EVALUATION OF PENSION REFORM IN NIGERIA: A COMPARISON BETWEEN THE OLD AND NEW SCHEME

EVALUATION OF PENSION
REFORM IN NIGERIA: A
COMPARISON BETWEEN THE
OLD AND NEW SCHEME
Nwaoma, G.E.
&
Okafor, M.C
Department of Accounting
Michael Okpara University of Agriculture
UmudikeBook of Abstract
ABSTRACT
Contributory pension system (CPS) was
introduced in Nigeria in July, 2004 to replace
the old defined Benefit (Pay-as you-go)
system. The motive behind the introduction
of the new pension system is to reduce the
poverty in Public & Private sectors of
Nigerian workers and their standard of living.
The Pensions Reform Act of 2004 brought a
new dawn in Nigerian Pension industry which
formally was a defined benefit but now
defined contributory. Although the new
scheme is being adjusted to be better than
the old scheme in that it is expected to
remedy all the abnormalities, ranging from
diversion/looting of Pensions funds to poor
records, it is advocated that Policy,
tax
evasion, tax compliance. PENCOMM should
be alive to their responsibilities in
monitoring, supervisory, coordinating and
over-regulating the pension industry in
Nigeria to get these objectives of the
government over the Pension reform
achieved.
Keywords: Pension Scheme, Deferred
Benefit Scheme (DBS), Contributory
Pension Scheme (CPS), Retirement
Benefit, Pension Fund Administrators

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