THE IMPACT OF pension SCHEMES ON NIGERIAN EMPLOYEES
THE IMPACT OF PENSION SCHEMES ON NIGERIAN EMPLOYEES
1.1 Background Of The Research
In traditional Nigerian society, elderly parents look on their offspring for support, which is one reason why the average number of children in Nigerian homes is higher than in more sophisticated countries. As a result, the house serves as the foundation of care for the elderly.
As a result, this arrangement reinstates the role of a pension programme in a less final environment. It would be appropriate at this point to explain what a pension is. A pension is a series of periodical payments made by the government or a former employer to a person who has reached the end of his normal working life.
At its most basic, it provides a source of income during retirement. Such an income will help the retired person to survive, and depending on the amount and other resources he has, it may also allow him to continue enjoying some of the luxuries he could afford during his working life.
As previously said, it is now clear that traditional Nigerian culture simply substitutes the vast extended family as a pension programme. Every provision necessary by the retired for his/her upkeep till death is made collectively by members of the family.
This method, of course, is primitive and ineffective, as evidenced by the following: Assuming the retired has an ailment, this would entail double trouble for the supporting family, and where the loss was accidental, image the anguish of such a retiree and dependents.
To avoid getting too far into that, we will now look at the history of the pension programme itself. As a result, pension dates back to the twelfth century, and at the time, protection from adversity was provided exclusively through local manors or boroughs, and guilds administered aid within the bounds of the community.
However, it was only recognised as a relief for the elderly and destitute at the time, and not as a benefit for service done during one's working days. These guilds were formed on religious or benevolent grounds, and as time passed, merchants and craft guilds were formed as well.
As a strong central government evolved, caring for the poor became a national matter rather than a local one, and legislation concerning the poor became more widespread.
As time passed, the occupational pension scheme was developed, which established a right to a pension as a result of previous employment, and here is where we are mainly concerned in this research endeavour.
In general, pension schemes have little relevance for workers in nigeria, much alone their utility. It has yet to bear its full burden on the Nigerian people because all they see and know about it is some form of income that one is supposed to be entitled to after retirement but never receives.
This is the current state of mind of the average Nigerian worker on pensions, which is pitiful. What is the root of this problem? How do we go about fixing the system? All of these and other questions will allow us to clarify the current situation of pension systems in Nigeria, using Enugu state as a case study.
Many Nigerian workers who retire from active service, whether voluntary or otherwise, are unaware of the pension entitlements to which they are entitled. Where there is awareness, those in authority are seen to be up to something or the other in order to delay the start and safety of the retiring employee's pension.
Experts in Nigeria agree that because most workers get depressed and worn-out after retirement, many of them (workers) look forward to their retirement era with hope.
While retired federal officials may be slightly better off because they are entitled to monthly stipends in lieu of pensions, their private sector counterparts are not so fortunate. They receive it in bulk at the time of retirement and no more.
As a result, it becomes difficult for them to plan and carry out their commitments, which they continue to carry regardless of their new position as retried workers. Another area that this research would look into is the reasons given for the delays in payment of gratuities and pensions, which range from structural flaws in payment arrangements due to bureaucracy, to fraud and mismanagement of pension funds, despite the Nigerian constitution's protection of pensioners.
“The right to a pension in all federation public service to receive a pension or gratuity shall be regulated by law.” Any benefit to which a person is entitled shall not be withheld to his detriment; however, there is emphasis on when payments should be made and penalties for late payment.
This research will be conducted against this backdrop, and recommendations will be made to alleviate the current depressing condition in Nigerian pension schemes.
1.2 Statement Of The Problem
Life is divided into stages, and retirement is one of them. However, the way one enters and controls a phase impacts both the outcome and the longevity of that phase. In this area of the world, retirement is defined as a period of relaxation from active service.
To some retirees, retirement is a time to rest, to others, it is a time to stop working, to still others, it is a time to prepare for death, and to yet others, it is a time to contribute meaningfully to some aspects of their lives and the lives of others. Whatever perspective you take on retirement, the end result is that it refers to persons who have served in some manner or another during their productive lives.
Retirement, on the other hand, is accompanied by a type of recompense known as a pension. This pension is not a gift to the retiree; rather, it is his right and must be honoured. However, in Nigeria, men and women who have served this country in one form or another cry for their entitlement, which is frequently delayed or even rejected.
It is ludicrous to remark here that the pensioners' lack of pension has contributed to their premature death. Some have become agents of doom because their entitlements have not been granted to them. While others have simply groaned and regretted ever meritoriously serving.
It is prudent to declare unequivocally that the government is also attempting to remedy these faults in the system and has enlisted the assistance of several business groups. The goal of this study is to evaluate the Nigerian pension programme in order to understand its consequences on Nigerian workers. How has the scheme benefited Nigerian employees thus far?
1.3 Objective Of The Study
The following are the aims of the study:
To assess the impact of the pension programme on Nigerian workers.
To ascertain the difficulties associated with pension administration in Nigeria.
To make recommendations for efficient pension programme administration.
1.4 Research Problem
Has the Nigerian pension programme benefited the Nigerian worker?
What are the issues of Nigeria's pension scheme?
What are the most efficient methods of pension administration in Nigeria?
1.5 Research Theories
H0: The pension programme has had no meaningful impact on Nigerian workers.
H1: The Pension Scheme has had a huge impact on Nigerian workers.
H20: The Nigeria pension programme faces no substantial issues.
H21: The Nigerian pension programme faces considerable issues.
1.6 Significance Of The Study
This study's importance or import is such that it would be a valuable parameter in the following ways:
Reward for devoted devotion
Increase organisational efficiency by allowing older staff to retire without worry of poverty or wretchedness.
Assist employers in attracting and retaining the correct types of employees.
Encourage a positive employer-employee connection.
The study will also be of great benefit to the following groups:
Labour Slate Employers and Local Government Authorities
The Nigerian Social Insurance Trust Fund's management and staff
Insurance and brokerage firms owned by the federal government
1.7 Benefits And Limitations Of The Study
The scope of this study will be limited to Enugu State and will focus on two public limited businesses, Nigerian Railway Corporation (NRC) and Nigerian National Petroleum Corporation (NNPC), with a particular emphasis on Nigerian National Petroleum Corporation (NNPC).
The findings of this study are expected to provide significant insight for a possible re-valuation of not only the target companies, but also other companies that administer pension schemes.
The incessant disruption of academic would not encourage one to carry on with school chores, and finally, when academic finally began, only a short period was set aside before examinations would begin, with the current economic for more than 5 years.
1.8 Definition of Terms
A pension is a form of retirement plan that pays out monthly income in retirement. While you are working, your company contributes money to your pension plan. After you reach a certain retirement age, the money will be paid to you, usually as a monthly cheque in retirement.
Employees: A person who works part-time or full-time under an employment contract, whether oral or written, express or implied, and who has recognised rights and duties. Also known as a labourer.
Pay, salary, or wage as a kind of remuneration for employment, includes allowances, benefits (such as a company car, medical plan, or pension plan), bonuses, cash incentives, and the monetary worth of noncash incentives.
1.9 Research Organisation
The research is organised into five chapters. The first chapter introduces the study and provides background information. The second chapter examines connected and pertinent literature.
The research technique is presented in chapter three, and the data analysis and interpretation are presented in chapter four. The study comes to a close with Chapter 5, which covers the summary, conclusion, and suggestion.