ASSESSMENT ON THE CHALLENGES FACING RETIREES IN CLAIMING THEIR

PENSION BENEFITS.
A CASE OF PSSSF, DAR ES SALAAM.

YEAR III, SEMESTER II

SEMESTER PROJECT

HASAN, SHARIFA J

A Semester Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the B.Sc.
Degree in Accounting and Finance of Ardhi University.

DEPARTMENT OF BUSINESS STUDIES

SCHOOL OF EARTH SCIENCES, REAL ESTATE, BUSINESS
AND INFORMATICS ARDHI UNIVERSITY
DAR ES SALAAM
JULY, 2022
ASSESSMENT ON THE CHALLENGES FACING RETIREES IN CLAIMING THEIR
PENSION BENEFITS.
A CASE OF PSSSF, DAR ES SALAAM.

YEAR III, SEMESTER II

SEMESTER PROJECT

HASAN, SHARIFA J
A Semester Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the B.Sc.
Degree in Accounting and Finance of Ardhi University.

DEPARTMENT OF BUSINESS STUDIES

SCHOOL OF EARTH SCIENCES, REAL ESTATE, BUSINESS
AND INFORMATICS ARDHI UNIVERSITY
DAR ES SALAAM JULY, 2022

ii
 DEDICATION

This study is wholeheartedly dedicated to my beloved Mother, who has been my source of inspiration and
gave me strength when I thought of giving up, who continually provides her moral, spiritual, emotional,
and financial support.
To my brothers, sisters, relatives, mentor, friends and classmates who shared their words of advice and
encouragement to finish this study.
And lastly, I dedicated this work to the Almighty God, thank you for the guidance, strength, power of
mind, protection and skills and for giving us a healthy life. All of these we offer you.

i
 DECLARATION

I, HASAN, SHARIFA J hereby declare that the content of this report are the results of any own study and
findings and, to the best of my knowledge, they have not been presented anywhere for a Diploma, Degree
or any professional award in any Institution of Higher Learning.

.
…………………………..........
HASAN, SHARIFA
Department of Business Studies
School of Earth Sciences, Real Estate, Business Studies and Informatics
Ardhi University
Dar es Salaam

SUPERVISOR’S DECLARATION
This report has been presented as a Dissertation in partial fulfilment of the requirements for the award of
the B.Sc. Degree in Accounting and Finance of Ardhi University.

………………………… ...…………………………………
DR. GIBSON MUNISI SAMWEL SANGA ALANANGA
PROJECT SUPERVISOR HEAD OF DEPARTMENT BUSINESS STUDIES
SCHOOL OF EARTH SCIENCE REAL ESTATE
BUSSINESS AND INFORMATICS
ARDHI UNIVERSITY

ii
 DAR ES SALAAM

ACKNOWLEDGMENT

Conducting a thesis or a project is actually a process that involves the efforts of different people with
knowledge, attitude and readiness to contribute to its realization. There, fore it is not one person’s work
though it might be a responsibility of one person to carry it out. For this reason, I would like to express my
sincere appreciations to everyone whom in one way or another contributed to the completion of this
project. It could take a long list to mention all by names, but some of them according to their importance
and weight, will be named to represent others

First and foremost, I would like to thank our Almighty God, the creator, for granting me physical and
mental health that enabled me to conduct this study successfully. Secondly, I want to express my sincere
appreciation to my supervisor, for his diligent professional guidance and technical advice that shaped my
study and made it what it is.

Third, my special thanks go to the research participants who contributed immensely through this journey,
the retired civil servants claiming and receiving their pensions from PSSSF.

Lastly, I wish to express my sincere thanks to my mother for their endless support in everything.

My heartfelt gratitude to my colleagues.

“It is my prayer that the Lord our Savior blesses them all accordingly”

iii
 ABSTRACT

This study examined the barriers that pensioners in Tanzania encounter while seeking formal security
benefits: It was held in the city of Dar es Salaam. When it comes to pension payments, retirees in
Tanzania confront numerous difficulties. The mass of retired public employees rely on their gratitude and
monthly pension as their primary source of income after retirement. Social security is a system of social
insurance and social assistance that protects employees and the general public from numerous hazards
such as social life stress, sicknesses, economic difficulty, and so on.

The study looked primarily at the methods utilized in processing Pension Benefits in PSSSF and the major
problems that retirees confront while collecting pension benefits from social security funds. It also
analyzed the impact of the social security fund's issues on pensioners and their families.

This is a case study design that employed a mixed method, meaning qualitative and quantitative research.
The instruments for data collection included interviews, questionnaires, and documentary reviews.
According to the data, not all retired employees follow the required procedures for accessing their pension
payments. Procedures for accessing pension benefits should begin six months before an employee retires.
In terms of retirement benefits, a lump sum is paid once after retirement, and the remainder of the pension
is paid over time.

The research also found that the majority of the complaints were payment delays, inadequacy of benefits,
a lack of up-to-date information on the schemes and the quantity of individual contributions made,
estimated benefits statements, and inadequate contribution records. Furthermore, research revealed that
many pensioners are virtually forced to live highly precarious lives and are unable to meet their basic
demands due to pension delays and dwindling household incomes.

Based on the findings, it is recommended that the Social Security Fund should manage the relationship
between members' contributions to the PSSSF before retirement and the benefit they get after retirement.

iv
 LIST OF ABBREVIATIONS

GEPF Government Employee Pension Fund

ILO International Law Organizing
LAPF Local Authority Pension Fund
NSSF National Social Security Fund
PPF Public Provident Fund
PSPF Public Service Pension Fund
PSSSF Public Service Social Security Fund
SSF Social Security Fund
URT United Republic of Tanzania

v
 TABLE OF CONTENTS

DEDICATION................................................................................................................................................i
DECLARATION...........................................................................................................................................ii
ACKNOWLEDGMENT..............................................................................................................................iii
ABSTRACT..................................................................................................................................................iv
LIST OF ABBREVIATIONS........................................................................................................................v
LIST OF TABLES........................................................................................................................................ix
LIST OF FIGURES.......................................................................................................................................x
CHAPTER ONE............................................................................................................................................1
INTRODUTION............................................................................................................................................1
1.1 Background of the study.......................................................................................................................1
1.2 Statement of the problem.....................................................................................................................1
1.3 Research objectives..............................................................................................................................2
1.3.1 Main objective...............................................................................................................................2
1.3.2 Specific Objectives........................................................................................................................2
1.3.2 Research questions.........................................................................................................................2
1.4 Significance of research.......................................................................................................................2
1.5 Scope of research..................................................................................................................................2
CHAPTER TWO...........................................................................................................................................4
LITERATURE REVIEW..............................................................................................................................4
2.1 Introduction..........................................................................................................................................4
2.2 Definition of key terms.........................................................................................................................4
2.2.1 Social Security...............................................................................................................................4
2.2.2 Retiree............................................................................................................................................4
2.2.3 Social Security benefit...................................................................................................................4
2.3 Theoretical Review...............................................................................................................................5
2.3.1 Positive Theory of Social Security................................................................................................5
2.3.2 The Permanent Income Hypothesis...............................................................................................6
2.3.3 The Lifecycle Hypothesis Theory.................................................................................................7
2.4 Background to Social Security Programs.............................................................................................8
2.5 Social Security System in Tanzania.....................................................................................................8

