Pension Administration Research Articles

Blockchain-Enabled Pension System Innovations: A Hungarian Case Study on Business Process Management Integration

This paper explores the integration of Business Process Management (BPM) with blockchain technology to enhance pension systems, using Hungary as a case study. Specifically, it addresses scientific challenges related to data access management, regulatory compliance, and system scalability within blockchain-based pension frameworks. This study investigates how BPM can improve the transparency, efficiency, and security of blockchain applications in pension administration by optimizing workflows and automating compliance with regulations such as GDPR. By analyzing operational flow diagrams and implementing architectural models, this paper presents an innovative approach to pension management, demonstrating significant improvements in service quality and operational efficiency. Findings from this research provide empirical evidence of the benefits of BPM-enhanced blockchain systems, offering insights applicable to pension systems beyond the Hungarian context, including examples from other countries.

Pension Administration in the Nigerian Public Sector: Challenges and Prospects for Improved Service Delivery

Pension Administration in the Nigerian Public Sector: Challenges and Prospects for Improved Service Delivery

Old Age Poverty

Despite having over 500 000 pensioners, Zimbabwe is far from guaranteeing its elderly an effective social security system. The National Social Security Authority (NSSA) – is embroiled in numerous cases of corruption. Similar criticisms have also been levelled against personal pension schemes with the living potential of pensioners in Zimbabwe (who receive in some cases less than US$1 monthly), continuing to deteriorate. In contributing new data to the understudied phenomenon of the old age pensions industry in Zimbabwe, this study interviewed a purposively drawn sample of bureaucrats from NSSA and pensioners in three provinces. Profound challenges in decommodification – attributes of a zero accountability status quo and a tokenistic, non-transformative old age social security regime were noted with numerous recommendations being proffered. Old age pension administrators failure to define and maintain measurable social indicators was argued in the study as partly contributing to their inability to ensure compliance to their primary mandate of providing a social security net for pension contributors.

Advancing Legal and Ethical Arguments against Ex-Governors’ Pension Practice in Nigeria

One of the biggest issues with public accountability in most federal systems is the payment of pensions to former public officeholders such as governors, which is arguably undermining ethical standards in the public sector and impeding socio-economic development. This is because of the arbitrariness of the policy, the huge financial burdens it imposes on subnational governments, and the fact that such practice is often uncorrelated with the fiscal realities of the federating states. The problem is more challenging in developing countries that are weighed by weak institutions and poor governance. Using the Nigerian case, the study shows how public officeholders’ pensions are shaped by corruption-prone defective legislative processes configured to birth ex post facto laws that widen rather than narrow corruption and inequalities. Adopting a descriptive exploratory research design and document analysis technique, this study offers valuable insights into addressing the ethical and legal challenges surrounding public pension administration. It advocates for adopting a standardised model for regulating and administering pensions for public officeholders in developing federal systems. By advancing legal and ethical arguments against the prevailing ex-governors’ pension practice in Nigeria, this paper contributes to the extant discourse on improving accountability and governance in the public sector.

Political budget cycle and unfunded pension liabilities in states in the USA

IMPACT Evidence shows that gubernatorial elections affect pension funding in US states. Contrary to expectations, this article shows that pension plans in election and post-election years tend to be better funded. Other political factors, such as partisanship and unionization, also play a role in funding state employees’ pension plans—the higher the level of unionization, the lower the pension funding. Institutional factors, including tax and expenditure limits (TELs), ‘rainy day funds’ (RDFs), and balanced budget requirements (BBRs), also affect pension funding. TELs positively affect pension funding, while the level of RDFs and the stringency of BBRs tend to reduce pension funding. These findings caution state fiscal administrators and state-level policy-makers as they indicate that political factors along with fiscal institutions are important to consider for their long-term impacts on the viability of pension plans. This article informs policy-makers in the USA and in other countries to exercise more caution during election years as electoral politics may affect pension funding. Political factors are critical in making fiscal decisions, and while this study focuses on the USA states, the lessons are equally important for pension administrators and policy-makers in other countries.

