Impact Assessment of the 2004 Pension Reform on Retirement Welfare of Public Servarnts of Selected National Commissions

Impact Assessment of the 2004 Pension Reform on Retirement Welfare of Public Servarnts of Selected National Commissions.

ABSTRACT

One of the fundamental motivating factor for most public employee that any government must not toy with is the existence of an effective pension system that can adequately reward employees in-service efforts after retirement. Therefore, the Nigerian government in 2004 realised this fact and embarked on a reform of the pension industry to remedy lingering issues therein.

This thesis thus, investigated the Impact of the 2004 Pension Reform on Retirement Welfare of Public Servants of Selected National Commissions. Based on this, the statement of the research problem is as thus: haven practiced a new pension scheme for over a decade now, what has happen to public workers retirement welfare since adoption.

This also form the basis of the research objective as it thus find out the status of retirement welfare of public employees as a way of impact of implementation of the policy since its adoption in the public sector videlicet. How the level of compliance has boosted employees confidence, and how the scheme has accommodated employees through timely registrations thus ensuring prompt payment and guarantee them comfortable life after retirement.

The study was therefore based on three hypotheses. Both the primary and secondary data were employed for the research, while it also used statistical tools of chi-square and regression analysis to test the hypotheses and further the study analysis. Hence, the thesis revealed among others that; public organisations are complying with the provisions of the 2004 pension scheme in the course of their implementation.

TABLE OF CONTENTS

Cover Page – – – – – – – – – – -ii

Title Page – – – – – – – – – – -iii

Declaration – – – – – – – – – – -iv

Certification – – – – – – – – – – -v

Dedication – – – – – – – – – – -vi

Acknowledgement – – – – – – – – – -vii

Abstract – – – – – – – – – – -ix

Table of Contents – – – – – – – – – -x

List of Tables – – – – – – – – – -xiv

List of Figures – – – – – – – – – -xv

Abbreviations – – – – – – – – – -xvi

List of Appendices – – – – – – – – – -xviii

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study…1

1.2 Statement of the Research Problem…………..4

1.3 Research Questions……………6

1.4 Objectives of the Study………….7

1.5 Hypotheses…………….7

1.6 Scope of the Study.……………..8

1.7 Significance of the Study …………8

1.8 Definition of Terms…………10

CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1 Introduction……………….12

2.2 Literature Review: The Concept of Pension..………12

2.2.2 Pension Reform and Workers Welfare…………13

2.2.3 Pension Reform and Implementation of Public Policy…………….15

2.2.4 Pension Scheme in the Public Sector and Employees’ Retirement Welfare………16

2.2.5 Scholarly Views on Public Sector Reforms: Government Intervention……19

2.3 Theoretical Framework…………………24

2.3.2 Application of the Rational Comprehensive Theory to the Analysis………………27

CHAPERT THREE: RESEARCH METHODOLOGY

3.1 Introduction………….31

3.2 Research Design……………….31

3.3 Population, Sample Technique and Sampling Size ……….31

3.4 Sources of Data ….. …………..34

3.5 Administration of Instruments…………36

3.6 Methods of Data Analysis …………38

CHAPTER FOUR: HISTORICAL EVOLUTION AND STRUCTURE OF THE NIGERIAN PENSION INDUSTRY

4.1 Introduction…….40

4.2 The Nigeria Pension System in the Public Sector Before 2004………40

4.3 2004 Pension Reform……….42

4.4 Strategic Implication of the CPS to Stakeholders……..46

4.5 2004 Pension Reform Implementation Efforts so far……53

4.6 Transitional Arrangements from the Old Pension Scheme to the New Scheme..57

4.7 Safety Nets for the Contribution Pension Scheme………….59

4.8 Administration and Governance of the New Pension Scheme………62

4.9 Amendments to the Pension Reform Act, 2004……….68

CHAPTER FIVE: DATA PRESENTATION AND ANALYSIS

5.1 Introduction…………………71

5.2 Data Presentation…….71

5.3 Data Analysis…………89

5.4 Major Findings…………….96

CHAPTER SIX: SUMMARY, CONCLUSION AND RECOMMENDATIONS

6.1 Introduction……….99

6.2 Summary……….99

6.3 Conclusion……..100

6.4 Recommendations…101

Bibliography………104

Appendix…………….106

INTRODUCTION

Following the re-establishment of civil rule in Nigeria in 1999 after decades of military regimes, the administration with which the fourth Republic took-off had to respond to a number of systemic challenges which made reforms inevitable. The political, social and economic environments needed to be altered considerably in order to inject some confidence in government by citizens who had helplessly watched the declining fortunes of the nation over several decades (PSR, 2008).

The need for reform was adjudged globally as the role of government had also changed dramatically the world over. Accordingly, considerable and deliberately planned changes were put in place by the administration to effectuate reforms in the machinery of governance. Thus, following the government’s resolve, a wide range of reforms were embarked upon in 2004 in the form of public policy intervention.

The reforms thus resulted to the introduction of practical policies on monetization, public procurement/due process in government activities, pay reform, reforms of the Ministries, Departments and Agencies (MDAs), National Health Insurance Scheme (NHIS), privatization and commercialization, anti-corruption etc. Also among these areas where the 2004 public service system wide reforms were embarked upon was also in the area of employees’ retirement welfare; in other words, Pension.

BIBLIOGRAPHY

Asika, N. (2010): Research Methodology in the Behavioural Sciences; Longman Nigeria plc, Lagos.

Bassey N.E., Etim O.U. and Asinya F.A. (2010): An Overview of the Nigerian Pension Scheme from 1951-2004; Global Journal of Humanities, vol. 7 No. 1&2.

Chizueze,C.I.; Nwosu, U.W. and Agba, A.M.O. (2011): Contributory Pension Scheme, Workers Commitment, Retention and Attitude towards Retirement in the Nigeria Civil Service; Global Journal of Management and Business Research, vol. 11 Issue 4, March 2011.

Daily Times Newspaper; October 18th, 2012: PENCOM Pays N1.77b monthly as Pension-DG; www.dailytimesonlinenews.com/news/october-2012/php

Daily Trust Newspaper; Thursday 30th May, 2013; page 60

Daily Trust Newspapers; Thursday 30th May, 2013; pages 26 and 27

Fapohunda, T.M. (2013): The Pension System and Retirement Planning in Nigeria, Mediterranean Journal of Social Sciences, Vol.4 No.2, MCSER-CEMAS, Sapienza University, Rome.

StudentsandScholarship Team.