87.   [Amendment of Cap. 406.]

SCHEDULE

CHAPTER 371
THE PUBLIC SERVICE RETIREMENT BENEFITS ACT

An Act to establish the Public Service Pensions Scheme, to provide for contributions to and payment of pensions, gratuities and other benefits in respect of the service of officers in the Government and to provide for the related matters.

[1st July, 1999]
[s. 1(2)]

Acts Nos.
2 of 1999
9 of 2000
11 of 2000

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 Act No. 9 of 2000 s. 4">

   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 Tanzania *;

   "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 Ordinance *;

   "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

   (1) A pension, gratuity or other benefits which may be granted under this Act shall consist of–

   (a)   contribution of a member;

   (b)   contribution of an employer;

   (c)   other grants or interests which may be received by the Fund or which may accrue from the investments made by the Scheme.

   (2) The contribution of a member and the contribution of an employer to the pension, gratuity or other benefits shall, to the extent that a member retires in accordance with the provisions of section 16 or is otherwise made to cease to becoming an employee in the service in circumstances which does not injure or lower the esteem of or render the public service in disrepute, be of right.

7.   Exemption from Income Tax Act Act No. 33 of 1973">

   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–

   (a)   benefits in respect of retirement age, survivorship and invalidity;

   (b)   benefits in respect of marriage, maternity or in respect of funeral;

   (c)   benefits in respect of marriage, maternity or in respect of emigration or withdrawal of any member which are withdrawal benefits.

9.   Benefit as to compulsory age of retirement

   (1) Subject to section 17 of this Act retirement benefit shall be payable to any person who being a member attains the age of sixty years and satisfies the Director-General that he has retired from regular employment.

   (2) Notwithstanding subsection (1), the age of retirement for officers of the Police Force shall be–

   (a)   in the case of officers of the rank of a Constable, the age of forty-five years;

   (b)   in the case of officers of the rank of a Corporal or Sergeant, the age of fifty years;

   (c)   in the case of officer of rank of Staff Sergeant, up to the rank of Inspector of Police, the age of fifty-five years;

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