Dissertation Submitted in (Partial) Fulfillment of the Requirements for the Award of the Degree of MSc. in Procurement Supply Chain Management (PSCM) of Mzumbe University 2013This 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 (NSSF) 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 NSSF 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.