The Contributory Pension Scheme (CPS) and Sufficiency of Retirement Benefit of the Low-Income Retirees of the Federal Public Service in Nigeria
Omotayo Johncally ABERE1, BANJO, Kudirat Adeola2, Toyin Shafau SAKA3
1Omotayo Johncally ABERE, Department of Actuarial Science and Insurance, Lagos State University of Science & Technology, Nigeria.
2BANJO, Kudirat Adeola, Department of Actuarial Science and Insurance, Lagos State University of Science & Technology, Nigeria.
3Toyin Shafau SAKA, Department of Actuarial Science and Insurance, Lagos State University of Science & Technology, Nigeria.
Manuscript received on 28 November 2022 | Revised Manuscript received on 02 February 2023 | Manuscript Accepted on 15 May 2023 | Manuscript published on 28 February 2024 | PP: 35-51 | Volume-3 Issue-1, May 2023 | Retrieval Number: 100.1/ijef.A256204010524 | DOI : 10.54105/ijef.A2562.03010523
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© The Authors. Published by Lattice Science Publication (LSP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This study examined the level of sufficient retirement benefit under the contributory pension scheme emanating from the pool of savings contributed that can suffice to provide the minimum needed livelihood. The secondary data of all pension contributions and retirement benefits were retrieved from series of publications of Pen Com from the years 2004 to 2022. The primary data population consists of 1316 retirees. EasyFit 5.6 Professional Software together with the Least Square Model, accumulation and annuity formulae was employed to analyse the secondary data and the responses from the respondents during survey. Arising from the data collected and the analysis carried out using the Consolidated Public Service Salary Structure, the level of comfort of low income retirees who spent 20 to 35 years in active service is nothing to write home about due to insufficient pension benefits as a result of the challenges investigated. The study recommends the implementation of minimum pension derived with requisite modalities of 20 years as the minimum qualifying length of service and only 10-year post retirement subsidy.
Keywords: Contributory-Pension-Scheme, Low-Income-Retirees, Guaranteed-Minimum-Pension, Retirement-Benefit.
Scope of the Article: Public Sector Accounting