Problems And Prospect Of Pension Scheme Management In Nigeria (a Case Study Of Some Selected Insurance Company)

Many Nigerians today hardly come to understand what pension scheme is all about, though some employees have established occupational pension scheme while others have not appreciated the value pension scheme. The believe that too many security may lead to compliance and that social security schemes may lead to abuses such as premature retirements because of generous pension benefits and withdrawals of labour. However, such abuses should not retard the effort of the progressive employers from providing adequately for the needy.

While introducing the subject matter of this project, it is necessary that a brief definition of pensions be given. Pension is defined as a series of regular payment by an employer or the government to former employee who has reached his normal working life. This pension payment is due when an employee attains the age of 60 or 65 for all government establishment or at the point of disability or death.

The controller (technical) African Alliance Insurance Co.Ltd. Mr. Ani Onifadem, in his address presented on the launching of a book “management of pension scheme in Nigeria” on 14th June 1998, said that although pension scheme has been running in the advanced countries ago, it was not until the year 1951 that Nigeria first had a legislation establishing a pension scheme for government employees. This legislation is known as the pension ordinance. It had retrospective effects. From 1st January 1964 its main feature were the provision of pension and gratuities by the government, generally in accordance to certain regulations which were amended from time to time.

According to Eze (2005) Research design is specification of procedures for collecting and analyzing the data necessary to help solve the problems at hand, such that the difference between the costs of obtaining various levels of accuracy associated with level of accuracy is maximized.