The Impact of Pension Enhancement Methods on the Well Being of Retired Civil Servants in Osun State, Nigeria

Abstract

Purpose: The paper examined the impact of Pension Enhancement methods on the wellbeing of Retired Civil Servant s in Osun State. Methodology: The Author also interacted with Twenty Retired Civil Servants who are presently enjoying the Pension Enhancement Packages. Furthermore, an in depth interview on some key holders in the pension industry was conducted. Majorly, quantitative method of research was adopted for this study. Findings: The findings from the study revealed that there was a little increase in pension income of Retired Civil Servants. In addition, the increase in monthly stipend is not commensurate or in tandem with the present economic realities in Nigeria. It was also found that the problem of removal of fuel subsidy and high exchange rate of Nigeria currency against other currencies like American dollar and British pound sterling has eroded the little increase in the pensioner’s stipend. The study concluded that the present Pension Enhancement Method is yet to have a meaningful and positive impact on the wellbeing of Retired Civil Servants. Unique Contribution to Theory, Policy and Practice: The issue of Retired Civil Servants who are collecting their monthly income using the Life Annuity Method should be revisited by the National Pension Commission. As a result of the removal of fuel subsidy in Nigeria, the various State Governments were giving out certain sum of money to their workers in form of Palliative measures. The Retired Civil Servants should also be considered for palliative packages. The Retired Civil Servants should be allowed to assess 20% of their gains or profits that is in the Retirement Savings Account. The National Pension Commission should direct the Pension Fund Administrators to pay the lump sum to the Retirees at the commencement of every new enhancement adjustment.