PENSION REFORM: How Will Pension Affect Me - Over time, people have been asking series of questions like; what are pension in Nigeria?
What does pension mean, what is pension bill, what is pension reform act,
This piece will show you extensively why we need pension-reform.
Pension Reform And Pension Mechanism In Nigeria
Pension mechanism in Nigeria was structured under colonial administrative system. By 1962, the national Provident Fund (NPE) was introduced.
In 1974, the Nigeria social insurance fund trust fund (NSITF) was introduced and by 1993, a major pension-reform was carried.
All the while, pension-reform accommodates scaff of private and public sector.
The old pension scheme of 1962, as amended in 1993 was very relatively favourable to workers (Elekwa 2011: 20)
Until 2004 pension act, he pension scheme permitted insignificant contribution by workers though compulsory.
Some scholars described it as non-contributory benefit scheme which compells government to budget certain amount to consolidated revenue from where pensioner’s age paid.
The pension act permitted compulsory 7.5% per month as take home at retirement Bayo (2012) notes that the act covers those due to retire from 2008.
The contribution is made at source monthly and to be managed by Pension Fund Administrators (PFAs) with the pension asset held by Pension Assets Custodians (PACs). This is to regulated and supervised by National Pension Commission (PEN com).
The Obasanjo administration was essentially committed to achieving a civil service based on international best practice.
It also strive to establish technologically driven workers through ICT friendly and professionalism; solve the problems of over bluntness and restore the confidence of Nigerians in public institutions, resolve the problem of duplication and overlapping functions between agencies and tiers of government.