2014 PENSION REFORMS: REALITIES AND CHALLENGES OF IMPLEMENTATION IN OSUN STATE

Abstract

This paper examined the challenges in the implementation of the 2014 Pension Reforms Act in Osun State with the aim of understanding the realities of implementation in the state. The paper relied on primary sources through questionnaire and interview. Six ministries in Osogbo were purposively selected and a sample size of 378 respondents were determined using Taro Yamane simplified formula. The result showed that the huge liabilities inherited as a result of non-payment of gratuities and monthly pensions over time (69.1%); unnecessary delays by the MDAs in remitting pension deductions made from staff (54.7%) insufficient and timely funding of retirement bonds benefit redemption fund account (56.4%); ‘Government brought about this pension reform act without fund and looking into MDAs, PFAs issues in Osun state’; ‘Lack of MDAs, PFAs effectiveness to manage and also curb pension embezzlement’; and ‘negligence of MDAs, PFAs were the major challenges of the implementation of the 2014 pension reforms act in Osun state. This paper concluded that the stakeholders must ensure sufficient funding of the retirement bonds benefits redemption fund account to avoid delay in the payment of pension to the beneficiaries.