THE ROLE OF PENSION FUND ADMINISTRATION UNDER THE NEW PENSION SCHEME OF 2004 AND ITS CONTRIBUTION TO THE NIGERIA ECONOMY

Description

1.1BACKGROUND OF THE STUDY

Pension scheme was introduced into Nigeria during the colonial era to provide old age, income and security to British citizens working in the country upon retirement.

Nigeria fist ever legislation on pension matters was the pension ordinance of 1951, which had national provident fund NPF Scheme established in 1961 was followed 18 years later by pension Act No 102 of 1979 prior to the pension Reform Act PRA 2004, most public organization operated a defined benefit PayAsYouGo scheme final entitlements were based on length of service and terminal evolvements.

The defined benefits DB scheme was funded by federal government through allocation and administration by pension department of the office head of service federation.

However, because of the inadequacy of the above scheme in addressing the pension matter. This necessitates the federal government to react on the main pension act of 2004 in order to address the irregularities in the previous scheme.

1.2STATEMENT OF PROBLEM

iSome of the problems operational rules between the private and public sector bedeviling the pension administration in Nigeria.

iiInefficient and less transparency in the pension administration process.

iiiExtensive delay in processing and payment of retirement benefit.

The foregoing scenario among other necessitated the tenet of this research work on the appraisal of the role of pension fund administration under the new pension scheme of 2004 and its contribution to the Nigeria economy.

1.3OBJECTIVE OF THE STUDY

The objective of the study are as follows:

iThe promote the activities of pension funds administration in Nigeria.

iiTo have an established fact on the role of pension fund administration.

iiiTo have a pension fund administration where it challenges or problems are at a reduced rate.