CONTRIBUTORY PENSION SCHEME AND EMPLOYEES’ PRODUCTIVITY IN THE NIGERIAN PUBLIC SERVICE: A THEORETICAL REVIEW
DOI:
https://doi.org/10.55197/qjssh.v5i5.447Keywords:
pension, contributory pension, employee productivity, public serviceAbstract
The focus of this paper is the understanding of the impact of the contributory pension scheme on workers productivity and its importance considering the fact that productivity of workers is key determinant of organizational efficiency and effectiveness. Hence, the significance of increasing levels of productivity for the well-being of nations, sectors, enterprises, and individuals cannot be overstated. Pension plays a crucial role in enhancing the well-being of workers during their elderly years by providing them with a source of income. Also, pension encourages workers’ loyalty to continue working for the organisation and thereby lessens employers’ cost of recruitment and training associated with high labour turnover. The paper adopts the exploratory and content method analysis of various relevant literatures to review the concepts of contributory pension scheme and employee productivity in the Nigerian public service. It concludes that the implementation of the scheme is hampered by challenges of delay in payment of retirees’ benefits, lack of adequate investment of pension funds and low monthly pension paid to pensioners. Also, retired employees in the Nigerian public service find it difficult to access their retirement benefits as and when due, thereby making life difficult for them and the ugly situation occupied the minds of workers in Nigeria and has contributed to low productivity in the service. The review of the Act establishing the contributory pension scheme be done to address the challenges bedeviling its operations. Specifically, the National Pension Commission be empowered to regulate pension operations, criminalize non-payment of benefits to retired employees, enhance fund management, increase employee involvement, ensure profitable investment, and extend pension coverage to the informal sector.
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