Pension Reform Act 2014 and Challenges of Pension Administration in Nigeria

Abstract

The introduction and subsequent enac`tment into law of the Pension Reform Act 2004 by Nigeria’s National Assembly ushered in the Defined Contributory Pension scheme. It marked a watershed in the annals of pension administration in Nigeria. The Pension Reform Act 2004 which took effect on 25th June 2004, was a revolutionary attempt to do away with Nigeria’s much maligned and failed Defined Benefit Pension scheme. However, ten years later the Pension Reform Act 2004 was repealed and replaced by the Pension Reform Act 2014.This new Reform Act was essentially an amendment of some critical segments of the 2004 edition. Although pension administrative mechanisms have since improved in Nigeria especially with respect to retirees in the Federal public service, empirical indicators tend to suggest that the Contributory Pension Scheme as encapsulated in the PRA 2014 still manifests some lapses and Challenges reminiscent of the old order. It is in this context that this paper is primed to isolate and interrogate the intervening variables .Using data generated from secondary sources and other verifiable templates, the paper identified some provisions of the PRA 2014 which indeed distorts and frustrates the realization of the goals of the Act. The paper therefore recommends fundamental review and further amendment of the PRA 2014 with a view to resolving some contentious provisions and strengthening the regulatory body in order to curb the rising tide of massive fraud and poor service delivery in the Pension Administration Process in Nigeria

Keywords: defined benefit scheme and national pension commission, defined contributory scheme, pension administration, pension reform act

Article Review Status: Published

Pages: 18-29 (Download PDF)

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