INTRODUCTION
1.1 Background Of The Study
In Nigeria Local Government System the issue of pension has come to limelight to the knowledge of an average man in the country. It is equally unequivocal that a great number of people’s life depend on their monthly retirement pension and therefore it should be an issue of paramount importance to the society at large.
The ultimate aim of all workers in any well established organization be it federal, state, company or local government is to be fend for oneself on retirement from service or to obtain some relief in the event of being incapacitated or even for the relations to claim some benefits after death. Pension and gratuity suppose to serve these purposes.
Pension is a periodical payment made especially by government, company or employer in consideration of past service or relinquishment of right and gratuity on the other hand is a fixed jump-sum payment usually granted immediately upon the retirement of an officer . Concise Oxford Dictionary: 1964 and from a legal perspective, no arm of government ever existed without an instruments or existed without them
Pension programmes in Nigeria have generated lots of problems and concern both locally and abroad. With elderly people queuing for long hours and some dying in the process hours and some dying in the proves for just their widow’s mite which they are entitled to after spending their active life in the service of their various organizations, it became necessary to examine the laws that governed pension administration and come up with recommendations that would ensure prompt payment of pensions also provide adequate funds for such payments in order to forestall such erratic and irregular payment problems.
The Pension Reform Act, 2004 (“The Act”) was passed into law on the 25th June 2004 by the national Assembly, repeating the pension Act 1979 and amending the NSITF Decree of 1993 to achieve the above objective
Although the reform remains a very positive move to ensure that pension in Nigeria are effectively administered, the system of operation, and even the act still posses some challenges
Pension administration has come to be as it is to deal with a wide spectra of life and management of pensions who served and spent major part of their youthful period in the service of the state or local governments. The trend and enlargement of the local government made this study worthwhile as to delve into modalities and ways to meet up with the challenges and demands possed by this ever increasing number of men and women who are on the exist form the service.
The erroneous impression about retirement and pension which is fast gaining a higher dimension in the circle of those about to retire is a major focus of the study moreso to suggest ways toward the amelioration of sufferings of the retirees and channel the burden into government through a functional approach.
In 1989 the provisional ruling council established local government pension boards in each state of the federation. Each board was charged with the responsibility of paying the retiring benefits (pensions and gratuities) to the local government retires.
In Ebonyi State, the local government pension board was established a in 1999 by the state edit No. 10 of 1999. The edit contains the ingredients of pension Act 102 of 1999. The contents of pension Act has goodwill for local government retirees but pension administration of Ebonyi State Local Government is not taking its right part,. The emphasis on functional approach to pension administration in Nigeria local government and the attainment of all the goodness that is involved in building a virile pension office staffed with dedicated and more responsible officers who will cater for the pensioners is advocated in this study.
1.2 Statement Of The Research Problem
For decades, many people who retired from the public service especially the local government councils complain bitterly about the problem they encountered or are still encountering in terms of their monthly pension and gratuity. This equally gives those about to retire some concern as to what is going to be their fate on retirement.
The reason(s) why government has not taken a decision action toward a final decapitation of the heinous problems of the people too old for work or be used for their original purposes is rather strange and difficult to explain. On the other hand, is government deaf or blind over increasing number of men and women who slumped and died in the bid to collect retirement pension allowance
It will be gross insensitivity of government to the plight of men and women who served in their various capacities languish instead of ensconced in this later part of their lives or could it be that government is no longer capable of fulfilling its obligation to retiring officers and is gradually phasing out pension and gratuity? The issue of pension is now a common feature on the faces of national deities , radio commentaries and so may magazines.
The deplorable took of dejection on the false of the retires is enough on the faces of the retires is enough indication that all is not well and by the complaints of these men and women, it is adduced that:
a. The processing of retirement files are unduty destroyed
b. There is tack of commitment to duty by the pension administrators
c. Pension fund is divested at Latin point before reaching the retirees
d. Monthly pension allowance is not enough to sustain the pensioners
e. Unskilled and indolent officers dominate the staff strength of the pension office
f. The absence of supervision and check by higher authorities is a major cause of laxity and ineptitude on the part of the pension administrators.
Anwana: 1996 summed up that the dreaded mammon in pension administration is shortage of skilled personnel and general staff.
1.3 Objectives Of The Study
The broad objective of this study is to advocate a functional approach to pension administration in Nigeria local government system. It is also aimed at getting down to the root cause of prevalent problems militating against proper pension administration through the application of an empirical chagnose of the bureaucratically processes of the bureaucratically processes applied in pension administration. The study is set to achieve the following specific objectives:
1. To identify whether the pension administrators are living up to expectation and equally the problem facing them.
2. To examine the strength, caliber and experience of the staff deployed to carryout these jobs
3. To describe the extent and type of materials at the disposal of the workers in the pension office.
4. To examine the actual system and working environment under which the pension worker operate
5. To establish the degree of neglect/ disregard to duties all to the detriment of the retirees.
1.4 Hypotheses
on the basis of the foregoing discussions on functional approach to pension administration in Nigeria local Government system, and in accordance with the problem under study, the research wishes to formulate the following hypotheses.
