Imperative of Pension Scheme in Achieving Employee Performance in Nigeria: A Focus on the Pension Reform Act 2014
Keywords:
Pension, NigeriaAbstract
This study examines the Imperative of Pension Scheme in Achieving Employee Performance in Nigeria with focus on the Pension Reform Act 2014. The objectives of the study include, understanding the evolution of pension in Nigeria, finding out the salient provisions of the 2014 Pension Reform Act, to examine the nexus between Pension and Performance. The research used the secondary data. The theoretical framework used in anchoring the study is the Scientific Management Theory by Fredrick Winslow Taylor. Some key findings made are; the evolution of the Nigerian pension scheme has been a gradual one, a transition from colonial ordinances, Legislative act, military decrees and Legislative acts. The salient provisions of the 2014 Pension Reform Act identified include, a contributory provision, investment of pension funds, a wider scope of coverage, provision for PENCOM as the chief bureaucracy for pension affairs, retirement benefit and deductions at source, penalty for non-remittance, provision for specified categories of exemption, and the non-provision for blockage of corruption in the sector; thirdly there were noticeable challenges in the pension administration such as poor public perception, poor funding, poor regulation, poor record keeping, pension staff questionable competency, frequent changes of pension polices, and corruption, all these undermine the use of pension as a credible instrument of improving employee performance. The recommendations made include; the evolution should continue, but a concerted effort should be made in making Pension reviews more participatory by involving all stakeholders to ensure a robust Pension Act; secondly the key provisions of the 2014 Pension Reform Act should be re-interrogated especially the area of bureaucratic corruption so as to check same and thirdly; amendment to the Act for more severe penalties to be imposed on erring employers especially those in the private sector who have refused to partake in the pension scheme, another recommendation was the need to increase the rate of contribution from employers and investment should be in less risky financial assets like Government Bonds, Treasury Bills, bank deposits and real estate’s etc.
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