The study adopted a survey design. To identify the shortcomings in the pension fund administration in Nigeria. Cookie Settings. Many, even with sterling objectives, have failed, and the pension contributions have been increasing, thus it is believed a sound investment and efficient management of the huge pension fund assets may have great impact on the economy. 2, 2004 and enact the Pension Reform Act, 2014 to make provision for the uniform contributory pension scheme for public and private sectors in Nigeria; and for related matters. However, despite the various pension establishments in terms of structure, power, and functions etc. It further points out the specific role labour leadership must play in this regard. The 1951 Pension Ordinance was the first legislative act on pension in Nigeria followed by the establishment of the National Provident Fund (NPF) in 1961 to cater for pension issues in the private sector. Using a desk research design and a time series and cross sectional data that reflects the Nigerian pensions fund contribution, total amount of pensions fund invested in domestic and foreign markets, and the population of the twenty one (21) registered pension fund administrators (PFAs) and pension fund custodians (PFCs) operating in Nigeria, and data collected and presented in tables, it was found that Total pension fund asset in Nigeria increased by 656% with an annual average of 65.6% growth rate indicating a significant growth rate within the period under study. Moreso, lack of reviewing these fees and other charges structure, as well as, the stipulated charges by pension administrators, which of course represented the maximum fee that are charged by the pension operators and sometimes, the non-disclosure of some charges that are not visible, including interests, as well as, commissions that accrued to assets, I mean, pension assets have also remained one of the causes of Nigerias pensioners dissatisfaction. The Nigerian pension administration appears to be filled with irregularity, and the delay in the disbursement of retiree's pension benefits often makes thinking and planning for retirement. +234 1 4626966 (Fax), 2019 Stanley Ogbonna This paper examined the evolution of pension management in Nigeria as a precus to the provision of social security network to the Nigerian labour Market and economic growth. 1. Abstract The attention of the global economy has been drawn to Nigeria since the last 10 years following the coming on board of the Pension Reform Act 2004, with the vigour and commitment it has brought towards improving social security in Africa's most populous black nation. PDF Critical evaluation of Nigeria's Pension Reform Act of 2004: focus on Mediterranean Journal of Social Sciences 4 (2), Fashagba, M. O. +234 9 2340112, Plot 1698 C&D, Oyin Jolayemi Street There were several adjustments in the administration of pension by different regimes to ensure the welfare of her retirees were sustained. The Public Service operated an unfunded Defined Benefits Scheme and the payment of retirement benefits were budgeted annually. Developing Effective Strategy For Pension Administration In The Management: This is the act of putting together of both human and material resources for the attainment of a particular set organizational goal. Well done for this. Academia.edu no longer supports Internet Explorer. National Pension Commission | Regulators of the Nigerian Pension Industry Orifowomo (2006) asserts that insufficient monitoring of pension activities by the regulatory authorities coupled with clear legal and administrative sanctions for erring parties led to poor compliance by stakeholders. Z-test was used to test the hypotheses at 0.05 significance. This has to do with work that you do in other to earn money for a living. To examine the administration of pension and gratuity in Kogi State. Data for the study were secondary sourced from various records of PenCom Annual Reports and CBN Bulletin (database). Management and Administrative Sciences Review ISSN: 2308-1368. As a result, there are little or no RSA balances for a good number of retirees, pending the time, the guaranteed minimum pension would be implemented. +234 70 022 556 25, 5 Globally, the central goal of pension scheme has been to ensure retirees live relatively comfortable lives on exit from service by the optimum management of their pension fund. The impact of pensions and gratuity is almost universal even if an employee received huge sum of money while on active working service yet income received after retirement will decrease depending on the level he/she retired. Your email address will not be published. Pension plays