Developing Effective Strategy For Pension Administration In The Nigerian Public Sector

DEVELOPING EFFECTIVE STRATEGY FOR PENSION ADMINISTRATION IN THE NIGERIAN PUBLIC SECTOR

Pension Administration

 CHAPTER ONE

 1.0 INTRODUCTION

 1.1 BACKGROUND OF THE STUDY

And coming to Nigeria, the country was guided by a number of pensionregimes prior to the promulgation of the pension Act 2004, pensionschemes in Nigeria had been bedeviled with many pitfalls. The publicservice operated an unfounded defined benefit schemes and the paymentof retirement benefits were budgeted annually. The annual budgetaryallocation for pension was often one of the most vulnerable items in budgetimplementation in even where budgetary provisions were made,inadequate and untimely release of fund resulted in delays andaccumulation of arrears of payment of pension rights. It is then obviousthat, 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 otherschemes were not funded. Besides, where the schemes were funded, themanagement of the pension funds was full of malpractices between thefund management and the trustees of the pension board.
The scenario agitated a re-think of pension administration in Nigeria bythe then President Olusegun Obasanjo`s administration, accordingly, theadministration initiated a pension reform in order to address, eliminateand eradicate the problems associated with pension reform act 2004.Good times come and go, retirement is definite, and the question thereforeis “Can people still live a good life after retirement”? The non-implementation of budgeted income to pensioners, a non-effective strategyfor pension administration is seemingly a growing problem in Nigerianeconomy. Some retirees are forced to continue to work throughout their lifenot out of choice but for lack of means of sustenance at old age.
They aretherefore forced to go in search of menial jobs to make ends meet, sincethey are not even sure of getting their pensions.Apart from the stress associated with working at old age, how relevant canan individual be at age 70 or 80 in the face of ever changing knowledge brought about by advancement in technology? Besides, of what use is lifewithout rest at old age? Even where one is willing and able to continueworking, the opportunity for the elderly to continue working is declining.However, it is against this backgrounds that the researcher wishes todevelop effective strategy for pension administration in the Nigeria publicsector

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