THE ROLE OF CONTRIBUTORY PENSION SCHEME IN THE ECONOMIC DEVELOPMENT OF NIGERIA. A RESEARCH PROJECT MATERIAL ON INSURANCE
In this research work titled the role of contributory pension scheme in the economic development of Nigeria. The researcher examined the impact of contributory pension scheme in the economic growth of Nigeria. evaluated the contribution of the scheme to the welfare of pensioners in Nigeria. The information for the study was collected using primary and secondary methods of data collection. For a primary data collection, while existing literature relevant to the topic was consulted for the secondary data. The research used chi-square statistical model to analyze the data. The researcher found out that Contributory pension scheme has significant impact on the economic growth of Nigeria. Contributory pension scheme contributes to the welfare of pensioners in Nigeria. Based on the findings the researcher recommend that Government and the National Pension Commission must ensure effective monitoring, supervision and enforcement of the provisions of the Pension Reform Act, 2004 that introduced the new contributory pension scheme in Nigeria. Firms and other organizations must ensure effective implementation, compliance and application of the elements of the new contributory pension scheme that will enhance employee retirement benefits.
1.1 Background of the Study
Nigeria being a former colony of Britain, it’s been argued, received a pension tradition into her public sector that is entirely modeled after the British structure. Nigeria pension’s scheme had started in 1951 when the then colonial British administration established a scheme through an instrument called Pension Ordinance. It, however, had a retroactive effective from 1946 and applied only to Untied Kingdom officials posted to Nigeria. The law allowed the Governor General to grant pensions and gratuities in accordance with the regulations, which were reviewed from time to time with the approval of the Secretary of State for Colonial Affairs in the United Kingdom government. Vesting period was fixed at 10 years of service. The whole of the Ordinance Acts and Decree is capped up in the Decree No. 102 of 1979, which took effect from April 1, 1974. It consolidated all enactments on pensions and in corporate pension and gratuities seals devised for public officers by the Udoji Public Service Review Concision in 1974. In the same way, Pension Act No. 103 of 1979 like its counterpart Decree No.
102, of 1979, on the other hand, dealt with pension benefits, liabilities and seals devised for the agreed forces.