The contribution of organisational factors to the performance of the public service pension scheme in Uganda

Abstract

The study focused on investigating the relationship between organizational factors and performance of the public service pension scheme with Ministry of Public Service as the case study. This was achieved by analyzing the relationship between pension policies and performance of the public service pension scheme; procedural levels and performance of the public service pension scheme; & records management and performance of the public service pension scheme. The study employed a cross sectional research design and both quantitative and qualitative approaches. In total, a sample of 155 respondents included top administrators, pensioners and officials in the public service pension scheme. In collecting the data, the researcher used both secondary and primary sources. Data collection methods used was questionnaires and interviews, and was analyzed using Pearson correlation coefficient, Analysis of variance and regression analysis. The study findings revealed that: there is a significant relationship between pension policies and performance of the public service pension scheme; procedural levels and performance of the public service pension scheme are significantly positively related and, records management and performance of the public service pension scheme are significantly positively related. In conclusion therefore; a) A backlog in the pension scheme performance can also result from poor records; for example, when files get lost often b) Lengthy procedures results in spending too much time in locating files and attending to them. Misplacing important files and documents can incur losses in terms of expending resources in searching for these files. Customer satisfaction will also be jeopardized if procedural levels are lengthy. It was recommended that; i) There is need for reform of the schemes based on the inability of the scheme to balance its liabilities with the financing obligations. In order to address the problem of benefit financing, policymakers may consider systemic reform of the scheme from the current non-contributory defined benefit scheme to a pre-funded scheme on either defined benefit basis or defined contributory scheme. ii) The Ministry of Public Service should provide full, regular and easily accessible information about pension scheme for example publishing periodical documents with information about the pension scheme. (iii) The pension scheme should be decentralized such that cases are handled at district level to avoid lengthy procedural levels and expenses entailed in making frequent movements to Kampala.