The Challenges and Prospects of Pension Fund Administration: the Case of Private Organization Employees Social Security Agency (Poessa)

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Date

2024-03-02

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A.A.U

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Abstract The study examines the practices and challenges of pension fund administration in a private organization employee social security agency in Ethiopia. The research collected primary data from key informants who had specialized knowledge about the pension fund administration practices of the agency. The researcher also utilized secondary data from various sources such as news articles, books, journals, and publications to supplement the findings. A descriptive study was employed and the sample for the study was selected using the census method, with forty-four respondents participating and completing a semi-structured questionnaire. The collected primary data was analyzed using medians and percentages via descriptive analysis with SPSS software. The major findings of the study highlight several significant factors impacting the pension fund administration practices of the agency. The absence of modern information technology and software was found to negatively affect regular job tasks, emphasizing the need for technological upgrades. The lack of experienced professionals also posed challenges to the agency's operations, suggesting the importance of recruiting and retaining skilled staff. The study also noted that banks and private employers directly influence the agency's day-to-day activities. Additionally, the high concentration of funds on Treasury Bills resulted in a low market return. Based on the findings, the study offers several recommendations to enhance pension fund administration practices in the agency. It suggests implementing updated software for collection and payment processes and providing motivational incentives, rewards, and recognition for employers. The study also proposes the development of interactive websites for participants to share information and access their account status. These recommendations aim to address the identified challenges and improve the overall efficiency and effectiveness of pension fund administration in the agency.

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