an increasingly important role in the economy of any country because the money earmarked for pension could be used for the establishment of small enterprises and infrastructural development. It, however, had a retroactive effective from 1946 and applied only to Untied Kingdom officials posted to Nigeria. Using a desk research design and a time series and cross sectional data that reflects the Nigerian pensions fund contribution, total amount of pensions fund invested in domestic and foreign markets, and the population of the twenty one (21) registered pension fund administrators (PFAs) and pension fund custodians (PFCs) operating in Nigeria, and data collected and presented in tables, it was found that Total pension fund asset in Nigeria increased by 656% with an annual average of 65.6% growth rate indicating a significant growth rate within the period under study. 121/123 Funsho Williams Avenue The purpose of publishing this material is to alleviate the stress of hopping from one school library to the next in search of research materials. : 13/LAW01/010 COLLEGE OF LAW, AFE BABALOLA UNIVERSITY, ADO-EKITI, EKITI STATE. PDF Pension Administration in The Judiciary; This service is lawful because all educational institutions allow students to read past projects, papers, books, and articles while working on their own. I will be trying as much as possible to explain some of the challenges that undermined effective administration of pension in Nigeria in this article. Labour House This is a detailed report. To discourage frivolous applications and to ensure credibility, such company must have a paid up share capital of N1,000,000,000 and demonstrate professional capacity to manage pension funds and administer retirement benefits (PENCOM, 2005). The Pension System and retirement Planning in Nigeria,. Lagos, Plot 1678, Olakunle Bakare Close, To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. Apart from benefit gotten from tax, there is no other incentive that motivate pensioners to save more money towards their retirement, most importantly, particularly, in the event, where the guaranteed minimum pension is about to be financed by the government. 1st & 4th Floor The government to curtail this decided to reform its pension and changed it from a pay as you go system to contributory scheme. Springer, Cham. +234 9 6720547, Similarly in 1987, the Local Government Staff Pension Board was established to take care of pension matters among local government employees (Sule and Ezugwu, 2006). & Dunmade E. O. The last major change was in 2004 with the enactment of the Pensions Reform Act (PRA 2004), To suggest means of improving the pension and gratuity scheme in Kogi State. The paper is aimed at examining the impact of Nigeria's pension reform on its capital market development from 2004-2008. Furthermore, there were no provisions for individual retirement savings account nor periodic publishing of statement of accounts and returns. The study recommends that pension management should be efficiently improved upon to address the relatively few number of retirement savings account in Nigeria. The study adopted a survey design. The problems included inability to pay retirees pensions on time, decreased revenue base and increasing workforce. Using survey method questionnaires were administered to selected employees; the data collected was analyzed using table of simple percentages and interpretations. Identify the problems encountered and the defects on the system of disbursement of pension and gratuity in Nigeria. iii. Sorry, preview is currently unavailable. Series of pension administration schemes have emerged in Nigeria before and after independence. That is why there is this sense of disenchantment with the little pension benefit received monthly by pensioners, which are being paid under the current CPS in relations to such a huge amount of money gains from returns received from investment and dividends accruing to the Pension Fund Administrator (PFAs) currently. The implication of this finding is that the authorities concerned have not been able to use the pension fund asset and savings mobilized to boost economic growth in Nigeria. Assessment of the Impact of the Contributory Pension in Nigeria Economic Development, Global Journal of Management and Business Research 13 (2), Farayibi, A. ii. PDF Pension Reform Act 2014 and Challenges of Pension Administration in Nigeria The main functions of the PFA are to open Retirement Savings Account (RSA) for employees; invest and manage pension fund assets; payment of retirement benefits and accounting for all transactions relating to the pension funds under their management. It