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
Abstract
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.