Nigeria s pension fund is said to have over n6 trillion in funds under management and about 7 million nigerians as contributors, so this is as important as it gets. The objective of this study is to highlight the differences between 2004 and 2014 pension reform act in nigeria. Nigeria new pension reform law brings change for empl. The active labour force of a nation constitutes the main production asset of. Nigeria new pension reform law brings change nigeria new pension reform law brings change signed into law on july 1, nigeria s pension reform act 2014 requires private sector employees, under certain conditions, to participate in a new compulsory contributory pension scheme. The pension reform act 2014 newsletter july 2014 1. Notice on pension reform act 2014 we have taken extra steps to ensure the safety of your information by acquiring the iso 27001. For nigeria, it has been a staggered history of pension since 1951, through. I there shall be established for any employment in the federal republic. Pension reform act, 2014 the pension reform act was sign into law by president goodluck jonathan on 1 july 2014. The new pension reform act 2014 replaces the old pension reform act of 2004 and.
Nigeria s pension reform of 2004 was necessitated by the myriad of problems that plagued the payasyougo schemes in the public sector and the varying types of pension schemes that existed within the private sector, which resulted in retirees not getting their benefits. Subject to any modification before gazetting, the commencement date is 1 july 2014. The act makes provisions for the repositioning of the pension. Guidelines for life insurance policy for employees. Reform act governs and regulates the administration of the contributory pension scheme for both the public and private sectors in nigeria. Pension reform act, 2014 an act to repeal the pension reform act no. The pension reforms act, 2004 which introduced the defined contribution pension scheme with its regulatory and agency bodies such as the national pension commission pencom, pension fund. Pdf the objective of this study is to highlight the differences between 2004 and 2014 pension reform act in nigeria. Nigeria s contributory pension scheme which was established under pra 2004 recorded tremendous success in its first decade of operation. As a general observation, some key provisions in the 2012 regulations have been retained in. The pension reform act 2014 the act was enacted by the national assembly of the federal republic of nigeria on july 1, 2014 to repeal the pension reform act no. Pension reform act 2014 the good, the bad and the ugly. Section 9 3 of the pension reform act 2004 the act requires every employer, to which the act applies, to maintain life insurance policy in favour of the employee for a minimum of three times the annual total emolument of.
This study assessed the expectations of employees of micro enterprises in abeokuta metropolis of ogun state, nigeria on the pension act 2014 as amended. In this article, we will highlight the most important changes reflected in the pension reform act 2014 explaining what the implications are for employers and employees. It established for the public service of lagos state, a contributory pension scheme for the payment of retirement benefits of employees in the service to whom the scheme applies. Full details of the pra 2014 can be downloaded from. An assessment of the effectiveness of the nigerian 2004 pension. Document on 1 july 2014, president goodluck ebele jonathan signed into law the new pension reform act 2014 pra 2014.
We have obtained a copy of the new pension reform act as signed by president goodluck jonathan. Part i establishment and objectives or contributory pension scheme for employees inti ie public and private sectors 1. The lagos state pension reform law lagos state pension. Enacted by the national assembly of the federal republic of nigeria. The key objectives of the reform are to ensure contributors receive their benefits as and when due and to assist improvident individuals to save in order to cater for their livelihood during old age. The pra 2014, which repeals the pension reform act no 2 of 2004, governs and regulates the administration of the contributory pension scheme the scheme in nigeria. Pension reform act 2014 key highlights and salient points. Like the repealed act, the new pension reform act governs and regulates the administration of the contributory pension scheme for both the public and private sectors in nigeria. Full page photo stanbic ibtc pension managers nigeria. The first private sector pension scheme in nigeria was set up for the employees of the nigerian. Pension reform act 2004 25th june, 2004 enacted by the national assembly of the federal republic of nigeria commencement.
Short title 3 national assembly service act, 2014 page a1526 printed and published by the federal government printer, lagos, nigeria fgp 9072014 1,200. Pension reform act governs and regulates the administration of the contributory pension scheme for both the public and private sectors in nigeria. The objective of the act is to create a more effective pension administration system in nigeria, to. And for related mainers enacted by the national assembly of the federal republic of nigeria iobjectives and application t. On 1 july 2014, president goodluck jonathan signed into law the new pension reform act 2014 which repealed the pension reform act no. Pension reform act 2014 national pension commission. Pdf an appraisal of the concept of trust in the nigerian. With a survey research method, a total of 370 employees of micro enterprises were randomly. Pension reform act 2014 the good, the bad and the ugly pwc. Contributory pensions scheme vs pension reform act 2014. As part of our continued efforts to share information on the contributory pension scheme cps, we present key highlights of the pension reform act 2014 recently signed into law by the president. Attached below are our tax alert on the subject highlighting the key issues and a copy of the new law. This newsletter summarises some of the key provisions contained in the version of the act signed by the president.
Breweries in 1954, which was followed by united african. Pdf pension reform act 2014 and the future of pension. Signed into law on july 1, nigerias pension reform act 2014 requires. Pdf on aug 8, 2016, nuel oji and others published an appraisal of the concept of trust in the nigerian pension reform act 2014 find, read and cite all the research you need on researchgate. The lagos state pension reform law 2007 was signed into law on 19th march 2007. The pension reform act, 2014 repealed the 2004 pension reform act, no. Rendering of accounts 1 the bank shall render periodic account on the fund to the central bank of nigeria, in such form as the minister may direct. A number of major changes are introduced in the new law with the pertinent new pension rules. To achieve this objective the paper divided into four parts. Pra 2014 serves as the enabling legislation for the administration of the.