The Impact of New Pension Reform on The Lives of Nigeria Retirees

Agbaji Benjamin Chukwuma, Ipigansi Moun Pretoria

This research attempted to investigate the effect of new pension reform on the lives of Nigeria retirees. The purpose of this is to explore the need for better retirement welfare and ensure prompt payment of retirement benefits. A structured questionnaire was used to obtain data. Data were analyzed using the information obtained from the questionnaires. Results from data analyses suggest that pension business should not be run like government business. Stocks at the floor of the stock exchange should be allowed to compete for pension funds but with some form of ‘Circuit Breaker’ that stops the bidding process when the market begins to go chaotic. The new pension reform act should be fully implemented as stated in section 4(1)(c) of the Act which stipulate that after the withdrawal of a lump sum of money to be paid to a pensioner as gratuity, the amount standing to his RSA credit should be sufficient to pay him an annuity of 50% of the last salary he received before retirement. In the case of a shortfall, section 12 (1) (b) also that the 'shortfall shall immediately become a debt of the relevant employer' who shall 'issue a written acknowledgment of the debt to the relevant employee (retiree) and take steps to meet the shortfall' (Nigeria 2004). This provision should be fully implemented, so that all retirees under the CPS can, at least, receive 50% of the last salary they received before retirement.