vi
 2.6 Challenges Facing Social Security in Tanzania...................................................................................9
2.7 Empirical Review...............................................................................................................................10
2.8 Conceptual framework.......................................................................................................................12
CHAPTER THREE.....................................................................................................................................14
3.1 Introduction........................................................................................................................................14
3.2 Location of the study..........................................................................................................................14
3.3 Target population...............................................................................................................................14
3.4 Sample size and Sampling Technique................................................................................................14
3.5 Data Collection Methods....................................................................................................................15
3.5.1 Primary data.................................................................................................................................15
3.5.2 Secondary Data............................................................................................................................15
3.6 Data Analysis and Presentation..........................................................................................................15
3.6.1 Descriptive analysis.....................................................................................................................15
3.6.2 Thematic an analysis....................................................................................................................15
3.7 Ethical Issues Consideration..............................................................................................................16
CHAPTER FOUR........................................................................................................................................17
DATA PRESENTATION, ANALYSIS AND DISCUSSION....................................................................17
4.1 Introduction........................................................................................................................................17
4.2 Demographic Characteristics of Respondents....................................................................................17
4.2.1 Distribution of respondents by age period after retirement.........................................................17
4.2.2 Respondents by Gender...............................................................................................................18
4.3 Current Procedures in Processing Pension Benefits in PSSSF..........................................................19
4.3.1 Common Procedures for Pension Processing..............................................................................19
4.3.2 Pension scheme............................................................................................................................20
4.4 Prominent challenges facing retirees in claiming their pension.........................................................21
4.4.1 Delay in payments.......................................................................................................................21
4.4.2 Insufficient benefits.....................................................................................................................22
4.4.3 Excessive unsuccessful follow ups..............................................................................................23
4.4.4 Delay in processing informations by the PSSSF staffs...............................................................24
4.4.5 Incomplete contributions from employers...................................................................................24
4.4.6 Lack of knowledge about the scheme..........................................................................................25
4.4.7 Long and complex forms.............................................................................................................25
vii
 4.5 Impact of the Public Social Security Fund Challenges to the Retirees..............................................26
4.5.1 Life stress.....................................................................................................................................26
4.5.2 Unemployment............................................................................................................................26
4.5.3 Children drop out of school.........................................................................................................27
4.5.4 Debt accumulation.......................................................................................................................27
4.5.5 Poor living standard and high costs of living..............................................................................27
4.6 Model summary..................................................................................................................................28
CHAPTER FIVE.........................................................................................................................................31
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS................................................................31
5.1 Introduction........................................................................................................................................31
5.2 Summary of Findings.........................................................................................................................31
5.2.1 Procedures Followed in Processing Pension Benefits.................................................................31
5.2.2 Impact of the Social Security Fund Challenges to the Retirees and their families......................31
5.3 Conclusion..........................................................................................................................................32
5.4 Recommendation................................................................................................................................32
5.4.1 To PSSSF.....................................................................................................................................32
5.4.2 To Employers..............................................................................................................................32
5.5 Areas for Further Studies...................................................................................................................33
REFERENCES............................................................................................................................................34
APPENDIXES.............................................................................................................................................37

viii
 LIST OF TABLES

Table 4.1: Distribution of Respondents by age period after retirement.......................................................18

Table 4.2: The distribution respondents by Gender with percentage..........................................................18
Table 4.3: Distribution of respondents by number of years of contribution to the scheme.........................19
Table 4.4: Table of common procedures followed in accessing pension benefits.......................................19
Table 4.5: Unemployment............................................................................................................................27
Table 4.6: Model Summary.........................................................................................................................28
Table 4.7: Coefficients.................................................................................................................................29

ix
 LIST OF FIGURES

Figure 2.1: Conceptual Framework.............................................................................................................13

Figure 4.1: delay in payments
Figure 4.2: Insufficient benefits
Figure 4.3: Excessive unsuccessful follow ups frequency
Figure 4.4: Delay in processing information
Figure 4.5: Incomplete contributions from employers
Figure 4.6: Life stress

x
 CHAPTER ONE
INTRODUTION

1.1 Background of the study

Two social security funds, PSSSF and NSSF, support retired employees in Tanzania. PSSSF serves public
employees, while NSSF serves private employees. These two funds share the same purpose of providing
retired employees with pension benefits as soon as they retire. Employees' monthly contributions during
their working term are used to fund pension benefits.

The government borrows this money for various purposes such as construction projects, and because the
government sometimes fails to repay this money, the Social Security Funds are obligated to delay
payment of pensions to their clients on time (S. K. , 2016). A noteworthy example is the government's use
of monies for the payment of East African Community pensioners.

Despite the Tanzanian government's numerous efforts (system in place), retirees have faced and continue
to experience numerous obstacles, including delays in collecting their terminal benefits. This situation
necessitates immediate action. The majority of former civil servants rely on pensions as their primary
source of income after retirement. As a result, retired workers need timely payment of their pensions,
therefore avoidable delays must be eliminated. The inability of retired civil officials to access terminal
benefits is hampered by payment delays. This has been a long-standing issue for many retirees,
particularly those from government employment. It has long been a standard practice for retirees.

The public service social security fund (PSSSF) is a social security plan established by the public service
social security Act to collect contributions and pay terminal benefits to public service employees. The
Public Service Social Security Fund Act no. 2 of 2018 was established in order to repeal the Public
Service Retirement Benefit Act, the LAPF Pensions Fund Act, the GEPF Retirement Benefit Fund Act,
and the PPF Pensions Fund Act, as well as to provide for other connected concerns. The PSSSF is
an outcome of the merger of the GEPF, LAPF, PPF, and PSPF, which were previously operating
independently and competing with each other in terms of new member registration, collection of member
contributions, investment of collected contributions, and finally to the PSSSF.

Given the aforementioned problems, it should be emphasized that the delay in processing retirees' terminal
benefit payments in Tanzania poses a barrier and hence merits more inquiry. The few studies available
revealed the issues that members of social security schemes face, such as a lack of pertinent records
1
regarding employees' monthly contributions, a lack of benefits, and a delay in payment. This has prompted
the current study on the difficulties experienced by civil service retirees in getting statutory social security
payments in Dar es Salaam.