The Effects of Pensions Administration on Earnings Management of Listed Pension Companies in Nigeria

Purpose: This paper examined the effect of pension administration on earnings management (EM) of listed pension companies in Nigeria. Design/Methodology/Approach: This study employed an expo factor research design, and the study population was 35 listed pension companies in Nigeria over a study period of between 2013 and 2021. General least square (GLS) regression technique of analysis was employed to examine the study model. Findings: Result from the generalised least squares regression documented contribution density, and exits had a significant positive relation with EM except for pension fund. Practical Implications: The study might have practical implications for regulators and governance experts with understanding of related category of agency problems that might arise in the Nigerian context. The research highlighted the potential to improve the effectiveness of pension funds, contribution density, and exit age to achieve their ultimate objective in providing income replacement in retirement by developing portfolio strategies. Original Value: The study suggested the need for governments and their pension supervisors to consider a more active role in evaluating and proposing the long-term objectives of pension funds, contribution density, and exit ages for various categories of workers, as well as reducing the effect of EM. Keywords: Pension fund, contribution density, exits age and earnings management.

SAVING FOR RETIREMENT DAYS: A CURE OR CURSE? A STUDY OF UNIVERSAL BASIC EDUCATION BOARD RETIREES, AKWA IBOM STATE, NIGERIA

The study is an examination of pension administration as a correlate for retirees’ wellbeing with focus on retirees of Akwa Ibom State Universal Basic Education board. In this study wellbeing is measured using the OECD standard indicators of health, housing and material conditions. Related literature were reviewed and the social exchange theory was used as the theoretical framework. The study adopted the descriptive survey research design and the purposive and snowball sampling technique. Data was collected from 203 respondents through the use of questionnaire and determined via the Taro Yamane while the simple percentage was used as a method of data analysis. Findings from the study revealed that poor pension administration has a negative impact on the wellbeing of retirees and a majority of the retired primary school teachers have poor wellbeing, a situation they slipped into post-retirement. The material condition of life of retirees is equally deplorable as pension income never comes at the proper time and as such consumption pattern in most retirees’ households have been affected adversely. The study recommends that there should be an adjustment to the pension scheme in terms of its implementation, administration and coordination to ensure early disbursement of funds to retirees Government should encourage a stakeholder engagement forum perhaps quarterly. The existing pension laws should be strengthened and strong disciplinary measures put in place to ensure that those who are involved in looting pension funds face the law.

The effect of population aging on pension enforcement: Do firms bear the burden?

AbstractPopulation aging is widely assumed to have detrimental effects on economic development, especially through an increased social security burden. This paper starts with the potential problems of the pension system in China. We investigate how local governments respond to population aging and the impact of population aging on the firm pension contributions using administrative data from the period 2008–2015. We present three findings. First, population aging increases the pension contributions of firms. Second, fiscal pressure is the channel through which population aging affects pension enforcement. Last, the pension administration system could affect the net impact of population aging.

Unending Reforms of the Nigerian Pensions Act: The Dilemma of the Pensioners

The dearth of satisfactory retirement plans coupled with poor retirees’ well-being led to the introduction of the contributory pension scheme. Pensions administration in Nigeria dates back to the 1950s. However, with effect from June 2004, a new Pension scheme evolved with the enactment of the Pension Reforms Act 2004. The new Act introduced the new pension scheme in Nigeria, a defined contributory scheme, unlike the old scheme which was mostly derived benefits. Although the new scheme was anticipated to be better than the old scheme as it was expected to remedy the lacuna and shortfalls predominant in the old scheme, there were noticeable errors and it subsequently became imperative to enact the Pension Reforms Act 2014 on 1st July 2014, and there are already agitations for a change. Unfortunately, most retirees or would-be-retirees do not understand the procedures or activities of PENCOM, the Pension Fund Administrators, and other relevant participants in the industry. This is made worst by the lack of education in this regard until workers are on their exit year. This research is carried out to assess the glitches occasioned by the different reforms of the Nigerian Pension Act. This paper has examined the preparedness and fears over retirement. It is advocated that the continuous or unending reforms of the Pensions laws in Nigeria, coupled with the fraud exposed by the National Assembly in 2012 with the new Pension Scheme, only adds up to the dilemma of the Pensioners.

