Pension scheme in nigeria pdf

Pension reform act 2004 national pension commission. Pension scheme cps, which made it mandatory for employers and employees in both the public and private sectors to contribute towards employee retirement benefits. The pension reforms act of 2004 brought into limelight the new pension scheme in nigeria which is a defined contributory scheme unlike the. As a result of massscale pension exclusion, rapid life expectancy improvements, negligible lifetime savings and a. In executing its mandate, it licenses and regulates all pension operators and ensures an effective administration of pension for the benefit. As at date, 26 states of nigeria have noticed the enormous benefits of the scheme and they have adopted and are at different stages of implementation of the contributory pension scheme.

The scheme seems very novel both in organization and administration to many employees and employers in nigeria. This paper seeks to examine the evolution of pension fund administration in nigeria, the problems associated with the scheme, and suggests ways in which the scheme. Every eligible employee private or public shall maintain a retirement savings account in his name with the pension fund administrator pfa of his choice. This report explores the key issues surrounding pension funds as a source of financing for african infrastructure and makes a compelling case for reforming the continents pension schemes so. The history of the nigerian pensions administration dates back to the 1950s. The national pension commission pencom is an agency of the federal government of nigeria established by the pra 2004 to regulate and supervise all pension matters in nigeria. The pension reforms act of 2004 brought into limelight the new pension scheme in nigeria which is a defined contributory. Pdf the pension system and retirement planning in nigeria. The new scheme is a contributory, privately managed pension.