INTRODUCTION
1.1
Background
Of The Study
In Nigeria Local Government System the
issue of pension has come to limelight
to the knowledge of an average
man in the country. It is equally unequivocal that a great number of
people’s life depend on their monthly
retirement pension and therefore it should be an issue of paramount importance to
the society at large.
The
ultimate aim of all workers in
any well established organization be it
federal, state, company or local government is to be fend for
oneself on retirement from service
or to obtain some relief in the event of being
incapacitated or even for the relations
to claim some benefits after death.
Pension and gratuity suppose to serve
these purposes.
Pension
is a periodical payment made
especially by government, company or employer in consideration of past service
or relinquishment of right and gratuity on the other hand is a
fixed jump-sum payment
usually granted immediately upon
the retirement of an officer . Concise Oxford Dictionary: 1964 and
from a legal perspective, no arm of government ever existed without an
instruments or existed without them
Pension programmes in Nigeria have
generated lots of problems and concern
both locally and abroad. With elderly
people queuing for long hours and
some dying in the process hours and some
dying in the proves for just their widow’s
mite which they are entitled to
after spending their active life
in the service of their various organizations, it became
necessary to examine the laws that governed pension administration
and come up with recommendations
that would ensure prompt payment of pensions also provide adequate funds for such payments
in order to forestall such erratic and
irregular payment problems.
The
Pension Reform Act, 2004 (“The
Act”) was passed into law on the
25th June 2004 by the
national Assembly, repeating the
pension Act 1979 and
amending the NSITF Decree
of 1993 to achieve
the above objective
Although
the reform remains a very
positive move to ensure
that pension in Nigeria are effectively
administered, the system of operation,
and even the act still posses
some challenges
Pension administration has come to be as it is to deal with a wide spectra of life and management of pensions who served and spent major part of
their youthful period in the service of the state or local
governments. The trend and enlargement of the local government made this
study worthwhile as to delve into
modalities and ways to meet up with
the challenges and demands possed by this ever increasing number of men and women
who are on the exist form the
service.
The erroneous impression about
retirement and pension which is fast
gaining a higher dimension in the circle of those about to retire is a major focus of the study moreso to suggest ways toward the amelioration of sufferings of the retirees and channel the
burden into government through
a functional approach.
In
1989 the provisional ruling council established
local government pension
boards in each state of the
federation. Each board was charged
with the responsibility of
paying the retiring
benefits (pensions and gratuities) to
the local government retires.
In
Ebonyi State, the local government
pension board was established a
in 1999
by the state edit No. 10
of 1999. The edit
contains the ingredients of pension Act 102 of 1999. The contents of pension Act has
goodwill for local government retirees but
pension administration of Ebonyi State Local Government
is not taking its right part,.
The emphasis on functional approach to
pension administration in Nigeria local
government and the
attainment of all the goodness that is
involved in building a virile
pension office staffed with dedicated
and more responsible officers who will cater for the pensioners is advocated
in this study.
1.2
Statement
Of The Research Problem
For decades, many people who retired from the public service especially the local
government councils complain
bitterly about the problem they encountered or are still encountering in terms of their monthly pension and
gratuity. This equally gives those about
to retire some
concern as to what is going to be
their fate on retirement.
The
reason(s) why government has not taken a decision action
toward a final decapitation of the heinous
problems of the people too old
for work or be used for their original
purposes is rather strange and
difficult to explain. On the other
hand, is government deaf or blind
over increasing number of men and women who slumped and died
in the bid to collect retirement
pension allowance
It will be gross insensitivity of
government to the plight of men and
women who served in their various capacities languish instead of ensconced
in this later
part of their lives or could it
be that government is no longer capable of
fulfilling its obligation to retiring officers and is gradually
phasing out pension and
gratuity? The issue of pension is now a common feature on the faces of national deities , radio
commentaries and so may magazines.
