Assessment of the social and economic impact of Social security funds on pensioners and the funds' Performance in Tanzania a case of LAPF pensions fund
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Mzumbe University
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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.
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.
Keywords
Social security funds