An Empirical Study of the Reasons for Client Dropouts from Contributory Pension Schemes of Sri Lanka Social Security Board

Abstract

The study attempts to explore the causes of client dropouts of the said pension schemes in the Sri Lanka Social Security Board (SLSSB) to identify the mechanisms to overcome the weaknesses in providing a successful pension scheme. The study employed the embedded mixed method from nine Grama Niladhari Divisions in Gampaha, Badulla, and Matale Districts. A purposive sampling method was used and primary data were gathered using simple observation, key-informant interviews, survey with questionnaires and in-depth interview methods; secondary data, using government reports and relevant literature; SPSS package, used in analyzing quantitative data; content analysis, used in analyzing qualitative data. The findings revealed that socio-economic factors such as gender, occupation, income, expenditure and the number of dependents significantly affect the client dropping out of the pension schemes. Furthermore, lack of proper awareness among both active and inactive members regarding the contributory pension and social security benefit schemes of SLSSB was also a key contributory factor to client dropouts; in terms of institutional inefficiency of SLSSB, lack of a proper follow-up process, incompetent record-keeping, misinformed recruitments, having inadequate staff also seen as contributing factors. The lack of proper awareness and information dissemination about the institution and its program to the general public has created a distance between the SLSSB and the contributors. Enhancing the quality of customer service and taking proper measures will reduce this distance minimizing dropouts and developing an effective pension scheme.