The research work investigated the effect of current pension fund scheme on job selection and staff productivity. The objectives of this study were to examine the relationship between pension fund and job selection, examine the relationship between old and new pension scheme, as well as determine the effect of new pension fund scheme on staff productivity. Three research questions and three research hypotheses were raised, frequency tables, percentages, weighted-mean and z-test was adopted for data analysis. The research was conducted using primary data obtained from a well structured questionnaire. The questionnaire was structured based on the research objectives. From the analysis it was established that; There is no significant relationship between pension plan and job selection, There is significant difference between the old and new pension scheme as the new pension scheme largely defied by contribution, personalised and very portable. That new pension scheme has no significant effect on staff productivity since the attractive benefits has not significantly improved on the workers’ productivity. The researcher recommended that PENCOM should undertake periodic review of the investment guidelines of pension plan and create conductive environment for smooth operations by the pension plan administrators and custodians. It should ensure that the administrators and custodians abide by the rules of the pension game in order to ensure their efficient and effective performance. The public must be regularly enlightened and adequately keep abreast of development in the pension industry by the Commission and the administrators.

Title Page i
Approval Page ii
Certification iii
Dedication iv
Acknowledgements v
List of Table xi
Abstract x

1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Objectives of the Study 5
1.4 Research Questions 6
1.5 Statement of the Hypotheses 7
1.6 Significance of the Study 8
1.7 Scope of the Study 8
1.8 Limitation of the Study 9
1.9 Operational Definition of Terms 10
2.1 The Concept of Bank Lending 13
2.2 History of the Nigerian Pension Industry 16
2.3 The Chilean Model 19
2.4 Divisions of the Pension Scheme 20
2.5 Problems with the Old Pension Scheme 21
2.6 The New Pension Reform Act of 2004 24
2.7 Objectives of the New Pension Scheme 25
2.8 Types of Pension Reform Options 27
2.9 Investment of Pension Fund 32
2.10 Comparing Between the Old and New Pension Scheme 40
2.11 Structure of A Pension Scheme 44
2.3 Non-performing Loans of the Banks 19
2.4 The causes of Non-performing Credit 20
2.5 Warning Signs of Bad Debts 25
2.6 Risks in Lending and its Reduction 26
2.7 Loan Classification 31
2.7.1 Loan Classification by Purpose 31
2.7.2 Loan Classification by Maturity 32
2.7.3 Loan Classification by Security 32
2.8 Securities for Bank Advances 33
2.8.1 Land 35
2.8.2 Life Assurance Policy 37
2.8.3 Stocks and Shares 38
2.8.4 Guarantees 39
2.8.5 Debentures 41
2.8.6 Trust Deeds 42
2.9 The Central Bank of Nigeria (CBN) Prudential Guidelines for
Licensed Banks: its Provision/Impacts 42
2.10 Measures for Effective Management of Bad Debts and Problem Loans 48
3.1 Research Design 44
3.2 Population of the Study 44
3.3 Sample size and Sampling Techniques 45
3.4Method and Sources of Data Collection 46
3.4.1 Primary Sources of Data 46
3.4.2 Secondary Sources of Data 47
3.5 Instrument for Data Collection 47
3.6 Method of Data Analysis 48
4.1 Bio-Data of the Respondents 51
4.1.1 Distribution and Return Rate of the Questionnaires 51
4.1.2 Presentation of the bio-data of the respondents 52
4.1.3 Analysis of the bio-data of the respondents 53
4.2 Analysis of the Research Questions 56
4.3 Test of Hypotheses 62
5.1 Summary of Findings 67
5.2 Conclusion 68
5.3 Recommendations 69
References 75
Appendix 74
Table Title Page
4.1 Distribution and Return Rate of Questionnaire 56
4.2 Distribution of the Respondents Based on Gender 57
4.3 Distribution of the Respondents Based on Age 50
4.4 Distribution of the Respondents Based on Educational Qualification 58
4.5 Distribution of the Respondents Based on Length of Service 59
4.6 Mean score responses on the extent CBN prudential guidelines led to the reduction of non-performing loans of the commercial bank 60
4.7 Mean score responses on the relationship between bank performance and economic growth 62
4.8 Mean score responses on the extent commercial bank loan extension affects their performance and profitability 64
4.9 Z-Test on Hypothesis One 66
4.10 Z-Test on Hypothesis Two 67
4.11 Z-Test on Hypothesis Three 68

