Practice and Challenges of Pension Fund Administration on Public Servant Social Security Agency: In The Case Of South West Religion Jimma Branch Office

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.