DETERMINANTS OF FINANCIAL SUSTAINABILITY OF PENSION FUND ADMINISTRATORS IN NIGERIA

Financial sustainability of pension funds are often cited as essential
determinants for ensuring the provision of safe and reliable pension for
retirees and pensioners. Whether pension fund administrators will
become part of a lasting solution to the pension financing problems in
Nigeria or not depends on their ability to continue to grow, expand and
sustain themselves over the course of time. Contemporary literatures on
pension reforms identified financial sustainability as the key challenge
of Pension Fund Administrators. This study, therefore, examines the
determinants of financial sustainability of pension fund administrators
in Nigeria. A positivism thought to epistemology guided by quantitative
parametric pooled regression were used as paradigm and technique of
analysis respectively. A data set of fifteen sampled pension fund
administrators taking cognizance of Contribution, Size, Net income,
Age, Board size And composition and GDP as independent variables
were pooled and regressed against Sales scaled by total assets. The
results indicate a positive and significant contribution of age, size, net
income and contribution to financial sustainability of pension fund
administrators. On the contrary, GDP, Board composition and board
size, though, not significant displayed a negative contribution to
financial sustainability of pension fund administrators in Nigeria.
Conclusively, the result inferred that the level of sustainability today will
affect the sustainability tomorrow regardless of where the pension fund
administrator stands in its life cycle or developmental stage. Therefore,
the study recommends amongst others a close monitoring and swift
actions to remedying any weakness in Pension Fund Administrators.