A strategy to improve Government Employees Pension Fund Management in the North West Province

Abstract

This research focuses on decentralisation of financial control as a strategy used to improve decision-making in the Provincial Office to improve of the performance of Government Employee Pension Fund in the North West Province. The research examines the role of the central government in decentralisation of financial control by exploring the administration of pensions expressed through the Government Employee Pension Fund. A common feature in the implementation of this strategy is the devolution of authority to the Provincial Office in the decision-making in the management of resources. According to Raywind (1990), the deployment of the strategy stems from the view that when decisions about financial management are devolved to the province, better decisions will be made that affects employee's performance positively. This includes devolution of state allocated budget and delegation of financial management responsibility to the North West Provincial Office through the province as a primary Pension Fund delivery system for the state. To assist both the National and the Provincial Office in carrying out their responsibilities, a model for Provincial Based Pension Fund Management is presented in this research. The research methodology applied is mixed method of both qualitative and quantitative method with a population of 500 stakeholders and a sample of 50 stakeholders. The research findings from both the literature and empirical research include establishing the structure of the Provincial Office and functioning of the Provincial Based Financial Management Structure. The role of the Provincial Office staff will be transformed from recording and filing to planning, organising , leading, controlling and co-ordinating the budget including giving technical advice, guidance and support.