A Dissertation Submitted in Partial Fulfillment of the Requirement For The
Degree of Master of Business Administration (MBA) of Mzumbe University
The purpose of the study was to identify the factors which influence the delay in
member’s benefits payments in Pension’s Scheme (social security schemes). The aim
of the work was to provide and correctly identify factors that lead to delay in benefit
payments and its effect to members and to the Pension schemes. The research sample
comprises of 90 respondents from NSSF and PPF staffs, contributing employers and
NSSF and PPF beneficiaries (Members).
The data was collected using documentary review, questionnaires, semi-structured and
unstructured interviews. The data collected was analyzed and presented tables,
narrative notes, numerical figures and percentages. The study found that the delay in
benefit payment is mainly brought about by failure or inability of the organization to
decentralize some of its decisions and functions, keep members records properly,
computerize benefit payment functions, and evasion of contribution.
The delay in promptly benefit payment has been observed to have several side effects
to the fund and the members. It has been reviled that members waste a lot of their
economic resources to frequently follow up their benefit, they also loose income which
could be earned, if their payment could be made earlier and get invested in profit
making ventures. The organizations loose credibility to customers and the general
public. This may lead to decline in future market share and high costs associated with
follow ups and processing benefit at a latter time.