Thesis Abstract

<p> This research work is designed to develop effective strategy for pension<br>administration in the Nigeria public sector, using pension commission as<br>a study. The research work reveals how some retirees are forced to<br>continue to work throughout their life, not out of choice but for lack of<br>means of sustenance at old age. The sources of data collection for this<br>work are primary and secondary sources, the researcher in this process of<br>data collection for the research regarded the questionnaire to serve as the<br>most important instrument used in the research, and the data gathered<br>from questionnaire are analyzed by simple percentage, the chi-square<br>techniques was employed to test the hypothesis and interpret the<br>information for better understanding. The findings reveal that, a noneffective<br>and efficient strategy of pension administration can be likened<br>to poor pension administration and budgeted income to pensioners is not<br>implemented as at when due. The implication were that, committees<br>should be set up to audit the performance of pension boards and other<br>pension bodies and responsibility should be assigned to the right people<br>who must have access to the right information concerning retires and<br>also retirees should not solely depend on pension after retirement,<br>alternate plans should be made from day one of the start of one’s<br>working years, this could include setting aside a percentage of one’s<br>salary in anticipation of retirement. <br></p>

Thesis Overview

<p> </p><p>1.0INTRODUCTION<br>1.1BACKGROUND OF THE STUDY<br>The greatest challenge to government worldwide remains the issue<br>relating to pension fund management. A financial analyst called Alexandra<br>Forbes argues<br>“Pension Management, world over, has become<br>an increasingly great concern to most government<br>and countries of the world”.<br>And coming to Nigeria, the country was guided by a number of pension<br>regimes prior to the promulgation of the pension Act 2004, pension schemes<br>in Nigeria had been bedeviled with many pitfalls. The public service<br>operated an unfounded defined benefit schemes and the payment of<br>retirement benefits were budgeted annually. The annual budgetary allocation<br>for pension was often one of the most vulnerable items in budget<br>implementation in even where budgetary provisions were made, inadequate<br>and untimely release of fund resulted in delays and accumulation of arrears<br>of payment of pension rights. It is then obvious that, the defined benefit<br>scheme could not be sustained.<br>In the private sector on the other hand, many employees were not<br>covered by the pension scheme put in place by their employers and many<br>other schemes were not funded. Besides, where the schemes were funded,<br>the management of the pension funds was full of malpractices between the<br>fund management and the trustees of the pension board.</p><p>The scenario agitated a re-think of pension administration in Nigeria by the<br>then President Olusegun Obasanjo`s administration, accordingly, the<br>administration initiated a pension reform in order to address, eliminate and<br>eradicate the problems associated with pension reform act 2004.<br>Good times come and go, retirement is definite, and the question<br>therefore is “Can people still live a good life after retirement”? The nonimplementation<br>of budgeted income to pensioners, a non-effective strategy<br>for pension administration is seemingly a growing problem in Nigerian<br>economy. Some retirees are forced to continue to work throughout their life<br>not out of choice but for lack of means of sustenance at old age. They are<br>therefore forced to go in search of menial jobs to make ends meet, since they<br>are not even sure of getting their pensions.<br>Apart from the stress associated with working at old age, how<br>relevant can an individual be at age 70 or 80 in the face of ever changing<br>knowledge brought about by advancement in technology? Besides, of what<br>use is life without rest at old age? Even where one is willing and able to<br>continue working, the opportunity for the elderly to continue working is<br>declining. However, it is against this backgrounds that the researcher wishes<br>to develop effective strategy for pension administration in the Nigeria public<br>sector.<br>1.2 STATEMENT OF THE PROBLEM<br>First comes the layoffs then pay cuts finally a delay in the payments<br>of benefits due to poor policy formulation and implementation, incorrect<br>record keeping and inadequate accountability of public funds. The nonimplementation<br>of budgeted income to pensioners, delay in the payment</p><p>and denial of pension accrued to pensioners leading to pensioners<br>protesting over non-payment of pensions and non-compliance with ethics<br>of public financial management.<br>1.3 OBJECTIVES OF THE STUDY<br>The aims and objectives of the study are to ;-<br>1. To proffer solutions to the problem that brings about a non-effective and<br>efficient management in pension administration.<br>2. To identify measures and steps dealing with the issues of poor<br>implementation of budgeted income to pensioners.<br>3. To examine the quality of personnel in various pension boards.<br>4. To ascertain whether the administration of pension funds are done<br>judiciously.<br>1.4 TEST OF HYPOTHESIS<br>For the purpose of the study, the following hypothesis were put<br>forward;-<br>1. Ho : Non-effective and efficient management cannot be compared to<br>poor pension administration.<br>2. Hi : Non-effective and efficient management can be compared to poor<br>pension administration.<br>Ho : The budgeted income to pension are not implemented as at when<br>due.<br>Hi : The budgeted income are implemented as at when due</p><p>1.5 RESEARCH QUESTIONS<br>1. Can people still live a good life after retirement?<br>2. Why poor policy formation and implementation of pension benefits?<br>3. Does incorrect record keeping and inadequate accountability of public<br>funds case delay pension benefits?<br>4. Does non-implementation of budgeted income to pensioner leading to<br>pensioners protesting over non-payment of pension?<br>5. Does non-compliance with ethics of public financial management cause<br>problem of pension?<br>1.6 SIGNIFICANCE OF THE STUDY<br>Holistic change is required in order to create a framework that will<br>enable consumers have a greater financial security at old age. This study<br>signifies a whole lot; it is intended to find out the intrinsic and extrinsic<br>cause of poor pension administration. The findings will hopefully:<br>1. Assist the researcher that although simple in nature will<br>a. Effect radical improvements in the administration of pension funds<br>b. Deliver significant benefits to all consumers when they retire.<br>2. Serve as a guide to public official in charge of this administration of<br>pension funds to pensioners.<br>3. Assist the governments in setting priorities according to their social<br>fiscal policies.</p><p>4. Enable providers of pension, plans quickly to improve the flexibility<br>and appropriateness of today`s product.<br>However, it is the researcher`s belief that greater attention to ethical<br>and social responsibilities will improve the way pension funds are<br>managed and ministered.<br>1.7 SCOPE OF THE STUDY<br>This project work is concerned with an effective strategy for<br>pension administration in Nigeria public sector. The work will be limited<br>with pension commission (PENCOM) and with other relevant areas<br>such as pension scheme for civil servants, pension governance, Nigeria<br>Social Insurance Trust Fund, Contributory pension scheme.<br>1.8 LIMITATIONS OF THE STUDY<br>1. Developing effective strategy for pension administration in the Nigeria<br>public sector (a study of pension commission) has not been an easy task due<br>to inaccessibility to some relevant materials most managers of government<br>prostrate perceived this research work as adding their companies thereby<br>withholding vital information.<br>Consequently, some staff of the pension bodies was reluctant to discuss the<br>subject freely.<br>2. Time factor is also another problem, which affected the compilation of<br>this work, despite the high scheme in the school; period allocated for the<br>project work must be strictly worked towards.</p><div><div></div></div><br> <br><p></p>