This study examined contributory pension scheme and the risks entailed in management of retirement benefits of Lagos State Public Service workers. Although at the inception of the scheme in Nigeria, government workers were not duly informed and sensitized about the new pension scheme but they could not out-rightly refuse its acceptability with the fear of not losing their pensionable employment. This however, led to wrongly enrolment into the scheme by those who were exempted from the scheme as of the commencement date. Survey research design was adopted for the study. Population of the study covered potential retirees who attended bi-annual pre-retirement seminar organised by Lagos State Pension Commission. One Hundred and Eighty-Seven (187) was the sample size for the study and questionnaires were proportionately distributed to selected respondent, using convenient sampling techniques. Out of the total number of the copies of the questionnaires administered, One Hundred and Sixty-Six (166) copies of questionnaire were correctly filled and retrieved representing 88.77% and were used to analyse data. Analysis was done using Correlation Analysis with the aid of Statistical Package of Social Sciences (SPSS). The findings revealed that there is a positive correlation between employee’s contributions and remittances. Also, there is a moderate positive correlation on influence of accrued rights on employees’ retirement benefits. Likewise, escrow fund has positive relationship with employees’ retirement plan. The study recommended that there should be adequate review of retirement benefit payment policy of those in active service before the commencement of the new contributory pension scheme to avoid old age syndrome and acquaintance of the pension to life after retirement. Also, the need for upward review of the meagre called salary for Public Service Workers compared with their counterpart in corporate organisation for them to have robust retirement package.
KeywordsAccrued RightActuarial ValuationEscrow FundGroup Life Policy and Remittance
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