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 recollective gained orbiculate recognition and acceptance. Workers generally whether those in the public and clannish sectors are expected to live comfortable life necessitous of whatsoever form of dependency after their successful retirement from mobile overhaul. The working lives of employees move continuously towards a reliable focussing i.e. from employment, to grow, to retirement. Some are fortunate to save copious 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 charter to bring up a way of accommodating and adequately rewarding employees prehistorical efforts, through organized pension plans, so that it can extend to the goal s of their existence (Rabelo, 2002). Essentially, this is often through assorted retirement policies which embarrass the Defined Benefit (pay-as-you-go) organisation, the National farsighted fund escape and in particular the new tributary pension scheme that is expected to be panopticy funded. However, approximately 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 describe of pension and retirement benefits. Its growing tribute, however, emerges from divergent schools of thought n amely, the contributory, the noncontributory! and the crossbreed 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 character to the plan the employee will be able to receive the absolute or part of the benefits at retirement, or in side of termination of...If you want to hold back a full essay, order it on our website: OrderCustomPaper.com

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