Contributory Pension Scheme and Its Impact on Retirees In Selected Public Organizations

Contributory Pension Scheme and Its Impact on Retirees In Selected Public Organizations.

ABSTRACT

The contributory pension scheme was introduced to resolve pension issues such as delay in monthly pension payment, and incapacity of some retirees to cater for their needs, both occurring as a result of the failures of the old pension scheme.

However, having been implemented for 10 years (2004 – 2014), by the Pensions Commission, the study tends to ascertain whether any delay still exist in pension payments, and whether the pool of saving as suggested by the contributory pension scheme is able to provide the needed livelihood for retirees,

This study evaluates the contributory pension scheme to find out if the scheme has resolved the delay associated with monthly pension payment and if what retirees receive as pension are sufficient for them to cater for their needs.

In doing so, we used a survey research design, wherein we randomly sampled the opinions of retired beneficiaries of the pension scheme from 2008-2014, from Seven Federal Establishments in Nigeria.

The opinions of these sampled beneficiaries were collected using a questionnaire and interview.

INTRODUCTION

Background of the Study

Pension as a subject has witnessed reforms due to its relevance in the world today. These reforms were made possible with the increasing public interest on the issue of pension.

What has brought about such increased public interest lies mostly on domestic socio economic factors such as the concerns raised about the ability of members of the older population to cater for themselves after retirement.

Pension scheme is an aspect of social security scheme; it is a policy that was designed to provide retirement benefits to employees leaving an organization.

The idea of retirement benefits was introduced into Nigeria public service sector with the enactment of pension’s ordinance during the British colonial era.

This ordinance was enacted in 1951 and had a retrospective effect from January 1, 1946. The pension system in Nigeria has witnessed different changes since the country’s independence in 1960.

However, in 1979, the pension decrees No. 102, 1979 (which also had retrospective effect from April, 1974) was promulgated and it consolidated all previous enactment (Faruk, 2011).

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REFERENCES

 Abdul-Ganiyu. G. The New Pension and Nigeria worker. A paper presented at a workshop on pension Reform Act A.B.U staff union; at IDR Samaru Zaria 1^st April, 2006.

Aborisade, F. (2008) An Assessment of Nigeria’s Pension Reform Act of 2004.www.scribd.com

Anthony. E.I: The problem of pension Administration in ABU and the Transition to the New Scheme. A paper presented at the workshop on pension Reform Act 2004 by

A.B.U staff Unions, at IDR Samaru Zaria 1^st April 2006.

Bahago, F. J., Ogunlela, Y. I., and Faruk, A. (2010) The Implication of Contributory Pension Scheme on Pension Administration in the Nigerian Public Sector. Being a Paper Presented at the 2010 International Conference on Global Financial Crisis and Africa’s Quest for Development, Organized by the Faculty of Admin.,B. U., Zaria at Kongo Conference Hotel, Zaria.