THE NEXUS OF DEFINED BENEFIT PENSION SCHEME AND CONTRIBUTORY BENEFIT PENSION SCHEME: NIGERIAN PERSPECTIVES.

Abstract

This study examined Defined Benefit Scheme and Defined Contributory Pension Scheme
in Nigeria. The history of Nigerian Pensions scheme over the years has experimented
different pension administrations with the main objective of reducing suffering of
retirees. The Defined Benefit Scheme have seems to have failed. The Pension Reforms Act
of 2004 brought into limelight the new pension scheme in Nigeria which is a defined
contributory scheme unlike the old scheme which was largely defined benefits. The study
used secondary data sourced from PENCON periodic publications, journals and
textbooks. It was discovered that the new scheme is better than the old scheme in that it is
expected to help remedy the deficiencies and inadequacies prevalent in the Defined
Scheme. The study concluded that the values of the 2004 pension reform scheme, by all
standards, are superior to those of past pension schemes. The study recommended that
the PENCON should give zero tolerance to any act of financial misappropriation, it also
recommended that only proper coordination, supervision and regulation of the pension
industry in Nigeria will make to happen.