Page Length: 68

Size: 95 KB

Format: PDF & Word



This study examines the effect the effect pension reform 2004 on the public servants. A descriptive research design otherwise known as survey research design  was employed in the course of the study. The study used a sample size of 368 which was gotten from a population of 4,585 with the use of Taro Yamane formula.  Multiple regression analysis was used in analysing the data collected from the field and result were comparing to 0.05% to determine the level of significance. Finding shows that  pension reform of 2004 have positive effect on  public servants and that the reform have  to a degree corrected some of the crises  facing  Nigeria pension commission board of Nigeria. It is recommended in the study that every public servant who is actively serving should endeavour to contribute to their pension contribution scheme in order to achieve good standard of living during retirement. Government should also look into the scheme to see areas to improve pension scheme the more and each person embarking on pension scheme should choose adequate pension plan which will be of benefit to him /her at retirement.




1.1Background Of The Study

The purpose of occupational pension scheme is to provide employees regular and stable income after their retirement from service. It is an arrangement an employer or a group of employers use(s) to provide pension (and sometimes other) benefits for their employees when

they leave or retire . They also provide benefits to the employee’s dependant if the employee dies. This scheme is usually y funded by contributions from just the employer, or from both the employer and the employee. A good pension scheme does not only serve as all incentive to employees but 11elps to attract and retain experienced staff. According to Dike (2006) the main objective of pension fund is to provide an employee at the date of his  retirement a lump sum or a stream of payment that will ensure that the retiree’s standard of living after retirement is not much different from what is obtained in the period immediately preceding his retirement.

The first pension legislation in Nigeria was enacted in 1951 by the British colonial administration. referred to as the Pension Ordinance, with retrospective effect from 1st January, 1946. The pension which was initially designed for colonial officers who were moved from post to post in the British Empire was to ensure their continuity of’ service where ever and whenever they were deployed to serve the colonial administration. When the law eventually became applicable le to Nigerians, the application was at the discretion of the Governor General. Pension was therefore not a right for Nigerians under the Ordinance. To redress this, a new  Pensions Act was enacted in 1979 referred to as the Pensions Act No. 102 of 1979: retroactively  effective  from 1st April. 1974. The Act consolidated all enactments on pensions and incorporated pensions and gratuity scales designed  for public officers by the Udoji Public Service Review Commission in 1974. It also became the basic pension law from which other pensions laws in Nigeria emerged.

The greatest challenge to government worldwide remains the issue relating to pension fund management. A financial analyst called Alexandra Forbes argues “Pension Management,

world over has become all increasing]) great concern lo most government and countries of the world “. Coming to Nigeria, the country was guided by a number of pension regimes prior to the promulgation of the pension Act 2004, pension schemes in Nigeria had been bedevilled with many pitfalls. The public service operated an unfounded defined benefit schemes and the payment of  retirement benefits were budgeted annually. The annual budgetary allocation for pension was often one of the most vulnerable items in budget implementation in even where budgetary provisions were made, inadequate and untimely release of fund resulted in de lays and accumulation of arrears of payment of pens ion rights. It is then obvious that, 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 other schemes were not funded. Beside where the schemes were funded, the management of the pension funds was full of malpractices between the fund management and the trustees of the pension board. The scenario agitated a re-thin k of pens ion administration in Nigeria by the then President OlusegunObasanjo’s administration, accordingly, the administration initiated a pension reform in order to address, eliminate and eradicate the problems associated with pension reform act 2004.Good times come and go, retirement is definite, and the question the re fore is “Can people still live a good life after retirement”? The non- implementation of budgeted income to pensioners, a non-effective strategy for pension administration is seemingly a growing problem in Nigerian economy. Some retirees are forced to continue to work throughout their life not out of choice but for lack of means of sustenance at old age. They are therefore forced to go in search of menial .jobs to make ends meet, since they are not even sure of getting their pensions.

A part from the stress associated with working at old age, how relevant call an individual be at age 70 or 80 in the face of ever changing knowledge brought about by advancement in techno logy” Besides, of what use is life without rest at old age? Even where one is willing and able to continue working, the opportunity for the elderly to continue working is declining. However, it is against this backgrounds that the researcher wishes examine the effect of 2004 pension reform on  public  servants.

1.2 Statement of the Problem

The delay in the payments of benefits due to poor policy form at ion and implementation, in correct record keeping and inadequate accountability of public funds.The non- implementation of budgeted income to pensioners.delay in the payment and denial of pension accrued to and denial of pension accrued to pensioners leading to pensioners protesting over non-payment of pensions and noncompliance with ethics of public financial management are problem which are encountered in pension Administrative system in Nigeria.  Due to this ugly occurrences the 2004 pension reform  was  done in other to  eliminate this problem. It on this note that the study tends to examine the effect of 2004 pension reform on public servants.



