Abstract:
Pension .vy.•·tem is provided m important means of ensuring social wruru, 111 a country h." deltvering
retirement income lo the elder and other benefit' such as invalidity. employment 111j111J and survivors
pl mum. Apat I from the public penvton system tltat 1•ia1nh coverv the provisions of pe11~w11 /i1r the
public employee s, Private managed pension system becomes pla: 1111{ itv rok tn thr private sector
1•111plo1' L'S and in the econonuc de velopmeut o/ the countrv al larg1•
!11 Etluotna formal private or1-?a111=at1011 employees' pension S\SfC"1 \WS estubltshed /w the tir« tune
tn 20//.llus pension system I\ t11!..t.·11 m mom 1/i11g step towards expanding social \l'c11r111 r•1 the
private sector employn:s who had not pe11s1011 covcrog« /m a long time fl/ tlu: r·m1111n. The reason
11hy 11 I\ xpandcd to private sector employn•, ts not seen separ. llt-~I' fm111 the whole p111p0\1' of
1w11\ion wsten. in country ft 111te11tt.~ to bring 11m 011~1 ''"'"r111g 111cv111c securin of tlu: 'mJllo) t.'l'.' hut
also cco1101111c mu/ social development 111 tlu: couutrv In· creating iudustnal pcac« and ,·111001/r
rclauon 11. tire \\Ork111g class of tlu: society.
This paper mvestuiates t.\.\111.;S of the 11~··~u 1111rr,d11c.:d private organrranon emplo« CL'S· pi!mton
system and that of the need for further i111pro\v11e111111 Etluopia Issues like the fea/111·1• mu/ n111te111 of
the current ll!gal n gimc, pracuces (11((/ tmplcmeutution; areas and further rcfo, 111 111cas111 cs are
analysed.
flu. fl11ding of the research shows that there " 11·u1/iJ1t•\ \ 011 tire side fJ{ 1/,1• pr milt.' orga111:c/f1011
employee social wcuntv agency i11 the administration mu/ governance of lire prtvute vector
emplt~rees · pension system '~/ the co111110 low perfurmance of pension fund i111·es1111e11t and
registmtion of employees and pnvate orgamzauous to 1w1ke tl.cn: 111c111/)( r unt! bcncficumcs o/ tlu:
pension scheme are obsc) vcd Ihe /X!ll\1011 law that governs such pension \V.111!111 ofthe countrv IS
also 111.rnj]icielll 111 us scope of application so as to cover the whole formal prtvntt orgamzano»
emplovccs. Tims tlu: rewarch has provided cc rtain solutions so a\ overcome rite identified proh/1'1111
i11 this research paper.
Ab tract
Ke)' words: Pe11\ICJll svstem, Private orgtuuzution Employees Pension svstem. Reform 1111·mw·e