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HO: |
The pension administrators are not giving up to expectation and there are problems facing them |
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H1: |
The pension administrators are giving up to expectation and there are no problems facing them |
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HO: |
There is no degree of neglect/disregard to duties by pension administrators that is detrimental |
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H2: |
There is degree of neglect/disregard to duties by pension administrators that is detrimental to retirees |
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HO: |
The pension administrators deployed h |
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H3: |
The pension administrations deployed has the strength, knowledge and experience to carryout pension administration duties. |
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HO: |
There is no availability of materials at the disposal of pension administrators |
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H4: |
There is availability of materials at the disposal of pension administrators |
1.4 Scope and Limitations of the Study
Basically there are several issues related to pension administration in Nigeria as a whole but this research shall be limited to the prevalent problems militating against proper pension administration in Nigeria local government system.
Notwithstanding, during the research work the researcher encountered many problems at the process of writing project which some of them are :
Fund: Lack of fund has helped in hampering the progress of the research work in as much as there is no money to run the affairs or transporting to appropriate office to collect materials for the project.
Unavailability of Materials: Unavailability of martins for the fact that the government officials were not always on seat who should have provided adequate and useful information, and the reluctance and un-cooperative attitude of some of them in releasing data or information relevant to the study.
Time: thirdly, during the research work the researcher was faced with combing civil service work and writing of the project at the same time.
1.6 Significance of the Study
This study relates to a practical problem with a wide range of administrative and resource management. In essence, the significance of this study cannot be overemphasized if one considers the fact that the issue of pension problems touches the life of one, families, relations and the society in general.
Therefore, pension is a life matter and should be viewed with every seriousness as a shabby handling of its matters might perpetuate discomfort and lose of life.
Thus, this study is significant in the following ways:
1. It will serve as a guide and source of information to impart fair knowledge and proffer solutions to problems especially to pension fund managers for the improvement of their job.
2. The entire erudite world of civil or rather public servants will be greatly enriched and equipped with knowledge in the course of their impending retirement
3. Pensioners as well will benefit from this study as to be well informed in pension matters as it affects them.
4. Finally, this research work will be a foundation for further research works on this topic or other related issues
1.7 Theoretical Framework
To undertake this study, the research work adopted motivation theory . one of the theories under content approach of motivation theories is the Maslow need hierarchy theory developed by Abraham H. Maslow
Since theories are integrated set of propositions intended to explain certain phenomenon, intended to explain certain phenomenon, the adopted theory of motivation will be of great importance and apt to explain why men work. Human linetives are based on needs whether consciously or sub-consciously felt. Some are primary needs such as the physiological requirement for water, air, food, sex, sleep and shelter other needs may be regarded as other needs may be regarded as secondary, such as self –esteem, status, affiliation with others, affection, giving, accomplishment and self assertion. These needs vary in intensity and over time with various individuals Harold Koontz: 1980.
Bereleson and Steiner are quoted in he definition of the term motive as:
The inner state that energizes activates or moves (hence motivation) and that direct or channels behaviour towards goals.
In other words. “Motivation” is a general term applying to the entire class of drives, desire, needs, wishes and similar forces, Harold Koontz: 1980. Further the theory of motivation is buttressed by using Vroom’s “Epectancy Theory” forward the understanding of motivation Vroom suggested that:
A person’s motivation forward an action at any time would be determined by his or her anticipated by his or her anticipated values of all the outcomes (both negative and positive) of the action multiplied by the strength of the person’s expectancy that the outcome would yield the desired goal.
Nwachukwu (1988) in his own contribution sees motivation as:
An internal psychological process whose presence or absence is inferred from observed performance.
The essential element of these theories are that people will be motivated to do things to achieve some goal to the extent that they expect that certain actions on their part will help them achieve the goal, much the same as what martin lather observed centuries ago when he said that “everything that is done in the world is done in hope”
Nweke (1989) sport lighted some of the ingredients of Maslow’s theory of motivation which deals with the self actualization or self fulfillment needs to achieve the potentials within self for maximum self development and creativity and self l expression.
Towing the part of basic needs, Bruce E moon: 1991 accepted basic needs as a developed goal, but commitment to the meeting of basic needs does not entail commitment to any particular strategy for brining it about.
The above theory strives well in a developed and farourable economy but the Nigerian case is a negation and has anchored the strategy for the retired person on the paltry he receives as pension. In full consideration of the situation, Streeten (1981) in his challenges, that “ the measure of a society is the way it treats its poor” sticks a resonant chored even if those threatened by it stop short of subscribing to the “idea that the basic needs of all should be satisfied before the less essential needs of a few”
The present day worker, without mincing words has his or her hope anchored on pension for survival after retirement as much could not be achieved during the working days therefore, the above theories corroborate the fact that most pensioners and even those still in service work and crave for the actualization of what Maslow called the self fulfillment needs and a better ending of their career service or blissful retirement period.
1.8 Definition Of Terms
1. Local government: it means a political authority set by either a national or state governments, as a subordinate authority for the purpose of dispensing or decentralizing political power.
2. Pension: This means a periodical payment made especially by government , company or employer in consideration of the past services rendered by retirees
3. Pension fund: It means money accumulated for the payment of pensions to workers after retirement
4. Pension plan: This is a program established by a company, labour union or other organization that provides income for workers after retirement
5. Pensioner: this is a person who is receiving a pension, especially from the government an old-age pensioner
6. Pension scheme: this is a system in which employee and employe pay regularly into a pension fund while the former is employed
7. Pensionable: it means somebody who has been giving the right to receive a pension : people of pensionable age
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