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The Contributory Pension Scheme (Cps) and Sufficiency of Retirement Benefit of the Low Income Retirees of the Federal Public Service in Nigeria

Author

Listed:
  • Omotayo Johncally Abere

    (Department of Actuarial Science and Insurance, Lagos State University of Science and Technology, Nigeria)

  • Kudirat Adeola Banjo

    (Department of Actuarial Science and Insurance, Lagos State University of Science and Technology, Nigeria)

  • Toyin Shafau Saka

    (Department of Actuarial Science and Insurance, Lagos State University of Science and Technology, Nigeria)

Abstract

This study examined the level of sufficient retirement benefit under the contributory pension scheme emanating from the pool of savings contributed that can suffice to provide the minimum needed livelihood. The secondary data of all pension contributions and retirement benefits were retrieved from series of publications of PenCom from the years 2004 to 2022. The primary data population consists of 1316 retirees. EasyFit 5.6 Professional Software together with the Least Square Model, accumulation and annuity formulae was employed to analyse the secondary data and the responses from the respondents during survey. Arising from the data collected and the analysis carried out using the Consolidated Public Service Salary Structure, the level of comfort of low income retirees who spent 20 to 35 years in active service is nothing to write home about due to insufficient pension benefits as a result of the challenges investigated. The study recommends the implementation of minimum pension derived with requisite modalities of 20 years as the minimum qualifying length of service and only 10-year post retirement subsidy.

Suggested Citation

  • Omotayo Johncally Abere & Kudirat Adeola Banjo & Toyin Shafau Saka, 2023. "The Contributory Pension Scheme (Cps) and Sufficiency of Retirement Benefit of the Low Income Retirees of the Federal Public Service in Nigeria," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 9(3), pages 35-62, August.
    • Handle: RePEc:mgs:ijoied:v:9:y:2023:i:3:p:35-62
    DOI: 10.18775/ijied.1849-7551-7020.2015.93.2003
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    References listed on IDEAS

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    1. Modigliani, Franco, 1986. "Life Cycle, Individual Thrift, and the Wealth of Nations," American Economic Review, American Economic Association, vol. 76(3), pages 297-313, June.
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    More about this item

    Keywords

    Contributory-pension-scheme; Low-income-retirees; Guaranteed-minimum-pension; Retirement-benefit;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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