Unending Reforms of the Nigerian Pensions Act: The Dilemma of the Pensioners

Abstract

The dearth of satisfactory retirement plans coupled with poor retirees’ well-being led to the introduction of the contributory pension scheme. Pensions administration in Nigeria dates back to the 1950s. However, with effect from June 2004, a new Pension scheme evolved with the enactment of the Pension Reforms Act 2004. The new Act introduced the new pension scheme in Nigeria, a defined contributory scheme, unlike the old scheme which was mostly derived benefits. Although the new scheme was anticipated to be better than the old scheme as it was expected to remedy the lacuna and shortfalls predominant in the old scheme, there were noticeable errors and it subsequently became imperative to enact the Pension Reforms Act 2014 on 1st July 2014, and there are already agitations for a change. Unfortunately, most retirees or would-be-retirees do not understand the procedures or activities of PENCOM, the Pension Fund Administrators, and other relevant participants in the industry. This is made worst by the lack of education in this regard until workers are on their exit year. This research is carried out to assess the glitches occasioned by the different reforms of the Nigerian Pension Act. This paper has examined the preparedness and fears over retirement. It is advocated that the continuous or unending reforms of the Pensions laws in Nigeria, coupled with the fraud exposed by the National Assembly in 2012 with the new Pension Scheme, only adds up to the dilemma of the Pensioners.