1.3 Objectives of The Study

The main objective of the study is to investigate   the various ways which 2004 pension reform act have  effect on  public servants. Other specific objective is to examine

  1. To investigate the extent both those who worked in public and private sector receives their pension retirement benefit as at when due.
  2. The extent pension reform 2004 assist individual to ensure that they save in order to cater for their livelihood during old age.
  3. The extent pension reform 2004 establish a uniform set  of rules, regulations and  standards for the administration and payment of retirement benefits for both those in private and public sector .

 1.4 Research Question

  1. To what extent do both those who worked in public and private sector receives their pension retirement benefit as at when due?
  2. To what extent do pension reform 2004 assist individual to ensure that they save in order to cater for their livelihood during old age?
  3. To what extent pension reform 2004 establish a uniform set  of rules, regulations and  standards for the administration and payment of retirement benefits for both those in private and public sector ?

1.5 Research Hypotheses

Each of the hypotheses is designed to test the responses of the respondents as follows:

H01:. Both those who worked in public and private   sector significantly do not receives their pension retirement benefit as at when due?

H02: Pension reform 2004 do not significantly assist individual to ensure that they save in order to cater for their livelihood during old age.

H03: Pension reform 2004 established uniform set of rules, regulations and standards do not significantly ensure the administration and payment of retirement benefits for both those in private and public sector.

1.6 Significance Of The Study

The study is significant since it will outline different factors that can influence effective pension scheme in Nigeria and at the same time highlight various ways of developing and enhancing pension scheme. The study will also be of benefit to both retired public servant and public servant who are still serving. For the active and serving public servant it will be of benefit in encouraging them to contribute to pension scheme and enjoy it dividend after retirement while to the retired public servant it enable them to still hope on the scheme knowing that pension  scheme can enhance the standard of living after retirement.

The study  outline various  reasons for 2004 pension reform and how this reform can be of benefit to public servants after retirement. It also examines the relationship which exist between the objective If pension scheme and welfare of retired staff of public servants and the extent to which an effective pension scheme can be of help to retired staff and to those yet to be retired. The research will also be of importance to fellow researchers as it will serve as a source of information and reference to researchers and at the same time add to existing knowledge. It will be of help to Nigeria pension commission board in order to fully understand the need of fully implementing 2004 pension reform policies.

  1. 7 Scope of The Study

The scope of the study will be covering an effect of 2004 pension reform on public servant in

Nigeria public sector. On the other hand, it will also be limited to pension commission (PENCOM) and with other relevant areas such as pension scheme for civil servants, pension governance. Nigeria Social Insurance Trust Fund, Contributory pension scheme.

1.8 Definition of Term

  • Pension: is a fixed sum paid regularly to a person, typically given retirement from service.
  • PensionFund: Is any plan fund or scheme which provides retirement income. Pension should not be confused with severance pay; the former is made in regular instalments while the later is paid in one lump sum.
  • Retiree: Is one who has retired from active working life retirees receive pension
  • Gratuity: is money given to an employee in return for service(s) at retirement.
  • Lump Sum: Is a single payment for a number of separate items, money paid in full rather than in several smaller amounts.
  • Annuity: This refers to any terminating stream of fixed payments over a specified period of time.
  • Pension Administration: this is a term that is used for management or pens ion funds and fairs.
  • Pre-Requisite: is a thing required as a condition for some other things to happen or exist.
  • Public Sector: is the pan of an economy concerned with providing basis government services. These include services such as Police, Hospitals. Schools. Military and Public transport.




DISCLAIMER: All project works, files and documents posted on this website, are the property/copyright of their respective owners. They are for research reference/guidance purposes only and some of the works may be crowd-sourced. Please don’t submit someone’s work as your own to avoid plagiarism and its consequences. Use it as a reference/citation/guidance purpose only and not copy the work word for word (verbatim). The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own study. is a repository of research works where works are uploaded for research guidance. Our aim of providing this work is to help you eradicate the stress of going from one school library to another in search of research materials. This is a legal service because all tertiary institutions permit their students to read previous works, projects, books, articles, journals or papers while developing their own works. This is where the need for literature review comes in. “What a good artist understands is that nothing comes from nowhere. The paid subscription on is a means by which the website is maintained to support Open Education. If you see your work posted here by any means, and you want it to be removed/credited, please contact us with the web address link to the work. We will reply to and honour every request. Please notice it may take up to 24 – 48 hours to process your request.

WeCreativez WhatsApp Support
Administrator (Online)
Hello and welcome. I am online and ready to help you via WhatsApp chat. Let me know if you need my assistance.