THE IMPACT OF THE CONTRIBUTORY PENSION SCHEME ON EMPLOYEE RETIREMENT BENEFITS OF QUOTED FIRMS IN NIGERIA

This study seek to evaluate whether or not the contributory pension scheme has an impact on employee retirement benefit of quoted firms in Nigeria: to determine the relationship that exist between the impact of the contributory pension scheme on employee retirement benefit and standard of living in Nigeria.the study also assessed the relationship between pension cost and independent variable: total assets and profitability of quoted firms in Nigeria.

TABLE OF CONTENT 

  CHAPTER ONE:  INTRODUCTION 

1.0  Background of the Study              1 

1.1  Statement of Problem               5 

1.2  Objectives of the Study              7 

1.3  Research Questions                7

 1.4  Statement Research Hypotheses            7 

1.5   Scope of the Study                8 

1.6  Significance of the Study              8 

1.7  Definition of Terms                9 

References  

CHAPTER TWO: REVIEW OF RELATED LITERATURE 

 2.0 Pension Scheme in Nigeria: An Overview          14 

2.1 Prior Studies on Compliance With Pension Standards        16 

2.1.1 Concept of Pension Plans              18 

2.1.2 Objectives of Pension Plans              21 

2.1.3 Determination of Retirement Cost             22

 2.1.4 Pension Costs Recognition and Future Pension Liabilities       23 

2.1.5 Concept of Assets                 24

 2.1.6 The Concepts of Profits               25 

2.2 The Emergence of Pension Reform Act 2004          25 

2.3 The Objectives of the New Pension Reform          27 

8  2.4 Elements of the New Contributory Pension Scheme        27 

2.5 Institutional Framework                29 

2.5.1  The National Pension Commission (PenCom)        30 

2.5.2  Pension Fund Administrators and Pension Fund Custodians     30 

2.6  Investment of Pension Assets under the New Contributory Pension  Scheme                  31

 2.6.1   The Investment Guidelines              32

 2.6.2 The Assets Allocation Structures by National Pension Commission  (PenCom)                  33 

2.6.3  Risk Management Under the New Contributory Pension Scheme    35 

2.6.4  Identifiable Risks                37 

2.6.5  Pension Risk Management Operation Process        42 

2.7   The Benefits of the Contributory Pension Scheme        43 

2.8   The Implications of the Contributory Pension Scheme on Nigerian  Workers                  45 

2.9   The Challenges of the Contributory Pension Scheme in Nigeria     46 

  References                    

CHAPTER THREE: RESEARCH METHODOLOGY  

3.0  Introduction                  53 

3.1  Research Design                53 

3.2  Sample Size and Sampling Technique          54 

3.3  Nature and Sources of Data Collection          54

 3.4  Techniques of Data Analysis              55

 References                  

  CHAPTER FOUR:  DATA PRESENTATION AND ANALYSIS  

4.0  Introduction                  61 

4.1  Data Presentation and Analysis of The Student T-Test Result    61

 4.2  Data Presentation and Analysis of Pearson Correlation Coefficient  Result   66

 4.3  Data Presentation and Analysis of Regression         69 

4.4  Research Findings                 76 

9  References                     

CHAPTER  FIVE:    SUMMARY  OF  FINDINGS,  CONCLUSION  AND RECOMMENDATIONS  

5.0  Summary of Findings               80 

5.1  Conclusions                  82 

5.2  Recommendations                84

 References                 

Bibliography                   

Appendix I: SPSS Student Test Results 

Appendix II: SPSS Results of Correlation Coefficient        

Appendix III: SPSS Aggregate Regression Results  

Appendix IV: Criteria for Grading Application of Requirements of Statement of Accounting Standards 8 (SAS 8) by Firms in Nigeria   

Appendix V:  Summary of Comparison of SAS 8 (Level of Compliance) with Annual Reports and Accounts of Quoted Firms, 1998 – 2007

 Appendix VI:  Aggregate Average Level of Compliance with SAS 8 for 1998 – 2004 (Before Pension Reform Act, 2004) (After Pension Reform Act, 2004)             

LIST OF TABLES  

Table 2.1: Pension Investment Guidelines             34

 Table 4.1: Requirements of Statement of Accounting Standard 8 (SAS 8)    62

 Table 4.2: SAS 8 Compliance Index              63 

Table 4.3: The Student’s T-Test Data             64 

Table 4.4: Student’s T-Test Result               65 

Table 4.5: SAS 8 Compliance Index              67

 Table 4.6: Correlation Coefficient Data            68 

Table 4.7: Pearson Moment Correlation Coefficient Results       68 

Table 4.8: Pension Funding Disclosure in Relation to Total Assets and Profitability               70 

Table 4.9: Aggregate Values of Pension Funding Disclosure in Relation to Total Assets and Profitability             73

Table 4.10: Aggregate Regression Analysis for Hypothesis 3       74