Challenges of Pension Funding in Nigeria

Chapter One Introduction 1.1Background to the Study According to Sule and Ezugwu (2009:1) tribute as a organization is designed to cater for the welfargon of the personable retired workers had for gigantic gained orbiculate recognition and acceptance. Workers generally whether those in the public and hugger-mugger sectors are expected to live comfortable life necessityy of whatsoever form of dependency after their successful seclusion from mobile profit. The working lives of employees move continuously towards a sealed focussing i.e. from employment, to grow, to retirement. Some are fortunate to save bountiful property to take them through the retirement period or the showery day while a majority leaves the service with dinky or no savings at all. Ideally, there, governments and organizations need to bring up a way of accommodating and adequately rewarding employees prehistorical efforts, through organized pension plans, so that it can extend to the goals of t heir existence (Rabelo, 2002). Essentially, this is often through divergent retirement policies which embarrass the Defined Benefit (pay-as-you-go) organisation, the National provident fund escape and in particular the new contributory pension scheme that is expected to be extensivey funded. However, around of the existing pension schemes seem inadequate and/or ineffective.

In Nigeria, for instance, SAS 8 was issued in1991 to restrain and guide businesses on the determination and reportage of pension and retirement benefits. Its growing tribute, however, emerges from divergent schools of thought namely, the contributory, the noncontributory and the ! hybridizing schools of thought (Kantudu, 2005). The starting school of thought, emphasizing on contribution, is advocated by most chronicle standards setting bodies as well as by writers (Campbell and Feldstein, 2001). These scholars argued that should the employees sum up a certain role to the plan the employee will be able to receive the full(a) or part of the benefits at retirement, or in caseful of termination of...If you want to hold back a full essay, order it on our website: OrderCustomPaper.com

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