Workers’ Understanding And Perception Of The Pension Reform Act 2004: A Study Of Prisons’ Staff In Enugu State

ABSTRACT

Pension scheme is not new in Nigeria. Before the new pension scheme, there

were pockets of legislations regarding pension matters, which were not comprehensive

and could not address the needs of pensioners because they were deficient of what is seen

globally as the characteristics of an ideal pension scheme. Unfortunately, the introduction

of the Pension Reform Act 2004 that was meant to correct the wrongs of previous

schemes, witnessed increased voluntary retirement from public service. The purpose of

this research therefore, was to investigate workers’ understanding and perception of the

Pension Reform Act 2004 and to find out the influence of some socio-demographic

variables on understanding and perception of the Act. The study was carried out using

the entire staff of the various prison stations in Enugu State Command (600 respondents

for the questionnaire, 12 for in-dept interview and 48 for focus group discussions).

Information gathered were analyzed using percentage (%) while chi-square (X2) was

adopted in testing the hypotheses. The study found out that there was lack of

understanding and wrong (negative) perception of the PRA 2004 as a result of inadequate

sensitization and education on the administration and modus operandi of the new pension

scheme. Five hypotheses were proposed and tested. The study also revealed that sex,

rank/cadre, level of education and station of respondents had no significant relationship

with understanding while age and length of service of respondents had slightly and highly

significant relationship respectively with understanding of the scheme. Surprisingly, sex,

rank/cadre, and level of education had significant relationship with degree of perception

while age and length of service of respondents had no significant relationships with

degree of perception as revealed by their chi square test values. Conclusively, there is no

relationship between understanding and perception of PRA 2004. These findings have

clear implications for social policy and social work practice in Nigeria. It therefore

revealed the need for regular education and sensitization of workers on the new pension

scheme.