Challenges Faced by Retirees in Accessing Pension Funds
CHAPTER ONE
OBJECTIVES OF THE STUDY
The general objective of this study is to examine the challenges faced by retirees in accessing pension funds in Ogun state, a case study of Abeokuta south LGA. The specific objectives include the following:
- To find out if retirees in Abeokuta south LGA have issues in accessing their pension funds.
- To ascertain the roles of the government in the challenges faced by retirees in accessing pension funds in Abeokuta south LGA.
- To determine the level of funding of contributory pension scheme significantly affected the payment of retirement benefits in Abeokuta south LGA.
- To examine the extent to which compliance with the Contributory Pension Scheme law affects the payment of retirement benefits in Abeokuta south LGA.
- To investigate the influence of corruption on the challenges faced by retirees in accessing pension funds in Abeokuta south LGA.
CHAPTER TWO
LITERATURE REVIEW AND THEORETICAL FRAMEWORK
Literature Review
Administration of Pension Scheme
For betterand in-depth understanding of “Administration of pension Scheme”, it is imperative to first of all look at the concepts of “Administration” and “Pension Scheme” separately before synthesizing it. Administration according to John (1960) in Paul (2013) is the determined action taken in pursuit of conscious purposes. It is the systematic ordering of affairs and the calculated uses of resources, aimed at making those things happen which we want to happen, and at the same time preventing developments that fail to square with our intentions.On the other hand, Pension scheme according to Tijjani(2007) can be seen as government plan or program in form of policy through which retirees or somebody else pays regular amount of money to enhance the state of his welfare.
Based on the scholar‟s definition above, when the administration failed to achieve those things we want to happen, and prevent those things we don‟t want to happen to happen, then the administration has failed. For example, if the administration of pension and gratuity in Adamawa State pension Board failed to provide welfare for the retirees in the State and did not prevent delay, under payment and the stoppage of the payment of pension and gratuity that fails to square with the intention of the pension administration, then the administration has failed. Indeed, the view of John (1960) in Paul (2013) seems to be a starry in this study, although his idea is not without weaknesses. For example, the scholar failed to recognize the fact that… “systematic ordering of affairs and resources to achieve those things that we want and preventing those things that fail to square with our intention” cannot be possible without effectiveness or well trained personnel. The glory of human resources in an organization, particularly in the area of administration is the man power that will enhance efficiency and effective performance that will lead to the achievement of the predetermined objective. Not only otherwise as in the view of the scholar.
However, when we harmonize the views of john (1960) and Tijjani (200) above, and the two concepts are being synthesized, we can say administration of pension scheme is a deliberate combination of material, financial and skilled human resources channeling toward the achievement of government policy or program aiming at providing the retirees or pensioners with the means of livelihood after leaving the service of his/her employer to boost his/her welfare.
In Nigeria, several pension schemes have been adopted and administered before the resent or new contributory scheme Act 2004 came up since independence. For example, Balogun (2006) as documented in Fapohunda (2013), affirms that Nigeria’s first ever legislative instrument on pension matters was the Pension Ordinance of 1951 which took effect retroactively from 1st January, 1946. The National Provident Fund (NPF) Scheme was established in 1961 by an Act of Parliament to provide income loss protection for employees as required by the International Labour Organization (ILO) Social Security (Minimum Standards) Convention 102 of 1952. The NPF scheme however covered only employees in the private sectors, and the monthly contribution was 6% of basic salary, subject to a maximum of N8.00 to be contributed in equal proportion of N4.00 each by the employer and the employee. The NPF scheme was later converted to a limited social insurance scheme established by Decree No. 73 of 1993 and administered by the Nigeria Social Insurance Trust Fund (NSITF).
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
In this chapter, we would describe how the study was carried out.
