AN ASSESSMENT OF PENSION REFORM AGENDA OF OLUSEGUN OBASANJO ADMINISTRATION 2004 (A STUDY OF FEDERAL MINISTRY OF INTERIOR,) ANAMBRA STATE, NIGERIA

ABSTRACT
The broad objective of the study is to assess the pension reform agenda of Olusegun Obasanjo Administration 2004; a study of Federal Ministry of Interior, Anambra State. The descriptive research method was used in carrying out the study, the method was chosen because it is the method that best interprets the study without loss of facts. The research findings revealed essentially that;
i. Government has not worked out the modalities properly on the separation from the erstwhile old scheme from the new one.
ii. The reform agenda depends on government’s yearly budgetary allocations, which also depends on who is in control of the machinery of government and the revenue condition’s of the Federal government.
iii. The obvious escalating expenditure of government in other areas such as education, agriculture, health and administration that compete with pension expenditure, government can not be trusted to solely pay pension.
Based on the findings, major recommendations are that;
i. Government should try as much as possible to increase her contributory part to fifteen percent(15%), while the employee should contribute five (5%) only, reason been that employees should be assisted in the provision of individual socio-economic needs while in active services.
ii. Various levels of government should be mandated to keep a fixed percentage of their revenue with the Central Bank of Nigeria (CBN) to carter for pension need of their workers as a way of securing the future of the retirees.
iii. Any pension fund administrator, custodian that is found uncomfortable or dubious in his transactions should be blacklisted instantly and pension fund records and funds in his keeping be retrieved and transferred to another custodian or administrator.
iv. Government should mandate all the PFAs to pay interest rates according to all the customers.


CHAPTER ONE 

1.0 INTRODUCTION

1.1        BACKGROUND TO THE STUDY
Prior to the enactment of the Pension Reform Act 2004, pension scheme in Nigeria had been bedeviled by many problems. This scenario necessitated the introduction of a new regime in Nigeria by the administration of President Olusegun Obasanjo. The pension system, unless specially adopted to meet the hardship of time, results in hardship to the family of a white or blue collar worker who dies prematurely in service, or on the verge of retirement or before enjoying the pension benefits for any appreciable period, [Abah, 1999]. However, pension can be classified as contributory and non-contributory pensions. A pension scheme is said to be contributory when both the government and the employee contribute [not necessarily equally] towards its payment. It is non-contributory if the whole amount for its payment is funded by the government or the employer only, (Chukwuemeka, 2008). Factually, the emergency of pension scheme allowed workers to retire and the changing attitudes made it socially acceptable to do so.


The country operated Defined Benefit Scheme (gratuity and pension) between January 1, 1946 and June 2004. Nigeria in 1951, introduced pension benefits into the public sector with effect from 1946, the idea brought about a major attraction for employment in the public service. Nevertheless, the pension Act 102 of 1979 was the main legislation guiding the entire public service. To qualify for pension then, the officer involved must have served for a minimum of 15 years and gratuity period was a minimum of 10 years of service. By 1992, it was reformed to minimum of 10 years for pension and 5 years for gratuity. One notable fact during the period was the pension scheme success recorded by the private sector. Most schemes in the public sector were insured schemes defined by contributions of employees and employers. It provided large sum of retirement benefits or earlier withdrawal. Pension fund managers, portfolio managers, bankers were relevant in pension fund administration in the public sector. Again, decree 77 of 1993 established the Nigeria Social Insurance Trust Fund (NSITF) to replace the old National Pension Fund (NPF) managed by the Federal Government for private sector. Nonetheless, under this scheme, there were poor administration, inadequate delivery system, and lack of adequate records of movement from one employment to the other. Again, the Pension Reform Act was enacted on the 25th June, 2004 and came into effect on 1st July 2004. The Reform established a Defined Contributory (DC) scheme against the former Defined Benefit (DB).

Dike, (2006) stated that, ‘the enactment of the new pension Act 2004 signed into law by President Olusegun Obasanjo on 30th June, 2004 has opened a new vista in the management of pension fund. The present pension scheme regulated by the Pension Commission is public and private sectors driven with government only playing its part by contributing its quota to the relevant pension managers for private and public servants.’

In line with the background information is the issue of pension crisis before....

For more Public Administration Projects Click here
================================================================
Item Type: Postgraduate Material  |  Attribute: 104 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.
================================================================

Share:

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Search for your topic here

See full list of Project Topics under your Department Here!

Featured Post

HOW TO WRITE A RESEARCH HYPOTHESIS

A hypothesis is a description of a pattern in nature or an explanation about some real-world phenomenon that can be tested through observ...

Popular Posts