TITLE:
Managing Pension Risks in Public Sector: A Study of Lagos State Government Public Service
AUTHORS:
Ahmed Ishola Kotun, Abayomi Olarewaju Adeoye, Waidi Adeniyi Akingbade
KEYWORDS:
Accrued Right, Actuarial Valuation, Escrow Fund, Group Life Policy and Remittance
JOURNAL NAME:
Journal of Financial Risk Management,
Vol.12 No.3,
September
28,
2023
ABSTRACT: This study examined
contributory pension scheme and the risks entailed in management of retirement
benefits of Lagos State Public Service workers. Although at the inception of
the scheme in Nigeria, government workers were not duly informed and sensitized about the new pension scheme but they
could not out-rightly refuse its acceptability with the fear of not losing
their pensionable employment. This however, led to wrongly enrolment into the
scheme by those who were exempted from the scheme as of the
commencement date. Survey research design was adopted for the study. Population
of the study covered potential retirees who attended bi-annual pre-retirement seminar organised by Lagos State Pension Commission. One Hundred and Eighty-Seven (187) was
the sample size for the study and questionnaires were proportionately
distributed to selected respondent, using convenient sampling techniques.
Out of the total number of the copies of the questionnaires administered, One
Hundred and Sixty-Six (166) copies of questionnaire were correctly filled and
retrieved representing 88.77% and were used to analyse data. Analysis was done
using Correlation Analysis with the aid of Statistical Package of Social
Sciences (SPSS). The findings revealed that there is
a positive correlation between employee’s contributions and remittances. Also,
there is a moderate positive correlation on influence of accrued rights on
employees’ retirement benefits. Likewise, escrow fund has positive relationship
with employees’ retirement plan. The study recommended that there should be
adequate review of retirement benefit payment policy of those in active service
before the commencement of the new contributory pension scheme to avoid old age
syndrome and acquaintance of the pension to life after retirement. Also, the
need for upward review of the meagre called salary for Public Service Workers
compared with their counterpart in corporate organisation for them to have
robust retirement package.