ABSTRACT
The study examines an evaluation of the contributory pension policy in the Unified Local Government Service of Delta State. Its objectives are to determine the relationship between non-remittances of Delta State Government’s share of Local Government employees’ pension contributions and delay in payment of pension entitlements, ascertain the relationship between lack of awareness of the contributory pension policy and inability to seek redress legally for default in payment of pension entitlements, determine the relationship between poor supervision of payment of pension entitlements by the National Pension Commission and ineffective implementation of the contributory pension policy, determine the relationship between the defaults in payment of pension benefits and ineffectiveness of Pensioners Union, examine any significant relationship between the threat of severe sanctions on violators of pension reform act 2014 and the difficulties encountered by pensioners in receiving their pension benefits as and when due, ascertain an association between lack of improvement in socio-economic status of retirees and implementation of the contributory pension policy, determine a significant relationship between ineffectiveness of pension fund administrators and irregularities in payment of Pensioners’ entitlements. The study adopted both quantitative and qualitative methods in generating primary data for the study using the questionnaire and in-depth interview methods as complement, which was followed by analysis with the aid of SPSS version 23, using descriptive statistics, such as simple percentages and bar graphs, and inferential statistics, such as chi square techniques to test association of variables, while Pearson’s Contingency Coefficient was used to test the degree or strength of association of variables. A survey research was adopted for a population of 12,465 staff of Unified Local Government Service of Delta State, out of which a sample of 1,200 was drawn through the application of Taro Yamane’s statistical formula; and simple random sampling techniques was subsequently adopted in administration of questionnaires to respondents, and granting of in-depth interview to 22 other respondents who were retirees of local Government Service, officials of Bureau of Local Government Pensions and Stanbic IBTC Pension Managers. Findings from the study show a very high level of failure in effective implementation of the contributory pension policy in Delta State Local Government Service. Consequent upon the above findings, we recommend a further amendment of Pension Reform Act 2014 to allow retirees be paid from any available money in their savings account immediately after retirement prior to consideration of outstanding remittances by employers, increase from 5 % to 15% the amount of the total public service wage bill set aside for payment of accrued right at the first instance, and making arrangement for a sinking fund to pay all outstanding accrued pension right, upward review of penalty charges of 2% for non-remittances of employees’ pension contributions, granting the local governments full financial autonomy, decentralization and restructuring of National Pension Commission for effective service delivery, amongst others.
KEY WORDS: pension, employees, contributory pension policy, Defined Benefit Scheme.
