Abstract
This study discussed the challenges of implementing the contributory pension scheme in public universities in Nigeria. The rationale, objectives, and features of the contributory pension reform act of 2014 (amended) were discussed. Secondary sources of data were used for the discussion and the views of other scholars as it concerns the implantation of the contributory pension scheme. The identified challenges includes: non-compliance by many state governments thus state owned universities; non remittance by government; inability of retired employees to access their pension benefits; unique engagement arrangements of Nigeria universities; inability of employees to open and own a retirement savings account (RSA); perception of employees to the scheme; contributing ratio by government and employees; different pension scheme and uncertainties of the old defined benefits scheme in some universities; inability of government to fund the guaranteed minimum pension (GMP); inadequate induction and orientation programme at the point of engagement. It was however recommended among others that state governments should appreciate the benefits of the contributing pension scheme and enact laws that will ensure its implementation in all state owned institutions including the universities. Key words: Employees, public universities and contributory pension scheme.
Highlights
Public universities in Nigeria are government own institutions established for the purpose of producing high level manpower
The contributory pension scheme involves the gradual retirement planning for every employee, it made provisions for the deduction of 8% of the employees’ monthly emolument and the employer pays a minimum of 10% for the employee into the retirement savings account (RSA)
The federal government and many state governments have been defaulting and had not kept to its own obligation of ensuring regular remittance to the employees’ retirement savings account (RSA). This contradicts the provisions of the Federal Republic of Nigeria pension reform act of 2014 which state in section 11 subsection 3(b) that “the employer shall not later than 7 working days from the day the employee is paid his salary remit an amount comprising the employee’s contribution and the employers contribution to the RSA
Summary
Public universities in Nigeria are government own institutions established for the purpose of producing high level manpower. The employees of the public university system are employees of the government who show commitment in the discharge of their duties through teaching, research and social activities that will ensure the availability of high level manpower in the society (Emunemu, 2017). They expect some immediate rewards in terms of salaries and other benefits while in active service and thereafter, a measurable reward at retirement known as pension. The act repeals the pension act of 1979 and established a new contribution scheme for employees both in the public and private sectors in Nigeria This was amended by the national assembly in June 2014. The objectives, features, observed challenges of implementation in public universities and way forward are hereby discussed in this study
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