An Assessment of the Impacts of the Pension System Reforms on Employees’ Performance and Retention in Nigeria Distilleries Limited, Lagos Nigeria

Consequently, upon many decades of inefficient and corrupt pension management system in Nigeria, public servants in Nigeria dreaded retirement because of the reported plight of retirees who were seen dying on queues or living under the bridges at the Federal Capital City of Abuja. While an average worker in other parts of the world looks forward to a decent and enjoyable post-work life, Nigerians lived in fear of ageing and retirement resulting in several malpractices such as multiple declarations of age with intent to keep them at work far past the official retirement age. Factors arising from pension inadequacies, poor funding, embezzlements and long arrears especially in the public sector led to the initiatives for restructuring of the country’s pension system and the enactment of the Pension Reform Act of 2004 and its review Act of 2014. The reforms aimed at making pension administration more effective, efficient, to make and improve on the question of adequacy and fund security. However, key problems in the management of the new pension system involve the perception of the degree and significance of its impact and whether key objectives are satisfied according to the intent of the reforms. This study was designed to examine whether the reforms have contributed significantly to addressing employees' post-work-life concerns and how such assessments impact their performance. Specifically, the paper examines if a relationship exists between the new pension reform act and employee retention, as well as organizational performance using a sample of employees of Nigerian Distilleries Ltd. Three hypotheses were tested at a 0.05 level of significance, using the inferential statistics of Regression Analysis with the aid of Statistical Package for Social Sciences (SPSS version 20). The findings show that there is a significant relationship between the New Pension Reform Act and employee’s performance. Also, the New Pension Reform Act has a positive effect on employee retention, compensation design must reflect this option in order to attract, motivate and retain employees. With further evidence that the pension system has the propensity to align the individual and corporate goals by increasing their job commitment, performance and motivation, the paper concludes that proper implementation of the provisions of the pension reform act is a prerequisite for achieving its objectives.

Social policy in Scotland after the devolution reform. Towards fragmentation of the British welfare state?

The article presents the origins and evolution of social policy programmes in Scotland since the referendum in 1997. Regional authorities in Scotland obtained significant prerogatives in payment of social benefits. They actively exercised the rights granted by the UK legislation, resulting in the partial decentralisation of the social security system in the United Kingdom of Great Britain and Northern Ireland has become a fact. This decentralisation is not complete, because the administration of pensions, and unemployment benefits remains the sole responsibility of London’s central government. One of the features of British social policy has become territorial asymmetry, consisting of partially different programs and social policy institutions in other parts of the UK. The most important effect of the reforms is the creation of institutions and draft social policy programs that can be put into effect, when the process of political emancipation in Scotland will lead to a new regional referendum.

The Regulation of European Long-Term Investment Funds (‘ELTIFs’)

