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DS Reviews of Commerce and Economics (DS-CE)

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Volume 1 | Issue 1 | Year 2024 | Article Id: CE-V1I1P103

The Contributory Pension Scheme (CPS) and Sufficiency of Retirement Benefits of the Low-Income Retirees of the Federal Public Service in Nigeria

Omotayo Johncally ABERE, Kudirat Adeola BANJO, Toyin Shafau SAKA

ReceivedRevisedAcceptedPublished
19 Aug 202424 Sep 202414 Oct 202425 Oct 2024

Citation

Omotayo Johncally ABERE, Kudirat Adeola BANJO, Toyin Shafau SAKA. “The Contributory Pension Scheme (CPS) and Sufficiency of Retirement Benefits of the Low-Income Retirees of the Federal Public Service in Nigeria.” DS Reviews of Commerce and Economics, vol. 1, no. 1, pp. 15-43, 2024.

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 a 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 the survey. Arising from the data collected and the analysis carried out using the consolidated public service salary structure, the comfort level of low-income retirees who spent 20 to 35 years in active service is nothing to write home about due to insufficient pension benefits due to the challenges investigated. The study recommends the implementation of a minimum pension derived with requisite modalities of 20 years as the minimum qualifying length of service and only a 10-year post-retirement subsidy.

Keywords

Contributory-pension-scheme, Low-income-retirees, Guaranteed-minimum-pension, Retirement-benefit.

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The Contributory Pension Scheme (CPS) and Sufficiency of Retirement Benefits of the Low-Income Retirees of the Federal Public Service in Nigeria