Regulation and supervision funds: Analysis of factors necessitating the establishment of regulatory and supervisory framework of pension funds in Tanzania

The existing pension Industry seems to have many short-comings due to lack of regulatory and supervisory framework. The Social Security Sector in Tanzania is fragmented and the Social Security Funds are placed under different ministries with different operational and administrative rules and procedures res. In light of the potential need of regulatory and supervisory framework. this research examines whether there is rationale justifying its formulation in Tanzania. It also highlights areas within the pension industry that need immediate regulatory and supervisory attention and draws conclusions and recommendations on the efficacy of establishment of the regulator) and supervisory framework of Pension Funds in Tanzania. Specific objectives are examination of pertinent factors attracting regulatory and supervisory attention to Social Security Funds, identification of opinions of Social Security Stakeholders on establishment of the regulatory and supervisory framework and investigation of critical areas that need immediate regulatory and supervisory attention. In relation to factors attracting regulatory and supervisory attention, the field results revealed that factors attracting regulatory and supervisory framework, amongst others, are Risks ( 15.7%). Coverage (14.3%). Governance ( 1 2.9%), Benefit inadequacy ( 14.3%) and value of investments and funds held in trust of the pension funds ( 12.9%). In relation to critical areas that need immediate regulatory and supervisory attention, the empirical findings showed that the areas in question include investment strategies and policies (ranked l5t); Benefit value, formula and adequacy (ranked 2nd); Harmonization of Social Security Schemes and formulation of Regulatory and Supervisory Authority (ranked 3rd); Extension of coverage and membership (ranked 4th) and others as explained in subsection 4.2.2 of this report. In terms of the relationship between opinions of stakeholders and the need for regulating and supervising Pension Funds. the stud; shows that there is the direct relationship between opinions of stakeholders and the need for establishment of regulatory and supervisory framework of Pension Funds in Tanzania. In its concluding remarks, the study urges that. lack of Regulatory and Supervisory Framework for Social Security Funds is a significant problem which has to be addressed properly before it cause stringent and intricate implications on provision of Social Security protection to the Tanzanians by the Government and other players in the Social Security Sector. In order to overcome and curb this prevalent threatening menace, it is the considered recommendation of this study that, the Regulatory and Supervisory Authority be put in place within a reasonable minimum possible tim