Private Organization Employees Pension Fund Administration In Ethiopia Current Challenges And Possible Reforms In Light Of The Private Pension Proclamation No 7152011

Societies at all levels recognize the importance of establishing systems which will ensure loss ofrnincome in a situation when unforeseen circumstances happen such as incapacity, old age,rnunemployment and the death of an employed person. In order to tackle such challenges, newrncomprehensive and workable social security system is necessary. So countries of the globe haverndeveloped different types of social security system according to their factual situations but pension isrnthe main one. Formerly the administration and regulation of pension is controlled by governmentsrnalone. However, currently countries are reforming their monopolistic management of the pension fundrnand shifting the responsibility to the private sector by retaining only the regulatory role. The reasons ofrnthe reform are due to inefficiency, non political neutrality, less national saving, less quality service andrnthe likes in the state management.rnEthiopia also established its own social security system in 1961 in the public servant sector, since 2011rnit established the private organization employees’ social security pension system. Currently both thernpublic and the private sector pension funds are administered by the government. However, there arernchallenges with the administration of the pension fund in private organization employees’ socialrnsecurity Agency, and complains are arising from stakeholders to this regard.rnThus this research is aimed to show the challenges in relation to the administration of the pension fundrnin the private organization employees’ social security Agency. The study used doctrinal and empiricalrnmethods and employed secondary data from books, reports, journals, articles and internet sources asrnwell as primary data from interviews. Interviews were conducted in government institutions. DifferentrnEthiopian legislations which have direct relation with the matter were assessed.rnIn the process, issues like challenges in relation to, the investment of the fund, amount of retirement,rndecision on the benefit of the pensioners, in collection of the fund and in the legal provisions arerndiscussed. Finally possible reforms are indicated that privatizing the pension fund management isrncrucial to attain the objectives of the pension. In so doing the structural organization of the privaterncompanies which participate on the sector, investment diversification, instruments for the regulation ofrnthe privatization pension fund investment are indicated.

Get Full Work

Report copyright infringement or plagiarism