marked a watershed in the annals of pension administration in Nigeria. Challenges that have been faced in the administration of pension in Nigeria, which have beleaguered pensioners in Nigeria from Pay As You Go PAYG, and Defined Beneft Scheme DBS include, Relocate to Canada Today! This research attempted to investigate the effect of new pension reform on the lives of Nigeria retirees. +234 91 393 382 85, No. Opposite Force Headquarters Academia.edu uses cookies to personalize content, tailor ads and improve the user experience. In: Ajayi, R., Fashagba, J.Y. Garki, Abuja, +234 9 7831663 4, ii. Joseph Athanasius is a Content Developer at, This website InfoGuideNigeria.com is maintained by the advertising revenue and we noticed you have ad-blocking enabled. Pension forms part of the social security accorded by a nation or country to its citizens. The Nigerias pensioners indeed expect so much from the pension administrators, and from such expectations, which means that, every gain or return made from investment should be made available to those, who contributed the money, I mean, the employees, since the money belonged to them, with the exception of the other minimal fees and minimal charges expected for the pension administrators. * Poor standard of living, occassined by poverty among pensioners in Nigeria. Pension Management And Administration A Review Of The Pension Reform Subsequently in 1987, the police and other government agencies pension scheme was established under Pension Act No.75 of 1987. (PDF) An Assessment of the Impacts of the Pension System Reforms on Use the document as a reference or structure for your own research paper. However, the attitude of the beneficiaries over long period of time have called researchers attention to point out problem associated with the system of payment and at the same time suggest valuable solutions to the improvement of the system. Prior to the issuance of an operating license, the PFA must be a limited liability company whose sole object is the management of pension fund assets. EFFECT OF PENSION REFORMS ON POVERTY REDUCTION IN NIGERIA, Social Policy and the Retrenchment of Welfare State in Nigeria: Between the Old and New Pension Schemes and Lessons from the Nordic Model, Saving and Consumption Patterns, Implications for
48 Aguiyi Ironsi Street Impact of Taxation on Small Scale Business in a Developing Economy. Politics of Pension Administration in Nigeria. It is a periodic income or annuity payment made at or after retirement to employees who has become eligible for benefits through age, earnings and service. The paper therefore concludes by recommending a more focused engagement strategy by labour leadership and a stricter penalty that makes default in making contributions less attractive. These ideals are aspirations and the nearer a society is to these aspirations, the better the society is. Anozodo R.0 et'al (2014), "The effect of New Pension Pension Scheme on Retirees in Nigeria: 2004-2014," In Review of Public Administration and Management, Vol 3, No.6, pp. As at April 2017, Total Pension asset in Nigeria under the Contributory Pension Scheme stood at N6.4 Trillion, out of this amount, 55.7% were invested in Federal Government of Nigeria Bonds 16.66% on Treasury bills, investment in Domestic shares constitute 7.4%, Foreign Shares represent 1.41%, State Government Securities represent 1.94%, Corpor. These ideals are aspirations and the nearer a society is to these aspirations, the better the society is. Lagos State. * Delayed of pension entitlements and refusal of payment of pension entitlements, as well as, non payment of pension entitlements. The Economics of Pensions, Oxford Review of Economic Policy, 22 (1) pp.15 39, Edogbanya, A. Consequently, the civil service re-organization decree 43 of 1988 had add the modification that officers should now retire from service on attaining the age of 60 years or 35 years of services which ever that come earlier. 1. (PDF) Pension and Gratuity Administration in Nigeria - Projectpapers Enter the email address you signed up with and we'll email you a reset link. (eds) Nigerian Politics. +234 8078450652, Jorg Michael Dostal This paper analyses early results of the 2004 Nigerian pension reform. Victoria Island The research study titled Pension and Gratuity Administration in Nigeria Problems and solution A case study of Kogi State Pension Board, Lokoja, shows the problems of poor and non-implementation of pension and retirement benefits payment for several years and another problem of delay in payment of pension and gratuity. It first spotlighted the grim factors of the old pension system that made reform