To Assess The Advantages Of Pspf Investments To Its Members And Suggest For Common Guidelines Which Will Govern Investment Of Social Security Funds In Tanzania

ABSTRACT

This study was carried out in the Public Service Pension Fund (PSPF) headquarter, Dar es Salaam. The objective of the study was to assess the advantages of PSPF investments to its members and suggest for common guidelines which will govern investment of social security funds in Tanzania. Specific objectives were to determine how assets allocation are made strategically among various categories of investment portfolios of Pension Funds in Tanzania, to examine how best the guidelines for investments of social security funds can benefit its members, so as to ensure its sustainability, and to determine the advantages obtained by PSPF investments to the benefit of members. Non experimental design and cross-sectional were used in order to assess the advantages of PSPF investments to its members and suggest for common guidelines which will govern investment of social security funds in Tanzania. Questionnaires, In-depth interviews, focus group discussion and intensive documentary reviews were used for data collection purposes. Findings from this study observed that PSPF uses different investments fixed income assets and equities. It employs asset allocation on Government securities in the form of treasury bills and bonds, real estates and bank fixed deposits account. Most of the assets are allocated on the government securities. Furthermore, findings revealed that despite many challenges the PSPF has tried its best level to deploy proper guidelines for investments like safety, yield, liquidity, prudence, diversification, economic and social utility though investments‘ guidelines and policy objectives on governing its investments are not yet fully implemented. Therefore, the study concludes that PSPF investments are very advantageous to its members if all its guidelines which govern investment are fully implemented this institution. Finally, the study recommended on the feasible approaches in which PSPF can adopt in responding to the challenges of global crisis and exploit emerging investments opportunities.