In accordance with the Europe 2020 strategy, long-term finance is a crucial enabling tool for putting the European economy on a path of smart, sustainable and inclusive growth with high employment, and competitiveness for building tomorrow’s economy in a way that is less prone to systemic risks and is more resilient. Certain types of alternative investment funds (‘AIFs’) provide finance of lasting duration to various infrastructure projects, unlisted companies, or listed small and medium-sized enterprises (‘SMEs’) that issue equity or debt instruments for which there is no readily identifiable buyer. By providing finance to such projects, these types of AIFs contribute to the financing of the European Union’s real economy. Furthermore, AIFs, on the demand side, provide a steady income stream for pension administrators, insurance companies and other entities that face regular and recurrent liabilities and are seeking long-term returns within well-regulated structures. While providing less liquidity than investments in transferable securities, AIFs can provide a steady income stream for individual investors that rely on the regular cash flow that an AIF can produce. Furthermore, AIFs can also offer good opportunities for capital appreciation over time for those investors not receiving a steady income stream. ‘Long-term financing’ for projects, such as transport infrastructure, can be scarce. As the financial crisis in 2007/2008 has shown, complementing bank financing with a wider variety of financing sources that better mobilize capital markets could help tackle financing gaps. AIFs, under certain conditions, can play a crucial role in this respect. The ELTIFR as an optional specialist regime has been adopted for alternative investment fund managers (‘AIFMs’) to boost European long-term investments in the real economy. Long- term investments in projects, undertakings, and infrastructure in third countries can also bring capital to ELTIFs and thereby benefit the European economy. To that end, the European legislator has introduced a dedicated legal framework for AIFMs managing European long-term investment funds (‘ELTIFs’). This regime designates those AIFs as ‘ELTIFs’ that comply with the requirements under the Regulation (EU) 2015/760 of the European Parliament and of the Council of 29 April 2015 on European long-term investment funds, as amended (‘ELTIFR’). EU AIFs with an ‘ELTIF’ label may be marketed to professional and certain high net-worth investors throughout the EU. The ELTIFR establishes uniform rules, so that a clear demarcation line can be drawn between an ELTIF and other AIFs that engage in other, less specialized, investment strategies, which the ELTIFR is not seeking to promote. The ELTIFR establishes a uniform regulatory framework on the nature of ELTIFs, in particular on eligible investments in which ELTIFs are to be permitted to invest, and the investment instruments to be used. The ELTIFR is an optional regime. Where AIFMs do not wish to use the designation ‘ELTIF’, the ELTIFR does not apply. In those cases, AIFMs may continue to base themselves upon labels under existing national rules and general EU law applies. This contribution discusses the ELTIF legal framework. Section 2 discusses the ELTIFR’s scope, including the relationship between the AIFMD and the ‘ELTIFR top-up’. Section 3 focuses on the ELTIFR and the relationship between ‘intermediary’, ‘product’ and ‘marketing/sales regulation’. These are elaborated in more detail in Section 4 (‘manager regulation’), Section 5 (‘product regulation’), Section 6 (‘depositary regulation’), and Section 7 (‘marketing & sales regulation’). Section 8 discusses the ‘ELTIFR retail investor regime’, including the retail provisions AIFMs managing ELTIFs and their distributors have to comply with. Section 9 explains the authorization regime for both AIFMs intending to manage ELTIFs and the ‘product’ ELTIF itself and Section 10 concludes.

EFFECTS OF PENSION ADMINISTRATION ON CIVIL SERVANTS IN NASARAWA STATE HEAD OF SERVICE LAFIA

The work was designed to assess the issues and challenges of Pension Administration on Civil Servants in Nasarawa State Head of Service Lafia. The work adopted a survey method. As the instrument of data collection, oral interview and research questionnaire were used. The analysis of the questionnaire was done based on percentages, allowing the greater or less than factor to influence the judgment gotten from the responses. After which it was discovered that Nasarawa State Head of Service Lafia have a policy on Pension Administration and also, the causes of delay in the administration of pension and gratuity in Nasarawa State Head of Service Lafia is due to poor record system, diversion of allocated funds and also, outright fraud irregularities that ineligible pensioners are on the payroll. Based on the followings, we suggest that since the Nasarawa State Head of Service Lafia have a policy on Pension Administration, the service should ensure the sustainability of this policy towards the growth and productivity of the service and also, the management of the service should find means of handling the poor record system that causes delay in the administration of pension and gratuity within the service by developing adequate record system and ensure that problem associated with diversion of allocated funds are stopped and also, outright fraud irregularities are discouraged whereas the service should ensure that eligible pensioners are on the payroll. Penalty should also be meted out to those who steal pensioner’s funds to prevent others who may have the mind and the erring operators to forestall more pension scams in the State.

Adopting technology adoption model organisation in human resource management through primary research

Human resource technology has been used in HR domain to support activities such as web advertisement, hiring, and maintain human resources records, provide support to HR administration, and optimise human resource management. Human resource information systems (HRISs) have over the years made the role of a human resource professional much simpler with better outcomes and higher productivity than traditional methods (Dessler et al., 2008). In this paper, the role of HRIS has been studied in order to simplify standard HR practices with the use of technology. Practices such as recruitment, recording effort time and daily attendance, learning and development, designing compensation and benefits and administering them, payroll administration, performance management systems, appraisal system, pension and benefits administration, labour relations are components that comprised an HRIS. Using a Delphi study of 180 (N = 180) respondents, findings indicate that simplicity in design, minimal technical errors, rewards, availability of information at one platform, and training quality appeared as the influencing factors for acceptance of HRIS. The findings can be used in other organisations of similar characteristics where technology can bring in simplified processes for faster implementation.

