Impact Of Social Security Investments In Improving Retirement Benefits: A Case Study Of Local Authorities Pensions Fund (Lapf) Head Offices In Dodoma

ABSTRACT

This study assessed the impact of social security investments in improving retirement

benefits, a case study of Local Authorities Pensions Fund (LAPF) Head Offices in

Dodoma. Four research objectives guided the study. First, to find out the types of

investments held by LAPF, in the second place was to find out the proportion of members

contribution towards payment of their retirement benefits; thirdly, to find out the

proportion of investment income towards improvement of the retirement benefits and

fourthly, to examine the impacts of retirement benefits towards retirees of LAPF. The

study applied qualitative and less quantitative approaches and cross survey research

designs was employed. The sample size was 32 respondents. The study used primary and

secondary data. Data were collected through questionnaires, interviews and documentary

reviews. Data were analyzed using Statistical Package for Social Sciences (SPSS) version

16.0 and the use of descriptions was also employed to describe different phenomena.

The findings identified several types of investment made by the organization. These

comprise buildings, bank deposits, customer retaining through customer care and

promotion of services for new customers to sustain the provided benefits. This study found

out that the proportion of members‟ contribution towards payments of their retirement

benefits was significant. Furthermore, it was found out that the proportion of investment

income towards improvement of the retirement benefits is much significant since

investments generate more and more funds for benefits payments and financing various

administrative activities of the organization.

It has been recommended that LAPF should improve its services to its customers, reduce

the time for benefits processing so as to be able to pay benefits on time and also

investment activities should be improved by investing in a well diversified portfolio.