Abstract:
This study aimed at generating baseline information concerning to pension fund
administration practice and challenges in Jimma Branch Office. The study employed
descriptive research design and a mixed approach. Primary data were collected from key
informants and secondary data was also collected from books on pension funds, news
reports, and journals and other publications, whenever deemed as relevant to the study.
For this study, census sampling technique was used. The total sample was eighty-eight,
besides purposive sampling technique was employed for key informants, stockholders and
focal person to collect data. Semi- structured questionnaire was administered to all
employees of the organization and pensioners. The quantitative data collected through
primary source were analyzed using median, standard deviation and percentages via
descriptive analysis using SPSS version 20.0 software. The major finding indicates the
organization provides short and long term capacity building training and awareness
programs for employees concerning to practices of pension fund administration policies,
guideline, and manual of directives, existing pension fund regulation needs partial
amendments, the organization has been creating strong linkage and working cooperatively
with employer and different stakeholders for collection of pension fund contributions
revenues payment, the current regulatory system is restrictive, in that it prohibits pension
funds to invest in different investment portfolios other than Treasury Bills. Finally, the
branch office should install and implements updated software’s and provide continuous
skills development programs, in addition that, it should provide different motivational
incentives, rewards and recognition for employers, stakeholders and professional
experienced manpower.
