CONTRIBUTORY PENSION FUNDS AND WORKERS FINANCIAL SECURITY IN OGUN STATE, NIGERIA

Abstract

An employee who has worked for an organization for some years is entitled to some benefits which could be in form of gratuity and pension payable to such employee by its employer or an agent at the time of retirement or withdrawal of service. This paper examined how contributory pension funds contribute to the financial security of civil servants in Ogun State. The descriptive survey research design of the ex-post facto type was used for the study. The population of the study was made up of civil servants in Ogun State, Nigeria. Purposive and random sampling techniques were used to select one hundred and eighty respondents from five ministries/departments. The main instrument used was a self-constructed questionnaire tagged “Contributory Pension Fund and Workers Financial Security in Ogun State, Nigeria” with three sub-sections. Mean, Standard deviation and One-way Analysis of variance (ANOVA) were used to analyze the data collected at 0.05 level of significance. Findings of the study show the contributory pension scheme has a significant effect on workers’ savings. Also, contributory pension scheme has significant effect on workers’ investment. Based on these findings, recommendations are: pension fund administrators should educate the public more; especially the civil servants on contributory pension scheme so that they can have more implicit trust in the savings plans of the commission. Also, there should be an increase in investment outlets of pension funds to ensure that investible pension funds are not limited to few investment classes which might lead to diminution of income of employees.