Proceedings of 11th International Business and Social Science Research Conference
8 - 9 January, 2015, Crowne Plaza Hotel, Dubai, UAE, ISBN: 978-1-922069-70-2
Performance of Public Sector Contributions on the
Growth of the Contributory Pension Scheme in Nigeria
Eche, Ann Uzoamaka
The pension Reform Act 2014 ushered contributory Pension Scheme (CPS) that is fully
funded and privately managed. The Act also established the National Pension
Commission (Pencom) as the sole regulator and supervisory body on pension matter in
Nigeria. The contributions to the new pension scheme in Nigeria are made from two
sources; private and public sector. Private Sector comprises all the organizations that
have three or more employees. The public sector comprises the Federal Capital Territory
(FCT), the federal ministries, Agencies, Parastatals, Defense forces, Commissions,
States and Local Government employees etc, but majority of the state government
refused to implement the scheme hence affecting the performance of public sector
contribution and effective growth of Contributory Pension Scheme in Nigeria. The
objective of the research is to examine the public sector contribution on the growth of the
Contributory Pension Scheme in Nigeria. The researcher made use of pair-wise
correlation and regression model and the analytical techniques was aided with SPSS. It
was found that Contributory Pension Scheme has a positive and a significant relationship
with Public Sector Contribution and public sector contribution has significant effect on the
growth of Contributory Pension Scheme in Nigeria. It therefore concluded that the
contribution made by Public Sector enhances the performance of contributory pension
scheme in Nigeria and recommended that National Pension Commission (PENCOM)
should enhance the implementation of the scheme in all the States and Local
Government in Nigeria, and that they should organize seminars to educate both the
employers and employees
Keywords: Public Sector, Contributory Pension Scheme, PENCOM, Pension
Reform Act.
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Eche, Ann Uzoamaka, Department of Insurance, Institute of Management and Technology (IMT),
Enugu, Email: nnuzoamaka@yahoo.com