1.2 Statement of the problem

Less than five percent of labor force in Tanzania is covered by social security scheme especially on old
age pensions. Despite the fact that social security funds provide lifetime benefits to the retired employees,
still the experience shows that in Tanzania the beneficiaries suffer similar pains including challenges they
face in the time of claiming their pension benefits.

Tanzania's social security system is made up of two funds: the Public Service Social Security Fund
(PSSSF), which serves government employees, and the National Social Security Fund (NSSF) (NSSF).
These Social Security Funds collect employees' monthly deductions from workers around the country;
nevertheless, the government borrows this money for a variety of purposes, including construction
projects. Because the government often takes too long to return this money, the Social Security Funds are
obligated to delay payment of pensions to their clients (Kubenea, 2016). A very clear example is the
government's use of funds given to East African Community retirees for purposes other than pension
payment. As a result, retirees were delayed in receiving their dues, causing hardships in their everyday
lives (Lyimo, 2011).

Although various studies have been undertaken by various academics, they have primarily focused on the
assessment and economic impact of social security funds on pensioners and terminal benefits payment
methods in Tanzania (Semango, 2015 and Haule, 2013). There appear to be few studies that focus on the
difficulties of Social Security Funds and pensioners. As a result, the current study investigated the
difficulties experienced by civil service retirees in obtaining formal social security payments in Dar es
Salaam, Tanzania

1.3 Research objectives.

1.3.1 Main objective
To assess the challenges, impacts and life experience on retired civil servants in claiming their pension
benefit from PSSSF after merging of the former social security funds in Dar es Salaam,

2
1.3.2 Specific Objectives
I. To examine current procedures of processing pension benefit from PSSSF
ii. To identify prominent challenges facing retirees when claiming their pension from PSSSF
iii. To determine the impacts of the challenges of accessing pension benefits to retirees and their
families

1.3.2 Research questions

I. What are the current procedures of processing pension benefit from PSSSF?
ii. What are the prominent challenges faced by retirees in accessing pension benefits in PSSSF?
iii What are the impacts of the identified challenges to the individual retirees and their
families?
1.4 Significance of research
The quality of this topic being worthy of attention is to acquire and understand the challenges, experiences
and impacts from retirees in claiming their pension benefit in Tanzania as to the social security fund and
get to solutions in order to reduce the barriers to enjoying life by pensioners and ensure quality and
appropriate services from the Public Service Social Security Fund.

1.5 Scope of research

The extent of area or subject matter considers how validity limits presentation of findings. According to
(Byrne, 2011), validity “refers to the issue of whether an indicator (or set of indicators) that is devised to
gauge concepts really measures that concept”, whereby in this study, the concept that is to be researched
involves the impacts, life experience and challenges on retired civil servants in claiming their pension
benefit from Public Service Social Security Fund (PSSSF) in Tanzania. Validity is concerned with the
integrity of the conclusions that are generated from a piece of research. In this study, findings based on
subjective impacts on retirees claiming or have claimed their old age pension from PSSSF and the social
security fund operations.

3
 CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter includes a review of the literature on the problems, impacts, and experiences of retirees in
claiming their old age benefits, as well as the former social security fund and PSSSF operations. The
review is organized around the study's objectives, which are primarily concerned with identifying existing
pension schemes or benefits in Tanzania. The assessment focuses on the issues and impacts that existed in
Tanzania's pension system, the current situation of old-age pension in the country, and how PSSSF, as a
pension scheme, organizes and coordinates pension payouts, as well as the ex-funds' former operations.
The chapter begins by introducing the essential concepts employed in this study and concludes with the
theoretical framework that governs the research.

2.2 Definition of key terms

2.2.1 Social Security
Refers to the protection people in need are given by the society. This is done as a community measure
addressing social and economic distress that would otherwise cause reduction or stoppage of income to
the retirees. This loss of income can be permanent or temporary (Tungaraza F. S.K., Social Security
Systems in Tanzania, 2002). his study follows the aforementioned criteria by investigating the extent to
which retired employees are covered by the security systems.

2.2.2 Retiree
Is similar to the pensioner. It refers to a worker who has stopped working or reached the end of his
professional career (Merriam, 2012). Retirement marks the beginning of a new stage in life. Work is a job
that one is employed to undertake before retiring. This might be a permanent and pensionable position. As
a result, in this study, the words pensioner and retiree are used interchangeably. 

2.2.3 Social Security benefit

it is a variety of offers designed to assist clients/employees in saving for retirement, income, and social suffering
such as sickness, workplace injuries, occupational diseases, maternity, old age, invalidity, death, and
unemployment (Tungaraza F. S.K., Social Security Systems in Tanzania, 2002). It bases retirement benefits on how
much a retiree earned throughout his or her work. The more the payment an employee receives before retiring,

4
the bigger the social security benefit. Social Security benefits are distributed once a month as a gratuity to retired
employees who made monthly contributions to social security programs throughout their working years. This
study investigates seniors' thankfulness and monthly pension payments. This study follows the above definition by
investigating.

2.3 Theoretical Review

2.3.1 Positive Theory of Social Security

Most countries consider social security to have positive impact as it helps to redistributes income.
(Tabellini, 2000) developed the positive theory of social security on the process of finding an answer to
the question on why do majority of voters support a social security system that redistribute income
towards a minority of the population (social security beneficiaries and poorest taxpayers). In this theory,
the importance of social security to the country is recognized as it contributes in reducing income
inequality because it redistributes the income across and within the generations. Thus, both retirees who
are the beneficiaries of the schemes and the poorest taxpayers in the community support social security.
(Martin, 1996) also supported the positive theory of social security as he claimed that social security
schemes across the world link retirement benefits to retirement.

He further explained that pensions are perceived as a way to encourage retirement when one hits the
retirement age because aggregate output is higher if old age exits from services. According to him,
working capability depreciates with age because the working skills decrease and in turn it affects by
reducing the efficiency of the energetic ones. At that point, the old have to retire and the social security
transfers encourage it.

The positive theory of social security is relevant for this study because when young people work, they
devote their energy for efficiency and as a result generates higher aggregate output of an economy
(Martin, 1996). According to the Public Service Retirement Benefits Act No.2 of 1999, a compulsory
retirement age of a public servant is 60; however, recently the government has decided to increase the
voluntary retirement age to 60 and 65 compulsories. In that case, the public servants keep their
membership with pension schemes through contributions during their working period to be covered
together with their beneficiaries when they retire. The findings from this study revealed that, the retired
civil servants acknowledge the role played by social security pension in their retirement life. The retirees
have contributed to the social security schemes throughout in-service period and by the retirement time;

5
they depend on pension as their main source of income because their strength and capability to work have
gone down. Pension facilitates them to at least carter for their basic life demands such as food, health,
housing and dependent’s education.

