THE BANE OF PENSION CONTRIBUTIONS’ REMITTANCES AND ITS IMPLICATION ON STAFF RETIREMENT IN THE FCT AREA COUNCILS, ABUJA

Abstract

Pension’s schemes management in Nigeria over the years has been muddled by multiple problems arising from which retirement became dreaded by workers. This study analyzes the incidences, causes, effects and the implications of non/irregular remittances of pension contributions in the Federal Capital Territory (FCT) Area Councils, Abuja. The study adapts descriptive research design method and obtained data from primary and secondary sources. The primary data collected was analyzed descriptively with the aid of Ms Excel and Statistical Package for Social Sciences (SPSS) software version 21, and the results presented in frequency percentage tables with explanations. The Incidences of Non-Remittance of Pension Contributions shows that the Unremitted Contributions of FCT Area Councils is counting Billions of Naira. Among the major causes of non-remittance of pension contributions identified in the study is double Personal Identification Numbers (PINs), 96.6%, Wrong or Incorrect PINs (93.1%), Delay in submission of pension deductions for schedule’s preparation (79.3%), lack of political will, paucity of funds, and weak enforcement among others. The effects of non-remittance of Pension are: Psychological trauma/hypertension by staff at retirement (96.6%), Dampen staff morale and performance (93.1%), Shortage in investment outputs of the RSAs (75.9%). The Implication of the findings shows Low RSAs (89.7%), Increase in poverty of staff at retirement (93.1%), early and untimely death of Retirees (93.1%), Low productivity (79.3%) and Low retirement benefits (89.7%). To boost public confidence in the Contributory Pension Scheme, the National Pension Commission (PenCom) should consider strict measures to ensure full compliance with the PRA, 2014; PenCom and Pension Fund Managers to compel Employers to remit pensions’ arrears in principal and interest penalty; Set up Pension audit system to ensure compliance processes by the employers, and building robust clients’ records regularly through Data recapturing exercise by the Pension Fund Managers to avert crises of wrong and double PINs.