INTRODUCTION

Background of the Study

Aging is inevitable and its experiences are essential components of an individual. As people age,

they are expected to experience adverse life conditions and major life events. It should be noted,

that age is one of the fundamental categories of today’s social relations. Objectively,

socioeconomic position and financial standing play a huge role in how elderly people perceive

their aging experiences. A common perception is that old people experience considerable health

and financial difficulties and, for this reason, cannot enjoy the pleasures of life. Not everyone

experiences the same standard of living. The majority of residents in Camiling, Tarlac, especially

seniors, are uninformed of the public fund and benefits provided for the aged. The pension funds

show us the alternative to the unfunded systems.

This is the reason for long-terming attention. Disadvantages of funds financing include problems

as indexation, inflation, or administrative and investment costs, which are decreasing the future

profit for pensioner and efficiency of pension funds (Pokorny & Hejdukova, 2021).This study

aims to describe and analyse the administrative and investment costs and the determinants that

affect these costs. The result of this study is an indication of the content and significance of costs

and the definition of the main determinants influencing these costs.We conducted this study in

order to figure out what factors are preventing senior citizens in Camiling, Tarlac, aged 60 and

above from receiving their pensions.

Statement of the Problem

Having Pension Funds is one of the benefits that elders can got. It must be provided adequately

and correctly. In this research, we aim to identify the problem when it comes in receiving

pension funds. This study also seeks to know how utilize they utilize what they receive and is

there improvement. This study also seeks to answer the following question:

1. Who are the pension recipients? Is there an agr requirement to receive it?

2. What are the problems when it comes to them receiving their pension?

3. How do they use it and how does it help them?

4. When do they receive and what must be done to receive it?

Objectives of the Study

This study aim to inform the senior citizens of Camiling, Tarlac of their benefits and their

rights to receiving their pension. Furthermore, we intend to assess and explore how the recipient

utilize their acquired benefit. At the end of this study, we aim to propose recommendations to aid

factors affecting the distribution of public pension funds in Camiling, Tarlac.

Significance of the Study

The result of this study will be useful to the following:

 To the senior citizen of Camiling, Tarlac, to inform them about the benefits they can get

and to give them knowledge on the correct process of obtaining it.

 To the caregivers of senior citizens, so that they can help their parents whom they care for

and give them what they deserve.

 To the future researchers, this study can be a useful reference for students who intend to

do the same study.

Scope and Limitations of the Study

The scope of the study is the governance of public pension funds for the elderly in Camiling

Tarlac. The study will focus on the challenges and potential solutions for good governance of

public pension funds, including the alignment of authority, responsibility, oversight, and

expertise, as well as the ability to adapt of the retirement system to changing funding levels and

market returns. The limitation of the study is that it will only focus on public pension funds for

senior citizens in Camiling Tarlac and may not be applicable to other regions or countries.
Definition of Terms

 Pension Fund A pension fund is a program, fund, or scheme that provides retirement

income. It is typically managed by professional fund managers on behalf of a company and

its employees, and can control vast amounts of capital, making them among the largest

institutional investors. Pension funds are typically exempt from capital gains tax and can

invest in a variety of assets, including stocks, bonds, and real estate.

 Aging- Aging can cause a variety of changes in the body, including graying hair, sagging

and wrinkling skin, joint stiffness, osteoporosis, loss of muscle fibers and muscular strength,

memory loss, eyesight deterioration, and the slowing of sexual responsiveness.

 Retirement- Retirement is the withdrawal from one's position or occupation or from one's

active working life. It can involve full retirement, semi-retirement by reducing work hours,

or returning to work after retiring. Many people choose to retire when they are elderly,

incapable of doing their job due to health, or when they become eligible for private or public

pension benefits.

 Insurance- a financial product that provides protection against financial losses. It is a

contract between an individual or an entity and an insurance company, where the individual

or entity pays a premium in exchange for coverage against specific risks. There are different

types of insurance, such as auto, home, renters, life, and more.

 REVIEW OF RELATED LITERATURE AND STUDIES

These studies highlight the importance of pension policies in shaping the well-being and

consumption patterns of senior citizens. Factors such as pension levels, insurance types, and

program implementation can significantly impact the lives of older adults, influencing their

choices of care models, health outcomes, and overall well-being.

Related Literature

Social Insurance, along with Labor Market Interventions, Social Welfare, and Safety Nets, are

components of Social Protection, which has been elaborated on and defined for the Philippines

as “Programs that aim to reduce income risks by pooling resources and spreading risks over time

and years.” They are designed so that beneficiaries pay a contribution over a certain period of

time to compensate for loss of income and unemployment due to

illness , accident , disability, cost reduction, crop failure, maternity,

old age etc. to cover or insure. " (Neda 2015). Most state and local government employees (83

percent of those working full time) participated in a defined benefit (DB) pension plan in 2018,

and nearly all (94 percent) had access to such plans. These public pension plans typically provide

pensions based on members’ years of service and average salary over a specified number of

years of employment. Many members also receive cost-of-living adjustments that help maintain

the purchasing power of their benefits in retirement.

According to the United States Census Bureau (2016), there were a total of 6,276 public pension

systems across the nation as of fiscal year . Of those systems, 299 were administered at the state

level, and 5,977 at the local level. In those 6,276 systems, a total of 20.9 million people were
members. Of these members, 70.02 percent were active. Active members are defined as

members who are making contributions or receiving benefits from a pension system.

Pension system crisis (1980-2021). Economic and demographic change shave reduced the

number of contribution payers relative to pension recipients; financial problems require

structural changes in pension systems. The coronavirus pandemic is creating new challenges

related to restrictions on economic activity and forced mass unemployment. In addition,

Cournède and Gonand (2014) find that raising retirement age is optimal based on a likely boost

in growth and improved public debt dynamics. Real GDP growth is stronger when rebalancing

the pension regime by increasing the retirement age (and containing spending) rather than

lowering replacement rates and raising taxes

Related Studies
Conceptual Framework