Evaluating the impediments in the effective performance of pension schemes; case study: NSSF Uganda

Abstract

Well-functioning regulatory, investment and governance strategies usually result into an effective pension scheme. In this context, a study was carried out to examine the impediments affecting the effective performance of pension schemes in Uganda; a case of NSSF Uganda. The specific objectives were to establish the effects of regulatory, investment and governance impediments on the effective performance of pension schemes in Uganda. The study adopted a case study design in which both qualitative and quantitative approaches were applied. There were 96 NSSF staff and 11 pension sector actors that responded to the study. Data was analysed using SPSS programme to generate descriptive statistics, Pearson correlations and multiple linear regression results. Likert scale was used to find out the views of NSSF staff on regulatory impediments, investment impediments, governance impediments and the performance of pension scheme at NSSF Uganda. The study findings revealed that regulatory impediments had a moderate negative effect on the effective performance of pension scheme at NSSF Uganda (β=- 0.232) after performance of a multiple linear regression analysis. Correlation analysis results showed that there was a moderate negative correlation between regulatory impediments and effective performance of pension scheme at NSSF Uganda (r=-0.223*, p<0.05). Results further showed that investment impediments had a moderate negative effect on the effective performance of pension scheme at NSSF Uganda (β=-0.234). Correlation analysis results showed a moderate negative correlation between investment impediments and effective performance of pension scheme at NSSF Uganda (r=-0.198*, p<0.05). Multiple linear regression analysis indicated that governance impediments also had a weak negative effect on the effective performance of pension scheme at NSSF Uganda (β=-0.078) although it was statistically insignificant. On the other hand, Pearson Correlation coefficient (r) showed that there was a moderate negative correlation between governance impediments and effective performance of pension scheme at NSSF Uganda (r=-0.107*, p<0.05). Qualitative data confirmed governance impediments had a significant effect on the effective performance of pension scheme at NSSF Uganda. In conclusion, the study findings revealed that regulatory, investment and governance impediments had a significant negative effect on the effective performance of NSSF pension scheme. This therefore calls for strategies to minimise or eliminate the effect of these impediments. To this end therefore, the study recommends; harmonization of conflicts between the NSSF act 1985 and URBRA act 2011, lobbying for increased investment opportunities and electing of pension contributor representative on the NSSF board.