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ABSTRACT

This study has been focused on the applicability and sustainability of pension administration as it affects employee performance and overall efficiency in Kaduna Polytechnic, Kaduna. Two hypotheses were formulated and tested; thus have: H0: That the pension administration has no impact on employee morale and performance. H1: That the pension administration has positive impact on employee morale and performance. The study also reveals existing literatures on the theory of pension administration; its forms, advantages and disadvantages. The research instruments used for this study were questionnaire and persona interviews. Data were presented in tables and percentages and analysis were made using chi-square to determine the outcome of the study with regard to existing the hypothesis.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

The pension and gratuity which are normally goes to retired employee have been in practice in the advanced western countries, which gradually came into our under developed countries, since then during colonial regime. Pension is a stated allowance or amount of money paid regularly on monthly basis to a person on his retirement from service. 

Gratuity: This is a sum of money paid to a worker or military personnel on retirement or discharge from service. The amount is calculated according to the years of service of the individual concerned.

Pension was not therefore the automatic entitlement of a retiree. However, several reviews have been made to pension ordinance in 1979, 1992 etc. It was the review of 1993 pension rate that other fringe benefits from part of total annual emoluments up till now. Such benefits include utility allowance and meals subsidy as per established circular Ref. No: 363216/51/X/702 of 25th January 1993. It is also pertinent to note that all retired officers (servants) were paid uniformly based on the level of which an officer retired. But review of 1993 brought a disparity in the amount paid to retiree officers in the federal and state government. An evaluation of administration of pension and gratuity schemes in the public service generally indicates some militating factors against prompt payment of retirees.

Every person employed originally works for several number of years up to a specific year, would one time be retired of his post and given a name PENSIONER or RETIREE at this stage, he starts to be collect meager amount monthly, collect pension. One is to be retied if he/she is not working full time and derives at least the largest portion of financial support from the public or private pension payments. It designate the period in life when one’s role as a paid worker ceases. However, the attitude of the beneficiaries over long period of time has called researchers to fish out problems associated with the system of payment and equally suggest valuable solution to the improvement of the system. According to Pension Decree No. 102 of 1979, Section 4(i) the statutory age of retirement for public servant is (60) while judicial officers retires at the age of (65). 35 years of service, whichever is earlier.

In Nigeria, where the government is the largest employer of labour, its policies are equal widely adopted by independent industry and commercial organization. The impact of payment of gratuity is almost universal, even if an employee received large or huge sums of money during his active working services. Yet income accruing to him after the service will probably decrease depending on the level he/she retires on. It is pertinent to note here that retirees are paid based on the schedule for the computation of gratuity and pension. If an employee has used his or her job to maintain self esteem identity and feeling of competence his/her psychological well-being can be jeopardized by feeling that a valued career is over.

Haddrome and Marizel (1983) observes that a discruption in job security represents a loss as profound for some individuals as the loss of a cored one and those employee who loose their jobs need support in their effort to work through a process of grieving. This is no less true for people who retire than those who find themselves suddenly unemployed. It has been generally said and believed that the basis for the conduct of a research is as a result of the existence of a problem and the desire to find lasting solution to the problem.

1.2    STATEMENTS OF THE PROBLEM

The pension administration is characterized by some inadequacies as a result of mismanagement, corruption and incompetence of the some pension administrators. This bad situation is a set back to national development because some pensioners will have to beg for what is rightly belong to them, unlike what is obtainable in other uncorrupt countries. However, as mentioned or highlighted above Pension administration in Nigeria is characterized by some problems some of them are illustrated.

i)  CORRUPTION: Many pension administrators in Nigeria are in the theory of quick money syndrome they tend to embezzle money in their possession at the detriment of the beneficiaries.

ii)  LACK OF COMPETENCE: In competence personnel are often saddled with the critical task of computing pensions lists and accounts, this will no doubt result in wrong placement of document and misleading information.

1.3    OBJECTIVES OF THE STUDY

The objectives of the study on the administration pension and gratuity scheme in the public service and Kaduna polytechnic can be analyzed as follows:

a)  To examine various policies in respect to the pension payment system in Nigeria.

b)  To identify the problems encountered in the system of disbursement of pension and gratuity.

c)  To assess the effectiveness and efficiency of the administration of the pension scheme in the public services.

1.4    RESEARCH QUESTIONS

i)  Does the government introduced good policies that might bring about systematic change in the payment of pension and gratuity?

ii)  What are the problems encountered in the disbursement system of pension and gratuity in Nigeria?

iii)  Is there effectiveness and efficiency in the administration of pension and gratuity scheme in the public services?

1.5    SIGNIFICANCE OF THE STUDY

The study will be of great significant to both the staff of Kaduna Polytechnic, the institution itself as well as the general public.

a)  To the Staff of Kaduna Polytechnic

The study will be significance to the staffs of Kaduna Polytechnic, since it will bring about some possible solution to their problems in the administration of pension and gratuity. And also will help them to prepare effectively before their retirement.

b)  To the General Public

On the part of society in general, this study could enhance the high productivity among the workers in the public sectors. Since the possible solution to some problems in the administration of pension and gratuity have been suggested.

It will be, if applied correctly improve the living standard of the general public, as this will enable workers to have reasonable plan for future.

c)  To Kaduna Polytechnic Pension and Gratuity Section

The significance of the study equally extends to the department of pension and gratuity, Kaduna polytechnic in that, the recommendation can be of great importance to them which can enhance great improvement in the preparation of retirement benefits and other office matters.

d)  To the Future Researchers

The study will be significant to future researcher who will carry out another research on this topic, it will serve as research materials.

1.6    SCOPE OF THE STUDY

The scope of this research work or study is restricted to the administration of pension and gratuity in Kaduna Polytechnic from 2006 to 2011.

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