1.1 Background of the Study
Pension is the amount paid by government or company to an employee after working for some specific period of time, considered too old or ill or work or have reached the statutory age retirement. It is monthly sum paid to a retired officer until death because the officer has worked with the organization for a specified period of time (Adam, 2005). Pension is also the method whereby a pension pays into pension scheme a proportion of his earrings during his working life. The contributions provide an income for retirement. This is faxed at the investor’s marginal rate of income tax. On the other hand, gratuity is a lump sum of money payable to a retiring officer who has served for a minimum period of term year (now five years with effect from 1/6/92). A greater importance has been given to pension and gratuity by employers because of the belief that if employees future needs are guaranteed, their fears ameliorated and properly taken care of, they will be more motivated to contribute positivity to organization’s output similarly various governments organizations as well as labour union have emphasized the need for sound, good and workable pension scheme (Adebeoyo, 2006, Rebelo, 2002).
Pension reform according to Blake (2003) is not a new issue in any part of the world. It is usually a continuous process especially with the ever changing economic and political process witnessed in all the part of the world. The United Kingdom which is one of the first countries to introduce pension scheme has conducted several pension reforms, the latest being the pension reform under the labour government or Tony Blair in 1997 (David, 2003) Nigeria’s first ever legislation instrument on pension matters according to Balogun (2006) was the pension ordinance of 1951, which had retrospective effect from 1st January, 1946.
The National Provident Fund (NPF) scheme established in 1961 was the first legislation enacted to address pension No.102 of 1979, as well as the Armed Forces pension Act. No.103 of the same year. The police and other government agencies’ pension scheme was enacted under the pension Act No. 75 of1987, followed by the local government pension Edict which culminated into the establishment of the local government staff pension Board of 1987. In 1993 the National Social Insurance Trust Fund (NSITF) Scheme was established by Decree No 73 of 1993 to replace the defunct NPF scheme with effect from 1st July, 1994 to cater for employees in the private sector of the economy against has of employment income in old age, invalidity or death. Prior to the Pension Reform Act 2004 (PPA) (National Assembly of the Federal Republic of Nigeria, 2004;) Pension Reform Act 2004) most public organization operated a Defined Benefit (pay-as-you-go) scheme. Final Entitlement were based on length of service and terminal emoluments. The Defined Benefit Scheme (DBS) was funded by Federal Government through budgetary allocation and administered by pension Department of the office of Head of service of the Federation.

1.2 Statement of Problem
In the last two and half decades, most pension scheme in the public sector had been under-funded, owing to inadequate budgetary allocations. Budget releases which seldom come on scheme were for short of due benefits. This situation had resulted unprecedented and unsustainable outstanding pension deficits estimated at over N2 trillion before the commencement of the PRA in 2004 (Adebeoyo, 2006, Rebelo, 2002).
The administration of the scheme was generally weak, inefficient and non-transparent. There was no authenticated list/data base on pensioners while about 14 documents were required to file pension claims. Also, restrictive and sharp practices in investment and management of pension fund exacerbated the problem of pension liabilities to the extent that pensioners were dying of verification queues and most of the over 300 parastatals schemes were bankrupt before the new scheme came on board. As regards the private sector, most employees in the formal establishment and all those engaged in the informal enterprises were not covered by any form of retirement benefit arrangements. Most pension scheme was designed as ‘resignation’ scheme rather than ‘retirements’ scheme (klumpes and Mason, 2000).
It was against this backdrop, according to Balogun (2006) that the federal government constituted various committees (head by Chief Ajibola Ogunsola and Fola Adeda) at different time to look into the challenges of pension scheme in Nigeria and puffer solution. It was the Fola Adeola Committee report (The Committee, 1997) that was enacted into the Pension Reform Act (PRA) and came into operation 1st July, 2004, to this effect, the researchers seek to: examine the effect of current pension fund scheme on job selection and staff productivity.
1.3 Objective of the study
The broad of objective of this study is to examine the effect of current pension fund scheme on job selection and staff productivity. Specifically, the researcher intends to;
1. 1To examine the relationship between pension fund and job selection.
2. To examine the relationship between old and new pension fund scheme.
3. To determine the effect of new pension fund scheme on public staff productivity.
1.4 Research Question
The following research questions were developed from the objectives.
1. Is there any significant relationship between pension plan and job selection?
2. To what extent did the old pension scheme differ from the fund scheme?
3. How far has the new pension fund scheme affects staff productivity?