2.3.2 The Permanent Income Hypothesis Theory

Friedman, 1957 proposed the permanent income hypothesis to explain pre- and post-retirement living
standards by straightening out the consumption stream. According to the hypothesis, individuals consume
a portion of their permanent income in each period, and the average inclination to consume equals the
marginal propensity to consume. This anticipates a consumption smoothing in which a person's
consumption is dictated by his or her lifetime income, i.e. the projected long-term average income, rather
than present income.

The theory suggests employees save money to ensure that they have resources for consumption smoothing
after retirement. Retirees would depend on personal resources to cover themselves if were not protected
by social security schemes of which it would be difficult to them as the ability and energy to work will
have gone down. Moreover, if the retirees were not well prepared especially on investments through their
savings to provide them with income by the time of retirement, then their consumption level will also be
affected. This household behavior is described as the lifecycle model of savings (Mitchell, 2001)

This theory is relevant in this study as it is advised to save when still working and energetic before
retirement and engages in business and investment to secure the future from uncertainties and challenges
like delay of payments and insufficient benefits. Meaning, people should invest on income generation, that
is assets/properties including real estates, farming and other business opportunities while on service. This
study revealed that investments assist public servants at retirement to complement their pension benefits
rather than depending only on their pension funds and be distressed when their payments delays.

2.3.3 The Lifecycle Hypothesis Theory

The lifecycle hypothesis theory is concerned with economic decisions concerning retirement savings,
specifically the optimization of an individual's income in order to increase its usefulness during his
lifetime (Deaton, 2005). According to the hypothesis, households accrue money during their working
years and de-accumulate wealth after retirement. This form of saving behavior affects pensioners and the
economy since it allows individuals to smooth their relative value of spending over the lifetime while also
contributing to economic growth.

6
Individual and aggregate saving have a relationship. Employees save, while pensioners or retirees disserve
(spend more than they make); the ratio between saving and disserving determines overall saving in an
economy. In a booming economy, each successive generation of employees is often larger, wealthier, and
saves more money than previous generations. Saving among current employees  outnumbers disserving by
retirees, who are both smaller in number and have lower earnings. As a result, overall saving is positive in
a developing economy (Deaton, 2005).

The life cycle theory is quite relevant in the current study because contributions to social security fund by
employees are a form of saving. It supports consumption at retirement and contributes to economic growth
through SSPF’s investments in different activities such as in real estates (Lachowska, 2015). Moreover,
the study findings also revealed that most of the retirees’ income is reduced as the ability and energy to
work has gone down (Paulin, 2002). Thus, retiring from their jobs makes them depend on pension as their
main source of income to cover for their life demand (Kazimoto, 2014). The retirees also depend on other
sources of income supplement their needs. This aligns with the life cycle theory because during the in-
service period workers accumulate wealth, and their ability to spend is also high as they generate more
income.

Nevertheless, it was observed that at the early retirement time most of the retirees spending is high
because they still have some savings and the terminal benefits but the spending decreases as time goes. It
is also noted from studies that, pre-retirement and retirement expenditures differ due to the difference in
income (Paulin, 2002). Some of the retirees reported constant living standard as the in-service period due
to income that they generate from other sources such as business and family support.

2.4 Empirical Review

In this section, the review of literatures to show what other studies say in relation to this study is
presented. This section will show what other researchers have done so far and the gap that has been
further investigated/analyzed in this study.

ACFS and AIST (2016); (Paulin, 2002) did their studies to evaluate the retirees’ expenditure pattern
through consumption. They aimed to compare their expenditures when in services versus retirement
period in order to find out whether person’s spending decreases when they retire as anticipate due to
decrease in income. The retirees reported constant expenditures at early retirement with a slight decrease

7
in some spending such as food and increase in others. Moreover, it is expected retirees spending to be
higher than their income because of receipt of income from other sources such as family and business.

Filho (2012) examined local social security and discovered that providing retirement benefits reduced
labor-force involvement while improving school attendance among children aged 10 to 14 years. This is
because money from retirement and pensions will allow retirees to finance their children' education and
other life expenses. Children would not have to work to look for their parents in this way.

Retirement benefits income, according to Reis et al. (2014), contributes to growing income distribution
disparity in Brazil. According to the survey findings, social security income was the second greatest
source of income in the Gini coefficient computation, trailing only primary employment income.
According to (Holzmann R, 2005), the ILO and, more recently, the World Bank have long advocated for
the influence of social security or pension programs to alleviating poverty in developing nations. Social
pensions have been attributed with good improvements in countries where they have been implemented.
According to Leka Bane and Seleka (2016), social pensions have helped to improve women's health,
reduce rural poverty, elevate the status of older people in the family, and increase school attendance.

According to Bailey (2004), income security is one of the key goals of social insurance in terms of not
only keeping people safe in their old age but also shielding employees from unemployment crises. While
non-contributory social insurance and other types of social support are growing more essential,
contributory social insurance systems are also extending to include individuals working in the informal
sector.

According to (Ndiaye P, 2007), one of the major roles of social security is to provide people with health
care assurance. During the 1960s, most African countries had free health-care policies, but financial
reforms in the 1980s essentially abandoned this kind of social protection. While formal insurance systems
protected a small percentage of the population, health-care access in the informal sector declined. The
implementation of user fees had contradictory effects, raising resources in some places while imposing
severe access hurdles for many low-income households. African countries began implementing
Community Health Insurance (CHI) models in the late 1980s, inspired by European social health
insurance systems, and these approaches have proven increasingly successful. Its applicability is that
individuals or households join a not-for-profit structure voluntarily to share the financial risk of individual

8
health-care expenditure where they agree on the services to be covered and the contribution charged
(Ndiaye P, 2007)

Social security is a technique for administering and controlling employment. It is used in businesses to
attain and maintain specific levels of work productivity. According to (Armstrong, 2010), social security
allows retirees to adapt and fill their social demands through the retirement funds offered. It boosts
workers' self-confidence because they know they are protected against future economic and financial
dangers, which boosts productivity. As a result, it contributes to the overall growth of the organization.

Aside from that, retirement benefits are a strategy used by firms to outline their corporate social
responsibility (CSR) and so generate goodwill. Furthermore, social security is becoming an increasingly
important part of every nation's economy because the cash set aside for retirement benefits could be used
to launch small businesses. It can also ease pressure on the organization for individual support by creating
positive work relationships about taking on demanding responsibilities in the future (Armstrong, 2010).

Charles (2019) wrote on the situation of retired civil servants claiming their old age pension in Tanzania,
and he claims that both unemployment risks and longevity risks are important factors in deciding whether
to buy insurance or work for a company that provides pension protection. Human beings are sensitive to
dangers and uncertainties in terms of income as a means of survival. To mitigate these dangers, everyone
requires some level of social security provided by family, community, and society as a whole. Given that
no individual can ensure his or her own security, social security schemes allow for societal solidarity and
risk pooling.

