A Research Report Submitted to Mzumbe University – Mbeya Campus College in Part of Partial Fulfilment for the Award of Bachelor Degree of Accountancy and Finance in Business Sector (BAF-BS) 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 study sample size was 160 taken from finite population of 1700. The study involved (54%) Male and (46%) Females. Data collecting instruments were interview questions and questionnaires. The data was collected using documentary review, questionnaires, semi-structured and unstructured interviews. The data collected was analyzed and presented tables, 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 revealed that members waste a lot of their economic resources to frequently follow up their benefits, they also loose income which could be earned, if their payment could be made earlier and get invested in profit making ventures. The organizations lose 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 later time. In view of the findings, a number of recommendations were put forward. These are based on how to improve records management, customer care, delegate some decisions and functions in order to reduce and keep cost in line and ensure timely benefit payment to beneficiaries, findings and recommendations advanced may be used to improve the situation