A Dissertation Submitted in Partial Fulfillment of the Requirement
for the award of Master of Science in Accounting and Finance (MScA&F)
of Mzumbe University.
This study investigates on the Social and Economic impact of Social Security Funds
on Pensioners and the Funds' performance in Tanzania, using a case ofLAPF
Pensions Fund. The specific objectives of the study wereto examinethe economic and
social impact of LAPF Pensions Fund to its pensioners, to analyze the performance
of LAPF Pensions Fund (using both financial and non-financial measures) and to
assess the efficiency of LAPF Pensions Fund’s operations.
The study was based on a sample of 140 respondents. These wereLAPF retirees,
LAPF management officials and staff. The sample was obtained through simple
random sampling and purposive sampling. This was intended to obtain the required
and relevant data with regard to the objectives of the study. Questionnaires and
interviews were used as data collection tools to assist in collecting relevant
information. Both qualitative and quantitative approaches were used for data
analysis. The data analysis was done through the use of content analysis.
The study revealed that the majority of the respondents, especially male retirees,are
entirely dependent on the terminal benefits paid by Pension Funds. The study further
revealed that there is a direct link between investing before retiring and the status of
life after retirement.
Furthermore the research also revealed that there is a cause and effect relationship
between employee satisfaction and organization's performance. This is because a
satisfied employee serves customers better and thus have a positive impact on
organization's goodwill.
Moreover, the study revealed that incompetent employees make errors in processing
benefit claims that necessitate reworking of the claims. This increases the operating
costs that reduce the cash flow status of the Fund.Thus high employee morale lead to
shorter payment periods of benefit claimsthusmembers’ satisfaction which in turn
increases the membership base of the Fund and in the long run increases
contributions that boost the cash flow. On the other hand, low morale, ignoring
employees’ suggestions and incompetent employees, all together, result in to
employees’ dissatisfaction. This may in turn prolong the benefit payment cycle time,
which results to member’s dissatisfaction. Eventually this results to delay in
contributions which at the end affect the Fund’s cash flow.