Factors that Permeate the Performance of Pension Funds in Nigeria: Evidence from Ekiti State

Abstract

The study investigates the factors that permeate the performance of pension funds in Nigeria. The study specifically addresses the effects of risk assessment of staff, age of pensioners, and contributions of pensioners towards the performance of the pension fund (Timely payment of pension) in Nigeria. It employed a quantitative research method, using questionnaires administered to obtain data from primary sources. The Microsoft Excel application was intermittently used to analyse the information, while E-View version 9 was used to carry out regression analysis. The results indicate that administrative staff of PFAs were not subjected to criminal record checks before, during, and after their interview for employment, and when employed by the PFAs, such staff are permeated by peer groups to commit fraud so as to live an extravagant lifestyle. The study further establishes that a lengthier time of contribution secures the pension fund’s sustainability through PFAs as a lengthier focuses on increasing fund availability for investment when compared to their elder counterparts, younger members participate for a lengthier duration of time and this serves as a bonus to PFAs to cushion the effects of the payments for the elderly with long life which better their social, infrastructural, healthcare facilities and welfare packages for life sustenance. In addition, early remittances of collected contributions from employers facilitate quick benefits processing and payments, which implies that a delay in remitting the morally obligatory contributions slow down the payment of incentives. A functional, dynamic supervision, review, and re-evaluation of the PFAs with a strong feedback mechanism for proper compliance with guidelines are to be put in place and strengthened. Strong legislation should be promulgated to guide against the mismanagement of PFs of Nigerian employees by the PFAs.