Abstract:
Pension scheme is not new in Nigeria. Before the new pension scheme, there were pockets of legislations regarding pension matters, which were not comprehensive and could not address the needs of pensioners because they were deficient of what is seen globally as the characteristics of an ideal pension scheme. Unfortunately, the introduction of the Pension Reform Act 2004 that was meant to correct the wrongs of previous schemes, witnessed increased voluntary retirement from public service. The purpose of this research therefore, was to investigate workers’ understanding and perception of the Pension Reform Act 2004 and to find out the influence of some socio-demographic variables on understanding and perception of the Act. The study was carried out using the entire staff of the various prison stations in Enugu State Command (600 respondents for the questionnaire, 12 for in-dept interview and 48 for focus group discussions). Information gathered were analyzed using percentage (%) while chi-square (X2) was adopted in testing the hypotheses. The study found out that there was lack of understanding and wrong (negative)perception of the PRA 2004 as a result of inadequate sensitization and education on the administration and modus operandi of the new pension scheme. Five hypotheses were proposed and tested. The study also revealed that sex,rank/cadre, level of education and station of respondents had no significant relationship with understanding while age and length of service of respondents had slightly and highly significant relationship respectively with understanding of the scheme. Surprisingly, sex,rank/cadre, and level of education had significant relationship with degree of perception while age and length of service of respondents had no significant relationships with degree of perception as revealed by their chi square test values. Conclusively, there is no relationship between understanding and perception of PRA 2004. These findings have clear implications for social policy and social work practice in Nigeria. It therefore revealed the need for regular education and sensitization of workers on the new pension scheme.