Research design
It is a term used to describe a number of decisions which need to be taken regarding the collection of data before they are collected. (Nwana, 1981). It provides guidelines which direct the researcher towards solving the research problem and may vary depending on the nature of the problem being studied. According to Okaja ( 2003, p. 2),” research design means the structuring of investigation aimed at identifying variables and their relationship, it is used for the purpose of obtaining data to enable the investigator test hypothesis or answer research question by providing procedural outline for conducting research”. It is therefore, an outline or scheme that serves as a useful guide to the researcher in his efforts to generate data for his study. The research therefore, adopted the survey method in data collection. It is used to obtain the peoples opinion through questionnaire.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
Introduction
This chapter presents and analyses the major findings from the study. The analysis, discussion and interpretation of the data collected are very important as they help to answer the research questions and verify their validity. As argued by Meda (2011), once the questionnaires or other measuring instruments have been administered, the mass of raw data collected must be systematically analyzed, discussed and interpreted in a manner that bring meaningful information required by the researcher from the study undertaken. It is from the result of such analysis and discussion that the researcher is able to present the meaningful findings.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Introduction
This study assesses challenges faced by retirees in accessing Pension fund in Nigeria: It was conducted in Abeokuta South LGA. More specifically, it examined procedures followed in processing Pension Benefits in PSPF and challenges faced by retirees when accessing pension benefits from social security funds. Finally, it assessed the impact of these challenges to the retirees and other stakeholders. This chapter presents the summary of the findings and conclusions, recommendations and areas for future research.
Summary of Findings
Procedures Followed in Processing Pension Benefits
In general, key-findings of this study revealed that, in Nigeria, for a long time, the social security sector lacked co-ordination at national level as each Fund reported to different Ministries with differing operational rules and procedures. As regards PSPF, there are procedures that have to be followed before one gives notification to employer six months before receives retirement benefits. As regarding, retirement benefits, a lump sum is given once after the retirement and the second part of the pension is received by the retiree after every one month.
Challenges Faced By Pensioners in Accessing Pension Benefits
The study revealed that the considerable challenges face Nigeria public pension system. Most of the complaints revolve around the inadequacy of benefits, delays in payments, lack of update information about the schemes and the amount of individual contributions made and estimated benefits statements. Also, contribution records are sometimes incomplete.
Impact of the Social Security Fund Challenges to the Retirees and other Stakeholders
The findings showed that because of the social security fund challenges, many teachers are virtually forced to live very precarious lives and they cannot meet their basic needs due to the delays in pensions and shall decrease in household incomes. Some of the teachers retired twelve months ago, but they are yet to receive their pension. Two thirds of the respondents said that they approached retirement with shock, psychological distress and disbelief considering themselves as not yet ready to let go of what was an important part of their lives i.e. their jobs. Retirement presents most retirees with a substantial sense of loss. Some of the respondents found themselves in psychological distress as they were financially deprived while they were still having financial responsibilities such as paying school fees for their children or taking care of other members of the family while they had meager pension.
Conclusion
Following these findings, it can be concluded that PSPF uses several operational rules and procedures that are followed before one gives notification to employer six months before retiring and receiving retirement benefits. As regards, retirement benefits, a lump sum is given once after retirement and the second part of the pension is received after every one month. Considerable challenges face Nigeria public pension system including complaints of inadequacy of benefits, delays in payments, to mention just a few. Due to the social security fund challenges, many teachers cannot meet their basic needs because they are financially deprived while they are still having financial responsibility such as paying school fees for their children or taking care of other members of the family while they had meager pension.
Recommendation
Sustainability of the Computerized Projects for Record-Keeping
PSPF should ensure the sustainability of the use of computerized systems to easily track, identify, capture, processing members’ payment and keep members records.
Overcoming Challenges
Although there are several challenges facing the Fund and the customers, PSPF should turn those challenges into business opportunities and develop strategies to overcome them and render better services to the members.
Policies and Regulatory Frameworks
PSPF should develop and review on regular basic various policies, rules, regulations and standards governing the Fund. (d) Awareness creation
For the purpose of creating more awareness and a wider acceptability of the Scheme, the Fund should continue to provide education to the general public on the importance of social security and the advantages of being a member of PSPF.
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