The Impact Of Pension Administration On Retirees: A Study Of Rivers State Pension Scheme, 2009-2019
Davies Emmanuel Opuene
Department of Political Science, Faculty of Social Sciences, Rivers State University, Nkpolu-Oroworukwo, Port Harcourt.
Lloyd Harry Charity
Department of Political Science, Faculty of Social Science, Rivers State University, Nkpolu-Oroworukwo, Port Harcourt.
Keywords: Contributory Pension Scheme, Public Service Retirees, retirement, Rivers State Government, IMPACT OF PENSION ADMINISTRATION, RIVERS STATE PENSION SCHEME
Abstract
Effective pension administration has been a serious problem in the three tiers of government in Nigeria, even though pension scheme is expected to solve the problems of financial security for the employees and their reliant after retirement from service. This is hampered by the recurring problems of non-payment of pension and gratuity as at and when due. The major objectives the study is to investigate the extent of financial commitment by the Rivers State Government on payment of retirement benefits and also to ascertain the effectiveness of the remittance of monthly deductions from the employees by the Rivers State Ministry of Finance into their respective Retirement Savings Accounts.The research is designed to be descriptive and quantitative. The opinions of 391 respondents (retirees) randomly selected among pension officials and pension staff in the Rivers State Public Service were gathered and it was discovered that poor pension administration and improper implementation of the new pension scheme and negligence of the government in payment of retirement benefits had greatly hampered the success of the Contributory Pension Scheme. The collected data was analysed in statistical tables and charts to test the rate of responses in validity and reliability in t-test. Findings show that the deducted 7.5% from the emoluments of the employees were not regularly remitted into their Retirement Savings Accounts. The insufficient and delayed budgets that plagued the Defined Benefit Scheme is also threatening the Contributory Pension Scheme because of non-compliance on the part of the Government in payments of its contribution and savings in Bond. Two hypotheses were tested using the T-Test probability statistical tool The study concluded that the financial commitment of the government and its due remittance of monthly contributions of pension fund would significantly enhance the wellbeing and living conditions of Public Service retirees in Rivers State. The study therefore, recommended that the Rivers State Pension Board regularly send nominal roll of retirees to the Office of the Governor for proper attention. Also, there should be more compliance on the payment of retirement benefits and Past Service Liabilities Bond to tackle pension matters and regular remittance of deductions.