REGULATORY STRUCTURE, PENSION REFORM AND RETIREES’ WELFARE UNDER THE CONTRIBUTORY PENSION SCHEME IN NIGERIA: A FACTOR ANALYSIS APPROACH

Social policy experts have long been divided about the optimal features of oldage security, and more recently about the strengths and weaknesses of various pension reforms as it affect the old workers. This paper examines the effects of pension reform and its regulatory structure on retirees’ welfare under the contributory pension scheme in Nigeria. Data were collected through structured questionnaire administered to a sample of 50 experienced retirees on successive government reforms and regulatory structure from Ministry of Works. In analysing the data, the technique of factor analysis was used. The results show that both pension reform and regulatory structure have positive influences on retirees’ welfare. Other factors that affect retirees’ welfare are timely payment of pension income, health, consumption and savings. However these factors were only used as control variables in the study. The study, therefore, concludes that, holding other factors constant, pension reform and regulatory structures account for positive and significant impact on retirees’ welfare. Hence the study recommends that pension reforms in Nigeria should be subjected to periodic review and all institutions involved in pension administration, viz, Pension Commission (PENCOM), Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) should be compelled to take issues of compliance, monitoring and evaluation very serious as these will guarantee improvement in the welfare of the retirees.