(Janeth, 2019) wrote on post-retirement challenges affecting the welfare of social security fund members
in Dar es Salaam, and she recommended that awareness on social security pension funds and financial
planning to be provided to members of social security schemes, as well as creating awareness and attitude
toward investment and retirement while on service for better retirement plans. Furthermore, social security
programs should strengthen pension fund payment processes to enable timely supply of services to
increase the welfare of retiree households.

(Mayemba, 2015), on the other hand, wrote on the prospects and obstacles in the provision of retirement
education to employees, and he studied the features of retirement in education, education policy, and it
also explored community members' perspectives toward the value of retirement education. It also explored
the opinions of community people toward the relevance of retirement education, as well as the

9
perspectives of education officials on the potential problems of providing education to workers in
Tanzania.

Other studies focused on the coverage of the social security funds, their services, roles, efficiency and
investments made by the funds for income generation including encountered challenges. But there is no
study that has focused specifically on understanding how procedures and challenges of claiming pension
benefits can cause impact in retiree’s life and their families. It is in this regard this study was conducted to
fill this gap.

2.8 Conceptual framework

This study is led by the Conceptual Model, which reflects the challenges that retirees encounter. This
conceptual modal demonstrates that if retirees, employers, Social Security Funds, and the government
follow the procedures for lodging retirement benefits correctly, there will be fewer challenges and hence
beneficial outcomes. On the contrary, if the procedures are not followed correctly, it will result in
numerous obstacles, which will finally have a bad impact on the retiring staff.

10
 If
Less Positive
procedures
challenges impacts
are followed

PROCEDURES CHALLENGES IMPACTS

-Delay
payments
If -Life
procedures Negative
Many Hardship
are Not impacts
challenges -Stress
-Early
followed -Deaths
payments
(P1F1)
Figure 2.1: Conceptual Framework -No

Source: Developed by Resercher 2022 psychological

effects
-No deaths

11
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction

The methodological approaches utilized in data gathering and analysis are discussed in this chapter. It
discusses the study's location, target population, sample, and sampling methodology. The study also took
into account ethical concerns

3.2 Location of the study

This study was conducted in Dar es Salaam region. The reason for conducting the study in Dar salaam
is owing to the conveniences as regarding to time, resources and access as noted by (Meda, 2011) to be
important factors when undertaking a study. This area of study was also preferred because it was
anticipated to have high population of retirees where information required for the study could be easily
collected.

3.3 Target population

Target population refers to the large group to which the researcher wishes to generalize the results of the
study (Meda, 2011). For this study the target population was the retirees who are the members of the
PSSSF scheme.

3.4 Sample size and Sampling Technique

The practice of picking a number of individuals or things from a population so that the selected group
contains aspects that are typical of the traits prevalent in the complete group is known as sampling.
Population, as is generally known, is a comprehensive set of units to be investigated. A sample of 32
respondents was obtained from the population of retirees and 1 PSSSF staff member using the purposive
sampling technique for this study.

Respondents Male Female Total

Retirees 22 10 32
PSSSF staff - 1 1
TOTAL 22 11 33
Source: Researcher’s data compilation, 2022

12
3.5 Data Collection Methods
3.5.1 Primary data

Primary data are firsthand observations and information gathered through numerous methods such as
interviews, questionnaires, observations, and documentary review. They are gathered directly from the
original sources by the researcher (Cohen, 2000). Primary data for this study were gathered through
questionnaires and interviews.

3.5.2 Secondary Data

Secondary data sources are information that has been acquired and processed for other purposes. Books,
encyclopedias, newspapers, periodicals, and gathered statistics statements and reports are examples of
such sources. Secondary data and information are those provided by someone who did not directly
observe the event, object, or circumstance (Nsubuga, 2010). In this study, secondary data was gathered
through a documentary review. The general act of social security funds and the public service social
security funds act are among the documents examined in this study.

3.6 Data Analysis and Presentation

Data analysis, according to (Kothari, 2004), is a process that includes editing, coding, classification, and
tabulation of acquired data. It is a procedure that involves examining information and drawing
conclusions. Data was examined and presented using descriptive analysis based on a quantitative
methodology.

3.6.1 Descriptive analysis

It is a sort of quantitative data analysis that helps to define, illustrate, and summarize data points in a
constructive way so that structures can develop and match all of the data's conditions. It is a numerical
process for organizing and describing the features of a given sample.

3.7 Ethical Issues Consideration.

As previously stated, ethical concerns are critical in any research involving humans. Similarly, in this
study, ethical protocols for conducting research were maintained during the preparation and field study
phases, as stated in the subsequent sections.

13
3.8 Confidentiality
During data collecting in the field, the researcher protected the confidentiality of the information provided
by respondents. As a result, even before providing information, respondents assured that the information
they supplied would be kept personal and private, and that it would only be used for research purposes.

14
 CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1 Introduction

The primary findings of the study are presented and analyzed in this chapter. The analysis, discussion, and
interpretation of obtained data are critical because they serve to answer research questions and validate
their validity. According to (Meda, 2011), once the questionnaires or other measuring equipment have
been administered, the quantity of raw data collected must be methodically examined, debated, and
interpreted in a way that brings the researcher the useful information needed from the study. The
researcher is able to deliver significant findings as a result of such analysis and discussion.

To accomplish this purpose, this chapter is divided into four sections: demographic characteristics of
respondents, existing technique for processing pension benefits in PSSSF, significant obstacles pensioners
confront in collecting pension benefits, and the impact of social security fund challenges on retirees The
findings are presented in accordance with the objectives and study questions.

4.2 Demographic Characteristics of Respondents

In this study, describing the demographic features of respondents was deemed critical. The age of
retirement, gender, and number of years of contributions to the system were all highlighted. It was
assumed that these variables will aid in the conceptualization of the problem and problems experienced by
pensioners in Tanzania in getting social security payments.

4.2.1 Distribution of respondents by age period after retirement

According to PSSSF act, employees are allowed to retire from the age of 55 years to 60 years, whereas at
the age of 55 one is allowed to retire voluntarily and at the age of 60 years it is compulsory. Findings
revealed that (18.75%) of the respondents were at the age between 55 – 59 years, (46.88%) of the
respondents were at the age between 60 – 65 years and (34.38%) of the respondents were at the age of 66
and above. This implies that, majority of retirees in Tanzania are at the age between 60 – 65 years.

15
 Table 4.1: Distribution of Respondents by age period after retirement

Age Frequency Percent

55 - 59 6 18.75%
60 - 65 15 46.88%
66 and above 11 34.38%
Total 32 100%
Source: Researcher’s data compilation, 2022

4.2.2 Respondents by Gender

A sub question on gender was asked because according to (Bukwimba, 2016), female seem to live longer
than males as the number of deaths in male is higher than in female. It was also noted that the employment
rate for women is 12.6% (URT, 2018). Therefore, it was important to check the number of women who
retired after being employed for years. However, data from observation showed that in the area under
study there were more male retirees than the female ones.

