EVALUATING PENSION FUND ADMINISTRATION IN NIGERIA

Adeyemo akin 36 PAGES (13485 WORDS) Accounting Project

ABSTRACT

The study was carried out to examine the relationship between government pension officers and pension fund administration in Nigeria, examine the effect of budget allocation and pension fund administration in Nigeria pensioners and also to examine the effect of pensioners’ education in pension fund administration in Nigeria. The study adopted the descriptive design and was guided through a self-structured questionnaire administered to 50 pension officers Ekiti. Findings from the study revealed that the government pension officers are not well equipped to properly administer pension fund. The nigerian budget allocation scheme needs to be overhauled to favour pensioners. Budget allocation and pension fund administration has no effect on Nigeria pensioners. Pensioners’ education will have a positive effect on pension fund administration in Nigeria. The study recommends that the government should continue to give adequate analysis to the function of pension scheme adopted and accord it the pride of place in the system. Employee should be recognised and motivated to see their ability and capability as important either towards the future of the organisation or individual life after meritorious service. The structure of the pension package means a lot to the workforce; hence organization should embark on an effective comparative analysis of its pension style before determining how its employees could be compensated. This will help the organisation to retain and attract competent employees and reduce wastage. The contributory pension scheme should be encouraged by its practitioners inform of provision of adequate means of sensitization or interactions such as seminars to continually update organisations and employees’ on the benefits of new scheme and its importance on life after retirement. Regulators of the contributory pension scheme should at interval inspect the operators on prompt payment of retirement benefits to retirees to avoid frivolous deals and where found otherwise, sanction should be desirable to shield competency of the scheme.




TABLE OF CONTENTS

Title                                                                                                        Page

TITLE PAGE                                                                                             i

CERTIFICATION                                                                                                ii

DEDICATION                                                                                           iii

ACKNOWLEDGMENT                                                                                      iv

ABSTRACT                                                                                               vi

TABLE OF CONTENTS                                                                                     vii

CHAPTER ONE: INTRODUCTION

1.1       Background to the Study                                                                                           1

1.2       Statement of the Problem                                                                                           3

1.3       Research Questions                                                                                                     4

1.4       Objectives of the Study                                                                                              4

1.5       Test of Hypotheses                                                                                                     5

1.6       Significance of the Study                                                                                           5

1.7       Scope of the Study                                                                                                     5

1.8       Operational Definition of Terms                                                                                 6

CHAPTER TWO: LITERATURE REVIEW

2.1       Conceptual Classifications                                                                                          8

2.1.1    Pension                                                                                                                        8

2.1.2    Overview of the Pension Reform Act                                                                                    11

2.1.3    Sources of Pension Funds                                                                                           12

2.1.4    Pension Administration in Nigeria                                                                              12

2.1.5    Factors Attributable to Poor Pension Management in the Nigerian Public Sector     13

2.1.6    Strategies for Effective Pension Administration in the Nigeria Public Sector           15

2.1.7    Audit Queries                                                                                                                         18

2.1.8    The National Pension Commission (PENCOM)                                                         19

2.1.9    Contributory Pension Scheme                                                                                    19

2.1.10  Differences Between the New Scheme and Previous Pension Arrangement             21

2.2       Theoretical Review                                                                                                     22

2.2.1    Productivity theories of pension                                                                                 22

2.2.2    Theory of Life Cycle                                                                                                  23

2.3       Empirical Review                                                                                                        23

2.3.1    Empirical Evidences from Developed Countries                                                        23

2.3.2    Empirical Evidences from Developing Countries                                                       28

2.3.3    Empirical Evidence from Nigeria                                                                               32

CHAPTER THREE: RESEARCH METHODS

3.1       The Area of the Study                                                                                                39

3.2       Research Design                                                                                                         39

3.3       Source of Data                                                                                                            40

3.4       Population of the Study                                                                                              40

3.5       Sampling Method                                                                                                       40

3.6       Method of Data Analysis                                                                                           41

3.7       Model Specification                                                                                                    41

3.7.1    Test of Significance of Parameter Estimates                                                              42

3.8       Apriori Expectation                                                                                                    43

CHAPTER FOUR: PRESENTATION OF DATA ANALYSIS AND DISCUSSION

4.1       Evaluation Based on Statistical Criteria                                                                     45          

4.2       The Student T-Test                                                                                                     45

4.3       Evaluation Based on Econometric Criteria                                                                 46

4.4       Tests for Autocorrelation                                                                                            47

4.5       Evaluation of Working Hypothesis                                                                            47

4.6       Discussion of Findings                                                                                               48

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Summary                                                                                                                     49

5.2       Conclusion                                                                                                                  49

5.3       Recommendations                                                                                                      50

BIBLIOGRAPHY                                                                                                                52

APPENDIX                                                                                                                           55