The deplorable took of dejection on the false of the retires is enough
on the faces of the retires is
enough indication that all is not
well and by the complaints of these men and women, it is adduced that:
a.
The processing of retirement files are unduty
destroyed
b.
There
is tack of commitment to duty by the pension administrators
c.
Pension
fund is divested at Latin point before reaching the retirees
d.
Monthly
pension allowance is not enough to sustain the pensioners
e.
Unskilled
and indolent officers dominate the staff
strength of the pension office
f.
The
absence of supervision and check by
higher authorities is a major cause of laxity and ineptitude on the part of the pension
administrators.
Anwana: 1996
summed up that the dreaded mammon in pension administration is shortage of
skilled personnel and general staff.
1.3
Objectives Of
The Study
The
broad objective of this study is
to advocate a functional approach to pension administration in Nigeria local government system. It is also aimed
at getting down to the root cause of prevalent problems
militating against proper pension
administration through the application of an empirical
chagnose of the bureaucratically processes of the
bureaucratically processes applied
in pension administration. The study is
set to achieve the following specific objectives:
1.
To identify whether the pension administrators
are living up to expectation and equally
the problem facing them.
2.
To
examine the strength, caliber and experience
of the staff deployed to
carryout these jobs
3.
To
describe the extent and type
of materials at the disposal of the workers in the pension office.
4.
To examine the actual system and working
environment under which the pension worker
operate
5.
To establish the degree of neglect/ disregard to
duties all to the detriment of the
retirees.
1.4 Hypotheses
on
the basis of the foregoing discussions on functional approach
to pension administration in Nigeria
local Government system, and in accordance with the
problem under study, the research
wishes to formulate the following hypotheses.
|
HO:
|
The
pension administrators are not giving
up to expectation and there are problems
facing them
|
|
H1:
|
The pension administrators are
giving up to expectation and there are no problems facing
them
|
|
HO:
|
There
is no degree of neglect/disregard to duties by pension administrators that is
detrimental
|
|
H2:
|
There is
degree of neglect/disregard to
duties by pension administrators that
is detrimental to retirees
|
|
HO:
|
The
pension administrators deployed has no strength, knowledge and experience
to carryout pension administration
duties
|
|
H3:
|
The
pension administrations deployed has
the strength, knowledge and experience to carryout pension
administration duties.
|
|
HO:
|
There
is no availability of materials at the disposal of
pension administrators
|
|
H4:
|
There
is availability of materials at the
disposal of pension administrators
|
1.4
Scope and Limitations of the Study
Basically there are several issues
related to pension administration in Nigeria as a whole but this research shall
be limited to the prevalent
problems militating against proper
pension administration in Nigeria local
government system.
Notwithstanding, during the research work the researcher encountered many problems
at the process of writing project
which some of them are :
Fund: Lack of fund has helped in hampering the progress of the research work in as much as there is no money
to run the affairs or transporting
to appropriate office to collect materials for the project.
Unavailability of Materials: Unavailability of
martins for the fact that the government officials were
not always on seat who should have provided adequate and useful
information, and the reluctance and un-cooperative attitude of some of them in releasing data or information
relevant to the study.
Time: thirdly, during the research work the
researcher was faced with combing civil service
work and writing of the
project at the same time.
1.6 Significance
of the Study
This
study relates to a practical problem with a wide range of
administrative and resource management.
In essence, the
significance of this study
cannot be overemphasized if one
considers the fact that the issue of
pension problems touches the life of
one, families, relations and the society in general.
Therefore, pension is a life
matter and should be viewed with
every seriousness as a shabby handling of
its matters might perpetuate discomfort and lose of life.
Thus, this study is significant in the following
ways:
1.
It
will serve as a guide and source of information to impart fair knowledge and
proffer solutions to problems especially
to pension fund managers for the
improvement of their job.
2.
The entire
erudite world of civil or rather
public servants will be greatly enriched and
equipped with knowledge in the course of their impending retirement
3.
