Description
ABSTRACT
This research work is designed to develop effective strategy for pension
administration in the Nigeria public sector, using pension commission as
a study. The research work reveals how some retirees are forced to
continue to work throughout their life, not out of choice but for lack of
means of sustenance at old age. The sources of data collection for this
work are primary and secondary sources, the researcher in this process of
data collection for the research regarded the questionnaire to serve as the
most important instrument used in the research, and the data gathered
from questionnaire are analyzed by simple percentage, the chi-square
techniques was employed to test the hypothesis and interpret the
information for better understanding. The findings reveal that, a non-
effective and efficient strategy of pension administration can be likened
to poor pension administration and budgeted income to pensioners is not
implemented as at when due. The implication were that, committees
should be set up to audit the performance of pension boards and other
pension bodies and responsibility should be assigned to the right people
who must have access to the right information concerning retires and
also retirees should not solely depend on pension after retirement,
alternate plans should be made from day one of the start of one’s
working years, this could include setting aside a percentage of one’s
salary in anticipation of retirement.
TABLE OF CONTENTS
Title Page i
Approval Page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of content vi
List of table vii
CHAPTER ONE
Introduction 1
Background of the study 1
Statement of the problem 3
Objective of the study 4
Test of Hypotheses 4
Research Questions 5
Significance of the study 5
Scope of the study 7
Limitation of the study 7
Definitions of terms 8
CHAPTER TWO
LITERATURE REVIEW
Introduction 10
Historical Development of Pension Administration and
reform in Nigeria 14
Nigeria Private Sector 17
The Udoji Pension Reforms 19
Survivor Benefits 28
Computation of retirement benefits 31
Factors attributable to poor pension Management in the Nigeria
public Sector 34
Strategies for Effective pension Administration in the Nigeria public
sector 37
The National Pension Commission {PENCOM} 43
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
Introduction 56
Research Design 57
Area of Study 57
Source of Data 58
Population of Study 59
3. 5 Determination of Research Instrument 60
Sampling Procedure 61
Administration of Research Instrument 62
Method of data analysis 62
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
Introduction 63
Data presentation and analysis 63
CHAPTER FIVE
SUMMARY, CONCLUSION, RECOMMENDATION
Summary of Finding 80
Conclusion 84
Recommendations 85
Bibliography 87
Appendix I 89
Appendix ii 90
LIST OF TABLES
Table 4.2.1 Administration and distribution of questionnaire
Table 4.2.2 Age distribution of Respondents
Table 4.2.3 Marital status of Respondents
Table 4.2.4 Position of Respondents
Table 4.2.5 Perception of Respondents as to whether a non-effective
and efficient strategy of pension Administration can be related to
inadequate Accountability of public funds
Table 4.2.6 Perception of Respondents as to whether a budgeted
income to pension are implemented
Table 4.2.7 Perception of Respondents as to the Delay in payment of
pension
Table 4.2.8 Perception of Respondents as to whether there is any
significant effect on pensioners as a result of non-payment of pension
Table 4.2.9 Perception of Respondents as to whether a more and
effective strategy for pension administration can be ensured efficient
Table 4.10 Can non effective and efficient strategy for pension
administration can be due to poor pension Governance?
Table 4.11 is budgeted income to pensioners implemented as at when
due?
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The greatest challenge to government worldwide remains the issue
relating to pension fund management. A financial analyst called Alexandra
Forbes argues
“Pension Management, world over, has become
an increasingly great concern to most government
and countries of the world”.
And coming to Nigeria, the country was guided by a number of pension
regimes prior to the promulgation of the pension Act 2004, pension schemes
in Nigeria had been bedeviled with many pitfalls. The public service
operated an unfounded defined benefit schemes and the payment of
retirement benefits were budgeted annually. The annual budgetary allocation
for pension was often one of the most vulnerable items in budget
implementation in even where budgetary provisions were made, inadequate
and untimely release of fund resulted in delays and accumulation of arrears
of payment of pension rights. It is then obvious that, the defined benefit
scheme could not be sustained.
In the private sector on the other hand, many employees were not
covered by the pension scheme put in place by their employers and many
other schemes were not funded. Besides, where the schemes were funded,
the management of the pension funds was full of malpractices between the
fund management and the trustees of the pension board.
The scenario agitated a re-think of pension administration in Nigeria by the
then President Olusegun Obasanjo`s administration, accordingly, the
administration initiated a pension reform in order to address, eliminate and
eradicate the problems associated with pension reform act 2004.
Good times come and go, retirement is definite, and the question
therefore is “Can people still live a good life after retirement”? The non-
implementation of budgeted income to pensioners, a non-effective strategy
for pension administration is seemingly a growing problem in Nigerian
economy. Some retirees are forced to continue to work throughout their life
not out of choice but for lack of means of sustenance at old age. They are
therefore forced to go in search of menial jobs to make ends meet, since they
are not even sure of getting their pensions.