THE EFFECT OF NIGERIA'S CONTRIBUTORY PENSION SYSTEM ON EMPLOYEES' RETIREMENT CONFIDENCE AND RETENTION: AN EFFICIENT MANAGEMENT REFORM PERSPECTIVE

Toyin Shafau  SAKA; Babatunde Ashim  SOGUNRO; Olajide Solomon  FADUN

Toyin Shafau SAKA Department of Insurance and Actuarial Science, Lagos State University of Science and Technology, Ikorodu, Lagos, Nigeria.
Babatunde Ashim SOGUNRO Department of Actuarial Science & Insurance, University of Lagos, Akoka, Lagos, Nigeria.
Olajide Solomon FADUN Department of Actuarial Science & Insurance, University of Lagos, Akoka, Lagos, Nigeria.

Keywords: Contributory Pension Scheme (CPS), Retirement Confidence, Employee Retention, Pension Management, Employee Benefit

Abstract

The Contributory Pension Scheme's impact on Nigerian workers' retirement confidence and job retention is a pressing concern that necessitates efficient management reforms. The paper examined the impact of the Contributory Pension Scheme (CPS) on retirement confidence and job retention among Nigerian workers. An exploratory research design was adopted for this study, employing an adopted survey questionnaire to collect data from 92 staff members of the College of Applied Social Sciences, Lagos State University of Science and Technology, Lagos state. Descriptive statistics and inferential statistics (Structural Equation Model) were utilised to analyse data. The findings indicate that CPS has a favourable effect on employee retirement confidence and retention. Motivation of the employee, goal clarity in retirement, psychological factors, design of the pension scheme, income level, demographic factors, and organisational factors were established to affect employees' retirement confidence and retention in order to promote the governance and operational effectiveness of Nigeria's Contributory Pension System (CPS). The Pension Fund Administrators (PFAs) and regulatory institutions, such as the National Pension Commission (PenCom), must implement improved and more effective oversight mechanisms for promoting transparency and accountability. The management reform envisaged includes using high-level technology to automate processes, track contributions in real time, and disburse funds in a timely manner, which can help increase trust in the system and boost employees' confidence. The reforms must also focus on strict enforcement of compliance so that employers pay contributions on time and regularly.

Author Biographies

Babatunde Ashim SOGUNRO, Department of Actuarial Science & Insurance, University of Lagos, Akoka, Lagos, Nigeria.

Olajide Solomon FADUN, Department of Actuarial Science & Insurance, University of Lagos, Akoka, Lagos, Nigeria.

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