inevitable. IOSR Journal of Humanities and Social Science, European Journal of Educational Management, international journal of research in computer application & management, EPRA International Journal of Research and Development (IJRD), 2nd International Conference of Faculty of Arts, Kaduna State University, Kaduna Nigeria, Paradigm Academic Press Frontiers in Management Science ISSN 2788-8592 OCT. 2022 VOL.1 NO.2, Oman Chapter of Arabian Journal of Business and Management Review, The Impact of New Pension Reform on The Lives of Nigeria Retirees, A Critique of Pension Reform Act, 2004 In Nigeria, CONTRIBUTORY PENSION SCHEME ON NIGERIA ECONOMIC GROWTH, The Infamy of Pension Funds Administration in Nigeria: Appraising the Economic Potentials, Strategic Management of Pension Scheme in Selected Private Manufacturing Organizations in South Eastern Nigeria, The Nigerian pension system: Reform and expectations, The Nigerian Contributory Pension Market: A Review of Compliance Status across the Federation, Tackling Infrastructural Gap in Nigeria: The Pension Fund Option, PENSION REFORM 2004 TOWARD ASSURED RETIREMENT BENEFIT IN NIGERIA, Determinant of Pension Reform Act of 2014 in Nigeria: A Study of Abuja Workers, Contributory Pension Scheme in the Nigerian Public Service: Benefits and Challenges, Pension Reform in Nigeria: How not to `Learn from Others, Implementation of the 2004 Pension Reform Act in Federal Tertiary Institutions in the South East States, Nigeria, Corporate Governance and Pension Management in Nigeria, The Effect of Safety of Fund and the Pension Reforms of 2014 in Nigeria, The Laws and Administration of Retirement in Nigeria: A Historical Approach, Conceptualizing Contributory Pension Scheme Implementation and Job Commitment of University Lecturers in Nigeria, Effects of Contributory Pension Scheme on Economic Development of Nigeria, Impact of Pension Reform on Nigeria's Capital Market from 2004-2008, Contributors Monitoring of Pension Fund Investment and Prompt Payment of Pension Benefits in University of Ibadan, Nigeria, Pension Reform: An Assessment of Policy Implementation in Kaduna and Niger States Public Service, Nigeria, Payment System under Nigerian Pension Reform Act: An Islamic Overview, Situating Nigeria in the Global Pension Industry, 'The Judicial Service Commission, Independence of Judges and Enforcement of Human Rights in Kenya, An impact assessment of the contributory pension scheme on employee retirement benefits of quoted firms in Nigeria, Evolution of Pension Management in Nigeria and Its Importance to the Economy, PENSION REFORMS ACT 2014 AND THE PROVISION OF INFRASTRUCTURES FOR SUSTAINABLE DEVELOPMENT IN NIGERIA EPRA International Journal of Research and Development (IJRD) Peer Reviewed Journal, Social Policy and the Retrenchment of Welfare State in Nigeria: Between the Old and New Pension Schemes and Lessons from the Nordic Model, Effect of Social Security Scheme on Pensioners Welfare in Abuja Municipal Area Council (AMAC), Social Policy and the Retrenchment of the Welfare State in Nigeria: The Old and New Pension Schemes and Lessons from the Nordic Model, Prospect of Pension Administration in Public Sector of Nigeria, Contributory Pension Fund Assets and Economic Performance of Nigeria, An Assessment of Nigeria's Pension Reform Act 2004, Social Policy and the Retrenchment of Welfare State in Nigeria: Between the Old and New Pension Schemes and Lessons , Contributors Involvement in Pension Fund Investments Decision Making and Retirees Standard of Living in University of Lagos, Nigeria, Pension Reforms Acts (2004) and Life Expectancy of Retirees: Evaluation of Federal Civil Servants in Nigeria, Developing Country Studies Social Policy and the Retrenchment of the Welfare State in Nigeria: The Old and New Pension Schemes and Lessons from the Nordic Model, A Survey On Administrative Efficiency Of Pension Fund Institutions In Nigeria (Evidence from Legacy Pension, Sokoto State), Immiseration of the Nigerian Pensioners the Socio-Economic Implications, Promoting e-governance through public-private partnership: a study of Nigeria's pension administration, Pension Reform Act 2014 and the Future of Pension Administration in Nigeria. This study examined the effect of Contributors monitoring of pension fund investment on prompt payment of pension benefits in University of Ibadan, Nigeria. The research study titled ''Pension and Gratuity Administration in Nigeria Problems and solution'' A case study of Kogi State Pension Board, Lokoja, shows the problems of poor and non-implementation of pension and retirement benefits payment for several years and another problem of delay in payment of .