How Additional Retirement Benefits Can Boost Pension for Employees

The Contributory Pension Scheme (CPS) is a sustainable pension system that provides a stable, timely, predictable, and adequate source of retirement income for employees in the public and private sectors. The CPS was the outcome of reforms in the pension sector initiated by the Federal Government of Nigeria (FGN) in 2004. The reform initiative culminated in the enactment of the Pension Reform Act of 2004 (PRA 2004). Ten years later, the PRA 2004 was repealed and replaced with the Pension Reform Act 2014 (PRA 2014).

Stakeholders have adjudged the implementation of the CPS in Nigeria a success. However, there are complaints about low pensions, especially from retirees in the public sector, because of the relatively low pay relative to the private sector. It is vital to state that the CPS provides a comprehensive framework that allows employers and employees to plan and save towards pensions. Accordingly, employers of labour can use any of the following ways recognised by the PRA 2014 to increase the pensions of their retired employees: Thisday