This project looks into the Retirement policy and problem of implementation in Nigerian public sector. Its aimed at determining the effects of old pension schemes (pay-as-you-go-defined benefits) and they are corruption and inflation, weak institutional capacity and non-compliance of stakeholders which lead to non-implementation of the previous pension scheme, thereby growing rise to the contributory pension scheme (PRA 2004), as a way of strengthening the powers of the operators of the scheme and promoting social investments in the national economy. The survey method was adopted in administering the questionnaires to the staff and retires of Enugu state civil service and the Bourley’s formulae was used to determine the sample size. the retirees complained that they have experience difficulty in claiming their gratuity and pension which have resulted for them not to enjoy their retirement period, due to the challenges facing the defined benefits scheme. The effective implementation of pension reform act (PRA) 2004 would avert the hardship of retirees of Enugu stage civil service after this retirement, thereby forcing them into productive venture after retirement. To quicken the dispensation of the pensioners benefits in term of gratuities and pension, federal government establishes the national pension commission which later licensed on fund administrators (PFAS) and pension fund custodian (PFCS) for effective operations of the scheme. Finally, relevant legal framework should be put in place by the federal government to ensure political economy and necessary support for the scheme by subsequent government, and all hands should be on deck to ensure the success and sustainability of the pension reform act (PRA) 2004.