Corporate governance and investment performance in the public pension funds: (a case study of Public Service Pensions Fund, National Social Security Fund And Parastatal Pension Fund)

Sustainability of pension funds depends on investment performances. Corporate Governance is indeed the key issue influencing performance of public pension funds. This study was designed to analyze investment performances in relation to corporate governance. The analysis focused in three pension funds in Tanzania, namely, the Public Service Fund, National Social Security Fund and Parastatal Pension Fund. The study is qualitative and used both primary and secondary data. Questionnaires were used to collect data from 30 contributors of each pension fund. Furthermore, the Fund Senior officials were interviewed. Published Annual reports, books and Journals also formed an information source. The study results showed that corporate governance procedures applied in the pension funds in Tanzania have been effective to some extent in achieving the goals and objectives upon which they were set. The study used ROI as a measure of performance. The analysis showed that, corporate governance has an impact on investment performance of the pension funds. Furthermore, corporate governance is not the only issue influencing investment performance in the pension funds but market conditions were also identified s other factors affecting performance. Conclusively, the study identified gaps in practicing corporate governance in the pension funds. It has been recommended to establish a pension regulatory body which is expected to set rules under which all pension funds should operate, as one of the measures to fill in the identified gaps.