EFFECT OF ECONOMIC RECESSION ON RETIREES: A CONCEPTUAL REVIEW OF PENSION PROVISIONS PRA, 2014

Nurudeen Bello Ahmed PhD

Abstract

About two decades away from the implementation of the New Pension Act 2004 and the repealed Act 2014 as amended subjected the living conditions of older persons (retirees) in Nigeria to a more deteriorated and eroding status due to economic hardship and purchasing power largely attributed to the value of the Naira, particularly on the care forthe old-age.The study specifically looked at sections 3 (Establishment of contributory pension scheme 2014 as Amended), 4 (Rate of contribution to the scheme) and 7(Retirement benefits). Relevant provisions under the PRAct, 2014 with particular reference to the sections 3,4 and 7 were reviewed having also considered relevant literatures with respect to period under economic recession and the effects of it on retirees. Content Analysis was adopted to enable proffer suggestions and recommendations on the study. The study concluded that it has been established that economic recession once hit, effects retiree benefits through the instrumentality of the PFA’s. The study suggests that sections 4(2) and 7 of PRA Act, 2014 be reviewed legislatively as a result of frequent entry of Nigeria into recession which posit economic hardship akin to inflation and the value of the naira.