1.5 Statement of Research Hypothesis
The researcher will test the following hypothesis based on the objectives of the study;
Hypothesis One
H0: There is no significant relationship between pension plan and job selection
Hypothesis Two
H0: There is no significant difference between the old and new pension scheme
Hypothesis Three
H0: New pension scheme has no significant effect on staff productivity
1.6 Significance of the Study.
This research project will be of more importance to the individual and the workers of public service or public sector.
1. The individual will receive his/her money when he /she retire.
2. The pension benefit will be paid to his or her square when the pension is dead.
3. The pension fund does not belong to the employer it cannot be seized. Please tell how and whom will benefit and how they will benefit.
1.7 Scope of the Study
The researches focus attention on the role played by the pension reform scheme of Anambra State Civil Service.
1.8 Limitations of the Study
This analysis by its demand relied mainly on secondary data. Most of the raw data we supposed to be published by the government agencies. Because of these constrains were experienced and they are limitations of the study namely:
Most government documents and publications have not been published, especially during the military era. This limited the study, otherwise, it would have been extended from 1990-2004.
Unpublished data were rarely make available to the researcher by government officials who avoid violating the official secrecy act. Access to the premises of some agencies in search of data was restricted. Little time was allowed to researcher to read materials and collect data, photocopy facilities were either or not allowed.
A lot travelling and photocopying were involved. Substantial amount of money was spent on transport fares. In some organization where photocopying was allowed, it was done at exorbitant rates.
Secondary data on the project was not easily available. The issues raised boarder on government’s dereliction of its responsibility, which may indict it. No interest was therefore taken to deal inappropriately.
1.8 Definition of Terms
Pension: This has been defined as a deferred salary , that is paid during a workers retirement.
Pension Scheme: Is a system designed to provide employees of an organization with or means of securing on retirement a standard of living reasonably consistent with that which they engaged while in service.
Retirement: This means cessations of service.
Acturies: Experts who calculate insurance risk and payment by studying how frequently the pension benefits nature and are paid.
Pensionable Service: This is an established post in the service or any approved service, which may be taken into account in computing an officer’s under the 1999 Decree (Now Act) No.102
Pensionable Age: This is the age at which pension and gratuity can be calculated for an officer and this has now been reduced from 15 qualifying year to 10 years by the 1992 pension reform services outside the above stated age will not be taken into account for purposes of computation of officer’s retiring benefits as at the case of “leave without pay”
Employees: These are those employed by other or organizations and are paid monthly salaries.
Officer: This means an employee in a steady employment that is eligible to payment of pension benefits as it becomes due.
Qualifying Service: Any approved service which may be an officer is eligible by length of service for a pension or gratuity.
Gratuity: This is a lump sum of money paid once to a retired officer according to the number of years of his entitlement.
Termination: This can be retirement or withdrawal. Withdrawal means cessation of the service after an officer has served a minimum period of 5 years, but less than 10 years, which qualities the officer for the gratuity.
Resignation: This is a sort of termination of an appointment by an officer, which may or not be approved. Any service rendered prior to resignation will not count on re-engagement unless the break has been condoned.

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