ABSTRACT

The new pension scheme is based on individual retirement saving accounts managed by private financial institutions. The study assessed the prospects and challenges of pension reform act 2004 in financial institutions in Nigeria, using Diamond Bank Plc as a case study. Primarily the study examines the prospects and challenges of PRA 2004 on the Banking industries and also the relationship between the act and actual administration of pension in the banking industry, using the survey study method data were collected from primary and secondary sources. Using well structured questionnaires and personal interviews. The study data were analyzed using survey and questionnaires while chi square statistics was employed to the study hypothesis which sort to determine the relationship between the pension reform act 2004 and pension administration in the banking industry and also the prospect of the act in the banking industry. From the study it was found that the prospects of new pension scheme in financial institutions in Nigeria are greater than it's challenges and also there is no problems associated with delay in payment of fresh retires under the pension reform act 2004. Based on the research findings it's is recommended that government should also reform the legal system and simplify laws relating to investment, business transaction for the benefits of the retires, also necessary frame work and good governance should be put in place to ensure that the huge pool of fund generated from pension would prices in the capital market and saturate the money market with liquidity thereby declining public sector borrowing requirement.

TABLE OF CONTENT

Title page i

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Table of content Vi

Abstract VU

CIIAPTER ONE

1.0 Introduction 1

1.1 Background of the Study 1

1.2 Problem Statement 4

1.3 Research Objectives 4

1.4 Research Questions. 5

1.5 Statement of Hypothesis 6

1.6 Significance of the Study 7

1.7 Limitation of Study 7

TABLE OF CONTENT

CHAPTER TWO

2.0 Literature Review 9

2.1 introduction 9

2.2 The Meaning of Pension and Pension Scheme 10

2.2.1 Types of Pension Scheme: 12

2.2.2 The Nigeria Pension System: 12

2.3 Pension Policies and Development in Nigeria 13

2.4 Objectives of Pension Reform Act 2004 15

2.4.1 The Essential Provision of the new Pension Scheme

Designed to Achieve the above Objective of Pension 16

2.5 Role of Financial Institution in Pension 17

2.6 Functions of Pensions Funds Administration and

Pension Commission. 18

2.7 Risk Management in Pension Fund Administration in

Nigeria. 20

2.7.1 Type of Risk: 21

2.7.2 Risk Mitigates and its Management in Pension Administration:

Opportunities and Challenges for Financial 24

2.8 Opportunities and Challenges for Financial Institutions 27

2.8.1 Challenges 28

CHAPTER THREE

3.0 Research Methodology 31

3.1 Research Design 31

3.1.1 Explanatory Research Design: 31

3.1.2 Survey Research Design 31

3.2 Scope of the Study 32

3.3 Sources of Data 32

3.3.1 Primary Source of Data 33

3.3.2 Secondary Source of Data 34

3.4 Population of the Study 34

3.5 Sampling Design 34

3.6 Data Collection Techniques 34

3.7 Procedures for Processing and Analysis 36

CHAPTER FOUR

4.0 Data Presentation and Analysis 37

4.1 Preamble

4.2 Data Presentation 37

4.3 Analysis of Data 37

4.4 Test of Hypothesis 44

CHAPER FIVE

5.0 Summary, Conclusion and Recommendation 50

5.1 Summary of Findings 50

5.2 Conclusion 51

5.3 Recommendation 52

Reference 54

Questionnaire 56