The Effect of Merging Pension Funds on Provision of Retirement Benefits in Tanzania: A Survey of Retirees in Dar es Salaam Region (original) (raw)

Prior to merging pension schemes in the year 2018, there were a total of five recognized pension schemes in Tanzania. This paper investigated the impact of merging pension funds on the provision of retirement benefits in Tanzania. Specifically this paper intends to examine the impact of merging membership contributions on the provision of retirement benefits in Tanzania. A survey research design was deployed. Total of 100 retirees of Public Service Social Security Fund (PSSSF) retired from 2018 onwards in Dar es Salaam Region were involved. Non-probability sampling technique was deployed and the required sample was selected using purposive and convenience sampling methods. The obtained data was analysed quantitatively using descriptive statistics and Pearson's correlation analysis. Overall results of this study showed that merging membership contributions, has positive and significant impact on the provision of retirement benefits (r= 0.311 respectively at 0.05 significant level). The study concludes that, the decision to merge four public pension fund; Local Authority Pension Fund (LAPF), Parastatal Pension Fund (PPF), Government Employees Provident Fund (GEPF) and Public Service Pension Fund (PSPF) to form Public Service Social Security Fund (PSSSF) has significant impact on the provision of retirement benefits to retirees in Tanzania. In order to ensure that merging the pension funds improves provision of the retirement benefits, the Government through PSSSF management should take measures such as increase sense of care of the pension contributions to employees of the PSSSF and by strengthening internal control systems.