The findings show that 22 (68.75%) of the respondents were male and 10 (31.25%) of the respondents
were female.

Table 4.2: The distribution of respondents by Gender with percentage

Frequenc Percent
y
male 22 68.75%

female 10 31.25%
Total 32 100%

Source; Researcher’s data compilation, 2022

4.2.3 Distribution of respondents by number of years of contribution to the scheme

A retiree become eligible to the pension benefits after contributing to at least 180 months (URT 2010).
However, there are factors like illness or abolition from the office which could justify an employee to be
eligible to pension benefit below 180 months of contribution. From the findings, 31 (96.875%) of the
respondents contributed from 180 months and above and 1 (3.125%) contributed below 180 months.

16
Table 4.3: Distribution of respondents by number of years of contribution to the scheme

Frequency Percent
Below 180 months 1 3.125%
180 months and above 31 96.875%
Total 32 100%
Source: Researcher’s data compilation, 2022

4.3 Current Procedures in Processing Pension Benefits in PSSSF

A question on procedures followed in processing Pension Benefits was asked. It was addressing the first
specific objective of this study.

4.3.1 Common Procedures for Pension Processing

From the questionnaire, respondents were asked to choose among the listed procedures in which they
followed during accessing their pension benefits from PSSSF. From the findings, 21(65.625%) of the
respondents admitted that they did follow all the common procedures for accessing their pension benefits
from PSSSF (YES) while 11(34.375%) did not follow all the procedures (NO). These are the ones who
mostly ended up delaying getting their retirement benefits.

Table 4.4: Table of common procedures followed in accessing pension benefits

35

30

25

20

15

10

0
YES NO Total

Frequency Percent
Source: Researcher’s data compilation, 2022

17
From the questionnaires, the following procedures of accessing pension benefits were listed for the
respondents to indicate which one they followed during accessing their pension benefits.
 Six months before retiring, an employee should fill in his/her information in a particular form from
PSSSF (application for retirement benefit)
 The filled form should be accompanied with the following attachments
-Letter of appointment
- Letter of notification of retirement from employer
- Letter of last promotion
- NIDA/ or voters ID or driving license
-Salary slip of your last salary you received
-Bank statement of the account your salary is being paid to (at least one salary
payment)
-Recently salary slip
-Personal record, i.e., marital status
 One month before retiring, you should submit the form along with the required attachments to the
PSSSF office
 One month before retiring, you should make follow ups to the PSSSF office to confirm the
complete submission of your contribution by the employer
 Pension benefits shall commence on the month following the month the member ceased to receive
salary. (URT, 2018)
From an open-ended question from the questionnaire which required a respondent to add any other
procedures encountered during pension accessing, one respondent added that, the system should be set up
by the scheme in preparation for the pension benefits for retirees without bothering them or demanding
information from the retirees. From his view it is clearly that pension procedures are very long and
complex and to them it appears clearly they are being bothered instead of relaxing after retiring which is
the main goal for retirement.

4.3.2 Pension scheme

According to the conclusions of the PSSSF staff members interviewed, pension systems are split into two
types, the first scheme is a lump sum payment made to employees after they retire. The second component
of the pension is the one that employees receive once a month.

18
 According to the PSSSF Act (2018), the lumpsum should commence the following month when an
employee ceased to receive salary but it has been different in reality since majority of respondents have
indicated that they delay of payment is the major setback in receiving their pension benefits. This
evidence is consistent with social security theories, especially the positive theory of social security, which
essentially associates retirement payments with retirement from employment. Workers understand that
when they are young, they must serve money. This is accomplished through their monthly contributions to
social security funds. They do so because as they age, their skill level declines and they are forced to
retire.

4.4 Prominent challenges facing retirees in claiming their pension

Tanzania's public pension system faces significant issues. Members and other beneficiaries of
governmental pension schemes are overwhelmingly dissatisfied. The majority of complaints concern the
inadequacy of benefits, payment delays, a lack of up-to-date information on the schemes and the number
of individual contributions made, and estimated benefit statements. Prominent challenges are the
challenges which occur mostly and affect majority of the retirees. From the structured questionnaires,
respondents were required to choose among the challenges listed in which they encountered when
accessing their pension benefits from PSSSF.

4.4.1 Delay in payments

From the findings, delay of payments is the most prominent challenges to the majority of retirees. From
the questionnaires, (59.37%) of the respondents were affected at great extent from this challenge while
only (40.63%) of the respondents was affected at small extent and no one (0%) was not affected at all.

19
 35

30

25

20

15

10

0
small extent great extent Total
Valid

Delay in payments Frequency Delay in payments Percent

Figure 4.1: delay in payments

Source: Researcher’s data compilation, 2022

4.4.2 Excessive unsuccessful follow ups

It is clearly that, retirees whom their payment delayed have made a lot of follow ups to the PSSSF office
with no success. From the findings, 16(50%) of the respondents were encountered by this challenge to
great extent while 13(40.6)% were at small extent and 3(9.4%) did not encounter the challenge at all. It is
indicated by the figure below.

20
 120

100

80

60

40

20

0
Not at all small extent great extent Total
Valid

Excessive unsuccessful follow ups Frequency

Excessive unsuccessful follow ups Percent

Figure 4.2: Excessive unsuccessful follow ups frequency

Source: Researcher’s data compilation, 2022

The implication of this is that, majority of retirees make a lot of follow ups to the PSSSF offices but all for
nothing. Some stay far from where the offices are located and hence, they have to incur costs of transport.
One person can experience up to three challenges at a time and even more. Delay of payments,
unsuccessful follow ups and transport cost. All these results into nothing but hardship of life and
psychological effects.

4.4.3 Insufficient benefits

From the findings, 4(9.38%) of the respondents were not affected at all from insufficient of benefits,
14(43.75%) were affected to small extent while 15(48.88%) of the respondents were greatly affected as
indicated below. From the findings, insufficient benefits to retirees became the second prominent
challenge.

21
 120

100

80

60

40

20

0
Not at all small extent great extent Total

Insufficient benefit Frequency Insufficient benefit Percent

Figure 4.3: Insufficient benefits

Source: Researcher’s data compilation, 2022

The inference is that only a few of Tanzanian retirees enjoy life after retirement, while the majority live in
poverty. After devoting their lives to active duty for the majority of their lives, one would expect the
retirees to be handsomely compensated. Their immediate reward would be salary and wages while they
worked, and their long-term reward would be pension and gratuity payments when they retired, but that is
not the case now. Pensioners wander from office to office in their desperate search for a small pension. It
is clear that retirement, which should ordinarily signify joy or contentment, has become synonymous with
misery, frustration, worry, and suffering.

