Effect of Trustee Characteristics on the Performance of Retirement Benefit Schemes in Kenya
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The performance of pension schemes is imperative as they play a very significant role in the economy of any country. Over the few years the role of pension funds has been brought to the fore, specifically on trustee’s characteristics. The present study attempted to analyze the effect of trustee’s characteristics on the financial performance of retirement benefit schemes in Kenya. Specifically, the study determined the effect of gender diversity, financial expertise, work experience, board of trustee’s tenure and fund size. The study was conducted using a descriptive study design. The target population for the study comprised all the 1256 registered occupational pension schemes in Kenya as per the Retirement Benefits Authority (RBA, 2014). A sample size of 100 registered pension schemes was selected for the study through stratified and random sampling. The study used both secondary data and primary data. The data collected was for the period ending December 2016. The quantitative data collected was analyzed using correlation analysis with data presented through tables, charts and figures. The results revealed that open Mindedness and performance of retirement schemes are positively and significantly related (r=0.721, p=0.00). The study also found that that Learning Commitment and performance are positively and significantly related (r=0.348, p=0.003). However, the regression results revealed that Financial Expertise and performance were negatively but not significantly related (r=-0.077, p=0.517). The findings also revealed that Gender diversity has a positive but insignificant effect on the performance of retirement benefit schemes in Kenya. Consequently, the study concludes by recommending that the management of RBS in Kenya should emphasize on constructive debates on any investment decisions made on behalf of the scheme members as a way of enhancing open mindedness among the board of trustees.