Pension Reform: An Assessment of Policy Implementation in Kaduna and Niger States Public Service, Nigeria

The study assessed the pension reform policy in Kaduna and Niger states public service. Research design adopted for the study is descriptive-survey method which was used to carry out the study. The total population figure was estimated at about 170,000 including the 30 pension administrators/custodians. The sample-size for the study was 1700 representing 0.01% of the entire population. The sample-size was randomly selected to give each respondent a fair chance of being selected with purposive sampling technique. A structured questionnaire was used in data collection. The descriptive and inferential statistics such as mean scores, tables and content analysis were used. The mean range starts from 3 points and above. The research results lead to the clarity about the current contributory pension scheme in the public service for effective pension administration. Based on the results of findings of the study it was recommended that the banks and private financial institutions involved in Pension Fund Administration (PFA) should show ways to facilitate transparency and prudent accountability by publishing the rate of return, regular statements of contribution and interest for the various contributors to keep them abreast with their contributions.

The Gender Perspective Of Psychological Challenges Experienced By Residents In Homes For The Aged In Nigeria

The purpose of the study was to identify the gender differentials in psychological problems experienced by residents of homes for the aged in Nigeria as well as the strategies for reducing the problems. Two research questions and two hypotheses guided the study. The design was descriptive, involving 235 residents of mission and government-managed homes for the Old selected through cluster random sampling. Data were collected through a 108 item research-developed questionnaire organized in four sections. Mean ratings were used in answering the research questions, while t-test statistic was used in testing the hypotheses at 0.05 level of significance. Findings indicated that residents of old people’s homes experience a series of psychological challenges such as depression, insomnia, amnesia, emotional problems and fear. While, female residents rated emotional challenges and fears as more contributory to their psychological challenges and male respondents rated self-esteem as significant influencers to psychological challenges. In addition, the residents perceived that policy enforcement, pension policies and medical services as key strategies to reducing psychological challenges and that resident of mission-managed homes rated their experiences of social problems more than the residents in government managed homes. Based on this a number of recommendations were made which include; policy review of existing policies on the care of the aged in the society, pension administration review, more participation by the Nigerian government, re-training and employment of care-givers by non-governmental bodies, missionary and the government, integrating a gender based approach in counseling, ensuring adequate medical facilities are available, fast tracking medical response services to members of this elite group.

Utilising trade unions in business continuity management to create resilience

Purpose Trade unions are the political arm of the working class, economically active masses, whilst industrial action is a demonstration of the will to reach their objectives. However, the crippling of systems through such contradicts business continuity. Yet, the opposite is true for a natural disaster that traumatises the union member and has a direct impact on their well-being. Inculcating a service continuity and resilience in government, with trade unions as majority stakeholders, may be a challenge. Moreover, it is further complicated by the African perspective, which will become prevalent in the author’s deliberations, as the trade union landscape is open to revolutionary Marxism, Socialism and Capitalistic precepts and concepts. Testing the problem and solutions with the period model produces evidence that purports a future praxis for business continuity management (BCM) that involves trade union representatives and their members. Ultimately, trade unions, cumbersome as they may seem, have much to offer as far as human resources, mass membership, knowledge and skill are concerned. The paper aims to discuss these issues. Design/methodology/approach An action learning approach linked to the period model to answer five research questions, namely: What is the actual modus operandi of trade unions with regard to business continuity and resilience?; What is the actual interest of union representatives in the understanding and implementation of BCM and resilience standards and concepts?; What would be required to utilise trade union platforms for the purposes of BC induction and awareness?; How will BCM certification for trade union stewards affect or impact on their industrial actions or campaigns?; How can the BCM fora develop a theory and possible praxis, to involve trade unions as part of the business continuity and resilience programme of an organisation? Findings The findings are as follows: the period model works as an agent of action learning. The likelihood of trade unions to participate in business continuity outside of labour action is commendable. Trade union representatives are keen on being certified as BCM practitioners. BCPs are inclined to fail with industrial action when involving trade union representatives. The BCM Policy and ISO 22301 standards bring about a good understanding of the roles of BC practitioners and union representatives in a crisis period. Research limitations/implications Research was limited to the pilot site, i.e. The Government Pensions Administration Agency – South Africa. Originality/value The paper brings about a new dimension to a business continuity programme, where the trade unions are no longer an interested party but rather they become active members of a business continuity team.