4.4.4 Delay in processing information by the PSSSF staffs

From the findings, 34.37% of the respondents were encountered at great extent, 50% were encountered at
small extent while 15.63% were not encountered at all by this challenge. It is indicated in the figure
below.

22
 35

30

25

20

15

10

0
Not at all small extent great extent Total

Delay in processing information Frequency

Delay in processing information Percent

Figure 4.4: Delay in processing information

Source: Researcher’s data compilation, 2022

The findings indicates that, somehow many retirees are affected by the delaying of information process by
the PSSSF staffs. It is clearly when someone has retired, they do not expect to encounter any difficulties
when claiming their pension benefits. But many have been failing to access their pension benefits
comfortably because it takes a lot of time than expected to process one’s information so he/she can start
receiving pension benefits.

4.4.5 Incomplete contributions from employers

The PSSSF Act of 2018 requires an employer to submit employees’ contributions every month. Usually,
an employee contributes 15% and 5% from an employer hence 20% of contributions each month. from the
findings, 43.75% of respondents did not face the challenge while 14.5% faced it at small extent and
43.75% faced the challenge at great extent.

23
 120
100
80
60
40
20
0
Not at all small extent great extent Total
Valid

Incomplete contributions from employer Frequency

Incomplete contributions from employer Percent

Figure 4.5: Incomplete contributions from employers

Source: Researcher’s data compilation, 2022

From the findings it implies that, some retiree’s challenges are caused by their employers by not
submitting all the contributions to the PSSSF. The scheme cannot process pensions which has gaps of
unsubmitted months. Hence a retiree has to check on with his/her employer to solve the issue. According
to the PSSSF Act, it requires an employee one month before retiring to confirm with the PSSSF if all the
contributions were submitted.

4.4.6 Lack of knowledge about the scheme

From the findings, 21.87% of the respondents faced the challenge at great extent while 31.25% faced it at
small extent and 46.88% were not affected at all. This implies majority of the retirees are aware of how
the scheme operates in processing their pension benefits. This was also seen in the first objective of
procedures. Majority of the respondents followed the common procedures in claiming their pension
benefits.

24
 35

30

25

20

15

10

0
not at all small extent great extent Total

Lack of knowledge about the scheme Frequency

Lack of knowledge about the scheme Percent

Source: Researcher’s data compilation, 2022

4.4.7 Long and complex forms

Some retirees are faced with the problem of long and complex form. From the findings, 43.75% of the
respondents faced the challenge at great extent while another 43.75% of the respondents faced it at small
extent and 125% did not face it at all. The form of application for pension benefits requires a lot of
credentials and attachments of which to some people they find it complex and had to complete.

120

100

80

60

40

20

0
Not at all small extent great extent Total
Invalid

Long and complex forms Frequency Long and complex forms Percent

Source: Researcher’s data compilation, 2022

25
4.5 Impact of the Public Social Security Fund Challenges to the Retirees
4.5.1 Life stress
From the findings, 46.9% of the respondents were affected at great extent by life stress, 37.5% were
affected at small extent and 15.6% were not affected at all as indicated in the figure below.

120

100

80

60

40

20

0
Not at all small extent great extent Total

Frequency Percent

Figure 4.6: Life stress

Source: own research, 2022

The findings imply that, majority of the retirees suffers from life stress due to challenges they face. It is
clearly that the challenges they face affect them at great extent and to many people. This is because, many
retirees pictured their ideal retirement before they retired, whether it is travelling the world or spend more
time with family and friends (M.A, 2021). Hence when the retirement strikes with its challenges, one must
suffer from life stress.

4.5.2 Unemployment
After retiring, majority of retirees become unemployed from their work and others could not manage to
even have a side hustle or getting employed from private entities. Life an unemployed person who was
once employed is hard and it takes time until comfortability considering there are lot of challenges on the
way of retired employee. From the findings, 25% of the respondents were not affected, 43.8% were
affected at small extent and 31.3% were affected greatly by these impacts. It is indicated by the table
below.

26
 Table 4.5: Unemployment
120

100

80

60

40

20

0
Not at all small extent great extent Total

Frequency Percent

Source: own research, 2022

4.5.3 Children drop out of school

The level of income after retiring reduces considering there is no salary. Due to that, 60% of the
respondents were faced with this impact while 40% were not affected at all. The ability of a parent to
provide for his/her children while working is high unlike when retired. After retiring money is
unpredictable due to available challenges like delay in payments and insufficient benefits. Hence it is
difficult for a parent to provide for school needs of the children and at the same time cover the costs of
living.

4.5.4 Debt accumulation

One easiest way of getting fund when in shortage is borrowing. This also happens to retirees due to delay
in payment, insufficient benefits and high costs of living. 25.5% of the retirees admitted that they
borrowed to great extent while 50% borrowed at small extent and 10% did not borrow at all.
Additional findings from the interview revealed that 25.5% of the respondent were at debt problem.

27
 120

100

80

60

40

20

0
Not at all small extent great extent Total

Frequency Percent

4.5.5 Poor living standard and high costs of living

From the findings, 50% of the respondents admitted to have poor living standard at great extent while
30% of the respondents were at small extent and 20% were not affected at all. High costs of living can be
due to rise in inflation rate where by the contributions made my employees during working become
affected by today’s inflation rate. Value of money decreases due to rise in prices and hence many retirees
become poorly living people.

4.5.6 Withdrawal of funds from investments

From the findings, 3.1% of the respondents admitted to have withdrawn their funds from investment at
great extent while 59.4% were at small extent and 37.5% did not withdraw their funds from investment or
did not have investments at all. This implies that after retirement, due to delay in payment and insufficient
benefits, some retirees have to withdraw their money they invested in order to cover up costs of living.
Withdrawal of funds could lead to instability of the business due to high outflow of money than inflow
and may cause bankruptcy.

28
120

100

80

60

40

20

0
Not at all small extent great extent Total

Frequency Percent

29
 CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction
This study examines the barriers that pensioners encounter in obtaining  security benefits in Tanzania: It
was held in Dar es Salaam. It looked primarily at the methods used in processing Pension Benefits in
PSSSF and the major obstacles that retirees encounter while accessing pension benefits from social
security funds. Finally, it analyzed the impact of these problems on retirees and their families. This
chapter provides a summary of the findings and conclusions, as well as recommendations and areas for
further research.

5.2 Summary of Findings

5.2.1 Procedures Followed in Processing Pension Benefits
There are common procedures to be followed by a retiree before getting paid their pension benefits. They
include filling of application form of pension benefits which should be attached with several letters like
appointment and promotion letter, salary slips and bank details about a retirees account. Also, a retiree
should make follow ups to the PSSSF office one month before retiring to confirm the submission of
monthly contribution by an employer.

