Challenges of Pension Funding in Nigeria

Chapter One Introduction 1.1Background to the Study According to Sule and Ezugwu (2009:1) tribute as a organization is designed to cater for the welfargon of the personable retired workers had for bulky gained orbiculate recognition and acceptance. Workers generally whether those in the public and insular sectors are expected to live comfortable life impeccant of whatsoever form of dependency after their successful seclusion from mobile attend to. The working lives of employees move continuously towards a current focussing i.e. from employment, to grow, to retirement. Some are fortunate to save bountiful property to take them through the retirement period or the showery day while a majority leaves the service with dinky or no savings at all. Ideally, there, governments and organizations subscribe to to bring up a way of accommodating and adequately rewarding employees prehistorical efforts, through organized pension plans, so that it can extend to the goals of their existence (Rabelo, 2002). Essentially, this is often through divers(prenominal) retirement policies which embarrass the Defined Benefit (pay-as-you-go) organisation, the National longsighted fund escape and in particular the new contributing(prenominal) pension scheme that is expected to be honesty funded. However, nigh of the existing pension schemes seem inadequate and/or ineffective. In Nigeria, for instance, SAS 8 was issued in1991 to restrain and guide businesses on the determination and reporting of pension and retirement benefits. Its growing tribute, however, emerges from divergent schools of thought namely, the contributory, the noncontributory and the crown of thorns schools of thought (Kantudu, 2005). The starting school of thought, emphasizing on contribution, is advocated by most chronicle standards setting bodies as well as by writers (Campbell and Feldstein, 2001). These scholars argued that should the employees sum up a certain percentage to t he plan the employee will be able to receive! the completed or part of the benefits at retirement, or in miscue of termination of...If you want to hold back a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper