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This study investigated the extent to which the contribution of the members to the
Social Security Funds influenced their economic status when they retired. It was
conducted at NSSF Head Quarters and three Dar es Salaam Regional Offices. It used
case study design including the qualitative and quantitative researches as dominant
paradigms. Data was collected through four data collection techniques namely;
interview, questionnaires, non-participant observation and documentary review.
More specifically, it examined the ways social security funds keep members
contributions records, it identified challenges facing retirees when accessing services
from social security funds and evaluated strategies used by social security funds to
improve the benefits of the retirees. Finally, it established the relationship between
the contribution made by the members to Social Security Funds (SSF) before
retirement and the benefit they receive after retirement.
Findings revealed that electronic systems are used to keep members’ contributions
records. The second objective shows that formal Social Security Schemes are riddled
with problems such as; delay in payment of benefits, employers’ averting paying
contributions, insufficient members’ benefit, small interest rate, inflation and
bureaucracy. As regard the third objective several strategies are used including:
Development of investment policy, training employees to enhance their working
capacity and use of indexation to adjust retirees’ payment. Finally, findings show
that relationship between the contributions made by the members to SSF before
retirement is directly proportional to the benefit they receive after retirement.
It can be concluded that NSSF uses computerized system and well trained staff to
easily track, identify, capture, process members’ payment and overcome the
challenges faced by customers. It was apparent that the relationship between the
contributions made by the members’ retirement is directly proportional to the
retirement benefit they receive.
Based on the findings and conclusions, it is recommended that the Government
should regulate the relationship between the contributions made by the members to
NSSF before retirement to be proportional to the benefit they receive after
retirement. The SSF should also train, on regular basis, the workers on indexation
and ensure the sustainability of the computerised systems |
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