Pensioners
as well will benefit from this study as to be well informed in pension
matters as it affects them.
4.
Finally,
this research work will be a foundation for further research works on this
topic or other related issues
1.7 Theoretical
Framework
To
undertake this study, the research work
adopted motivation theory . one of
the theories under content approach of
motivation theories is the
Maslow need hierarchy theory developed
by Abraham H. Maslow
Since theories are integrated set of
propositions intended to explain
certain phenomenon, intended to explain
certain phenomenon, the adopted
theory of motivation will be of
great importance and apt to explain why men work. Human linetives are based on needs whether
consciously or sub-consciously felt. Some
are primary needs such as the physiological requirement for
water, air, food, sex, sleep and
shelter other needs may be regarded
as other needs may be regarded as secondary, such as self –esteem, status, affiliation with others, affection, giving, accomplishment and
self assertion. These needs vary
in intensity and over time with various individuals Harold Koontz: 1980.
Bereleson
and Steiner are quoted in he definition
of the term motive as:
The inner state
that energizes activates or moves (hence motivation) and
that direct or channels behaviour towards goals.
In other words. “Motivation” is a general term applying to
the entire class of drives, desire,
needs, wishes and similar forces, Harold Koontz: 1980. Further the theory of motivation is
buttressed by using Vroom’s “Epectancy Theory” forward the understanding of
motivation Vroom suggested that:
A
person’s motivation forward an action at any time would be determined by his or
her anticipated by his or her anticipated values of all the outcomes (both
negative and positive) of the action multiplied by the strength of the person’s
expectancy that the outcome would yield the desired goal.
Nwachukwu (1988) in his own contribution
sees motivation as:
An
internal psychological process whose
presence or absence is inferred from observed performance.
The essential element of these
theories are that people will be
motivated to do things to achieve some goal to the extent that they expect that certain actions on their part will help them achieve the goal, much the same as what martin lather
observed centuries ago when he said
that “everything that is done in
the world is done in hope”
Nweke
(1989) sport lighted
some of the ingredients
of Maslow’s theory of motivation
which deals with the self
actualization or self
fulfillment needs to achieve the potentials within self for
maximum self development and
creativity and self l expression.
Towing
the part of basic needs, Bruce E moon: 1991 accepted basic needs as a developed goal, but
commitment to the meeting of basic needs
does not entail commitment
to any particular strategy for brining
it about.
The above theory strives well in a developed and farourable
economy but the Nigerian
case is a negation and has anchored the strategy for the retired
person on the paltry he
receives as pension. In full
consideration of the situation,
Streeten (1981) in his challenges, that “ the measure of a society is the way it
treats its poor” sticks a resonant chored even if
those threatened by it stop short of
subscribing to the “idea that
the basic needs of all should be satisfied before
the less essential needs of a few”
The
present day worker, without
mincing words has his or her hope
anchored on pension for survival
after retirement as much could
not be achieved during the working
days therefore, the above theories corroborate
the fact that most pensioners and
even those still in service work and crave
for the
actualization of what Maslow called the self fulfillment needs and a better ending of their career service or blissful
retirement period.
1.8 Definition
Of Terms
1.
Local
government: it means a political
authority set by either
a national or state governments,
as a subordinate authority
for the purpose of dispensing or decentralizing political power.
2.
Pension:
This means a periodical payment made especially by government , company
or employer in consideration
of the past
services rendered by retirees
3.
Pension
fund: It means money accumulated for the payment of pensions
to workers after retirement
4.
Pension
plan: This is a program established
by a company, labour union or
other organization that provides income for workers after retirement
5.
Pensioner: this is a person who is receiving a pension, especially from
the government an old-age
pensioner
6.
Pension
scheme: this is a system in which
employee and employe pay regularly into
a pension fund while the former
is employed
7.
Pensionable:
it means somebody who has been giving
the right to receive a pension : people of pensionable age