5.2.1 Prominent Challenges Faced by Pensioners in Accessing Pension Benefits

The study revealed that the considerable challenges face Tanzania public pension system but there are the
most prominent ones which affect a lot of people and at great extent. To mention from most prominent to
less prominent, those challenges include delay in payments, insufficient benefits, excessive unsuccessful
follow ups, delaying in processing information, incomplete contributions from employers, lack of
knowledge about the scheme and long and complex forms.

5.2.2 Impact of the Social Security Fund Challenges to the Retirees and their families
The findings revealed that due to social security fund issues, many retirees are effectively compelled to
live insecure lives and are unable to pay their basic demands due to pension delays and insufficient
benefits. Among the impacts they encountered due to challenges include, life stress, unemployment,
children drop out of school, debt accumulation, poor and high cost of living, withdrawal of funds from
investment and bankruptcy.

30
5.3 Conclusion
Following these data, it is possible to conclude that PSSSF employs a number of operating regulations and
processes that must be fulfilled before becoming a beneficiary. In terms of retirement benefits, a lump sum
is paid once after retirement, and the second half of the pension is paid once every month. Tanzania's
public pension system faces numerous issues, including complaints about inadequacy of benefits and
payment delays, to name a few. Many retirees are unable to meet their basic necessities due to social
security fund issues since they are financially deprived while still having financial responsibilities, such as
paying school fees for their children.

5.4 Recommendation
5.4.1 To PSSSF
(a) Sustainability of the Computerized Projects for Record-Keeping
PSSSF should ensure the long-term viability of computerized systems for readily tracking, identifying,
capturing, processing, and storing member payments and records.

(b) Overcoming Challenges

Despite the fact that the Fund and its clients face several obstacles, PSSSF should turn those challenges
into opportunities and establish solutions to tackle them in order to provide better services to members.

(c) Awareness creation

To raise public awareness and acceptance of the Scheme, the Fund should continue to educate the general
public on the necessity of social security and the benefits of membership in the PSSSF.

5.4.2 To Employers
(d) Employers should guarantee that members' contributions to PSSSF prior to retirement are equivalent to
the benefit they receive after retirement.

(e) Employers should timely submit to PSSSF the contributions deducted from their employees' salaries.

31
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33
 APPENDIXES

APPENDIX 1: QUESTIONAIRES

Dear respondent,

My name is Sharifa Hasan, a third-year student pursuing Bachelor of Science in Accounting and Finance
at Ardhi University. In partial fulfillment of the requirement for the award of bachelor degree, I am
conducting research titled “ASSESMENT OF THE CHALLENGES FACING RETIREES IN
CLAIMING THEIR PENSION BENEFITS, A CASE OF PSSSF DAR ES SALAAM”. The data
obtained from this questionnaire will be used for academic purpose only and will be treated with high
level of confidentiality. Therefore, I request for your sincere cooperation to fill this questionnaire and
participate in my research. THANK YOU

 Respondents Profile
1. Age Period after retirement
55 – 59 years

60 – 65 years

66 and above

2. Gender

Male
Female

3. Number of years have been contributed to the scheme

34
 Below 15 years
15 years and above

 Objective I: procedures
The following question contains the standard procedures to be followed by a retiree when claiming
their pension benefits from PSSSF. Mention procedures you encountered when claiming your
pension benefits by putting a tick to a particular procedure and answer addition questions below it.

YE NO
S
1 Six months before retiring, an employee should fill in his/her
information in a particular form from PSSSF (application for
retirement benefit)
The filled form should be accompanied with the following
attachments
2 Letter of appointment
3 Letter of notification of retirement from employer
4 Letter of last promotion
5 NIDA/ or voters ID or driving license
6 Salary slips of your last salary you received
7 Bank statement of the account your salary is being paid to (at least
one salary payment)
8 Recently salary slip
9 Personal record, i.e., marital status
10 One month before retiring, you should submit the form along with

35
 the required attachments to the PSSSF office
11 One month before retiring, you should make follow ups to the
PSSSF office to confirm the complete submission of your
contribution by the employer
12 Pension benefits shall commence on the month following the month
the member ceased to receive salary

13. Any other procedures?

……………………………………………………………………………………………………...
………………………………………………………………………………………………………………
………………………………………………………………………………………………

144. For how long did you make follow ups to the PSSSF office before starting receiving your pension
benefits?

Below 1 month
1 – 6 months
6 months and above

15. When did you start to fill the application form of retirement benefit?

Within 6 months before retirement

After retirement

 Objective II: challenges facing retirees in claiming their pension benefit from PSSSF
The following question refers to the challenges you faced when claiming your benefits from
PSSSF. Judge to what extent have you encounter those mentioned challenges using the following
scale by putting a tick on the respective box.
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 Not at all {0}, small extent {1}, great extent {2}

0 1 2
1 Delay in payments
2 Mismanagement of documents by PSSSF staffs
3 Incomplete contributions from employer
4 Excessive unsuccessful follow ups
5 Transport cost during follow ups (distance)
6 Lack of knowledge about the scheme
7 Insufficient benefits
8 Long and complex forms
9 Bad experience with PSSSF staffs
10 Detailed evidence needed
11 Delay in processing information
12 Poor record keeping by employers

13. Any other challenges if there is?

………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………

 Objective III: Impacts

On the following question, you are provided with the socio-economic impacts of the challenges
you face. Judge to what extent have you been affected from the challenges you faced/face in
claiming your pension benefits from PSSSF by using the following scale.
Not at all (0), small extent (1), great extent (2)

SOCIAL IMPACTS 0 1 2
1 Psychological effects
2 Life stress
3 Children drop out of school
4 Early death perception
5 Poor living standard

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 6 Low-income household

ECONOMIC EFFECTS
7 Low purchasing power
8 Withdraws of fund from investments
9 Instability of project/business
10 High cost of living
11 Debt accumulation
12 Unemployment
13 Bankruptcy

14. Were you able to cover up your health costs after retiring like how you used to before retire?

…………………………………………………………………………………………………

15. How did you manage to cover up the cost of living for you and your family?

………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………

16. Did you manage to pay for your children’s school fees and other school costs after retiring? If yes,
how?

………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………

17. What was the stability of your business after retiring (if you have/had)?

………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………

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18. Any other impacts if there is?
………………………………………………………………………………………………………………
………………………………………………………………………………………………

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APPENDIX II: INTERVIEW GUIDES
Interview guides for the PSSSF staff
1. How long does it take for a retired employee to receive his/her lumpsum after retiring?
2. What procedures do PSSSF employees follow before and after retirement in managing and
Processing pension benefits?
3. What challenges do you face in processing retirement benefit to the retirees?

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