Reprint of: Do retirement savings increase in response to information about retirement and expected pensions?

How can retirement savings be increased? We explore a unique policy change in the context of the German pension system to study this question. As of 2005 (with a phase-in period between 2002 and 2004), the German pension administration started to send out annual letters providing detailed and comprehensible information about the pension system and individual expected public pension payments. This reform did not change the level of pensions, but only provided information to individuals about their expected pension payments. Using German tax return data, we exploit an age discontinuity to identify the effect of these letters on the behavior of individuals. We find an increase in tax-deductible private retirement savings and provide evidence that this is not due to a crowding-out of other forms of savings. We also show that labor earnings, i.e. the most direct way to increase public pensions, increase after receiving the letter.

N ULLITY OF TRANSFER FROM RPM TO RAIS - HOW THE JUDICIAL CONGES - TION AFFECTS , THE EFFECTIVE ACCESS TO JUSTICE , OF USERS WHO HAVE BEEN DECEIVED BY THE PRIVATE PENSION FUNDS

ince the entry into force of Law 100 of 1993, Law that brought about the privatization of health and the administration of pensions on behalf of private entities, entities and / or societies that belong to an economically privileged sector, they began a task and / or excessive competition, without adequate rules of the game, in terms of attracting its users. Over the years, connoisseurs of the subject have identified considerable shortcomings, regarding the lack of clarity in the administration of the resources of the affiliates, the absence of adequate information, lack of report of returns, among others, by of these entities. The protection and defense of the rights to protection and social security, to the vital minimum, to information, to dignity and to work, through labor jurisdiction, were sought to ensure that these bad practices carried out y the Private Funds were condemned. they administer the resources destined to the pension of Colombians, through the demands of nullity and / or ineffectiveness of transfer to deprecate that justice is given by the judicial courts and the AFPs are condemned, to carry out the transfer of all contributions, capital, pension bonus, income and interest, to the State Pension Fund administrator “Colpensiones”.

The Contributory Pension Scheme and the Fate of Retired and Retiring Nigerian Workers

This paper examines how the Nigerian workers have fared with the new contributory pension scheme. More than thirteen years after the contributory pension scheme came into being through pension reform act of 2004, the scheme is still enjoying low penetration as many public and private organizations are yet to key into it. There is also the pension reform act of 2014 signed into law by former president Dr Goodluck Jonathan to further strengthen pension administration in Nigeria. Laudable as the new contributory pension scheme is only the Federal Government and its agencies have fully keyed into it. There are also a few states such as Lagos, Anambra, Delta, Osun, Niger, Ogun, and Zamfara which have braced the odd to migrate workers into the new scheme from the old one that was full of encumbrances and government interference. While the Federal Government and some states are remitting their counterpart funding to add to that of workers regularly to the pension administrators, not many employers in the private sector can be said to be doing the same. During the first quarter of 2016, many states were yet to embrace the new pension scheme, while only a few private organizations keyed into the scheme. There is no doubt that a very uncertain future awaits many Nigerian workers at retirement as a result of non-compliance of some states and private organizations which are not likely to key into the scheme any time soon owing to the economic recession and revenue crisis in the country. Some retired workers have complained that up to the time they left their employment they never knew their contributions were not remitted to their Pension Fund Administrator (PFA). This paper therefore contends that the regulatory agency, the National Pension Commission has a lot to do in ensuring that employers do not continue to shortchange their workers. Genuine efforts need to be made in this direction so as to restore the confidence of workers that the new scheme is a lot better than what was in place previously.