Pension Reform Act 2004: An Overview

Abstract

Problem statement: The study critically analyzed the impact of the current pension reform scheme in the public service in Nigeria. Approach: The study revealed the public concern over pension matters and focused on ways to improve quality of life after service and how to increase life expectancy of pensioners in Nigeria. Results: The urgent need of reform necessitated the carrying out of this research, due to the fact that public sector organization at both the federal, state and local government levels have woefully failed to meet their pension liabilities thereby groaning under the heavy burden of paying the retirement benefits of retirees. The scourge of "ghost pensioners, has further aggravated the lingering pension crisis. The analytical tool used, was chi-square in which expected frequency tables were computed. The findings of the study revealed that, a pensioner under former policy of pension scheme (defined benefit scheme) has suffered neglect in receiving their gratuities and pensions. Many pensioners gave off the ghost before they could access reasonable percentage of their pension benefits. Conclusion/Recommendations: The study recommended the use of a uniform pension scheme for both the public and the private sectors and that retirement benefits should be funded by both the employer and the employee. Also, strict regulation of the activities of pension fund Administrators and National pension commission is to be established and charge with the responsibility for the regulation, supervision and effective administration of all pension matters in Nigeria.