AN ASSESSMENT OF CONTRIBUTORY PENSION REFORM IN NIGERIA

Abstract

This paper appraised the level of success achieved in the implementation exercise of 2004 Pension Reform Act in selected Federal Universities in Southwesthern Nigeria. The study utilized both primary and secondary data. In Obafemi Awolowo University, Ile-Ife, stratified random sampling technique was used to select 403 respondents out of 4027, consisting of 1372 academic and 2655 non-academic staff, with a sample fraction of ten percent (10%);  In Federal University of Technology, Akure, in the same way as OAU, Ile-Ife, 186 respondents out of a total of 1862, consisting of 555 academic and 638 non-academic with a sample fraction of ten percent (10%) was chosen using academic and non-academic classifications for stratification.  Questionnaires and interviews were used to collect primary data from four hundred and four (404) respondents randomly selected in the study areas. The study found that the Government and the Pension Fund Administrators have not been effective enough in the administration of pension reform act 2004, and there are still recorded delay in payment of entitlement to Pensioners in the selected institutions owing to some problems stemmed from the need to present and secure approval for Budgets from the Federal Ministry of Finance, and need to seek confirmation and re-confirmation by the Pension Fund Administrators from the National Pension Commission, Abuja before payment of entitlements are executed. The paper concludes that the government should ensure proper implementation of the Pension Reform Act 2004 with regards to retirement policies and effective management of pension funds.  There should in addition be a synergy between all sections in the National Pension Commission such that error of over remittance of contribution into Retirement Savings Account, which when discovered always stalls prompt payment of retirement benefit to retirees.