An Overview of the Nigerian Contributory Pension Scheme (2004 and 2014 Pension Act)

Abstract

The dejection and helplessness of pensioners waiting to be paid pension benefit under very frustrating verification process occasioned by impunity in pension fund administration led to the Pension Act of 2004.  This ushered in the Contributory Pension Scheme that replaced the Defined Benefit Pension Scheme with attendant review in 2014 to check mismanagement. This paper critically examines the contributory pensions scheme; identifies its inadequacies and also highlight the lapses of the old defined Benefit pension scheme.  Information was obtained from secondary source and personal encountered with pensioners.  In course of this study it was discovered that the contributory pension scheme was selectively implemented, not including all the Government Parastatals, there is a wide financial disparity between the old and new pension scheme, absent of life span annuity and also discovered is the current mode of diversion of pension assets.;  This paper recommend the wholestic implementation of the policy by the Government, the financial disparity in the pensioner take home should be bridged up by increased financial involvement by the Government and to fore-stall financial misappropriation, interests and commissions accruable to pension fund asset should be disclosed on regularly.  The Contributory Pension Scheme is a welcome idea which when properly implemented will eradicate the pensioners harsh life thereby making their dream a reality.