IMPERATIVE OF TRANSITION MANAGEMENT FOR ENTRENCHMENT OF CONTRIBUTORY PENSION SCHEME IN

Abstract

This study intends to examine the management of shift from one form of pension scheme to another. The management of transition from Defined-benefit pension scheme to Definedcontribution scheme in Nigeria is the main theme of this paper. A transition is a process of structural societal change from one relatively stable system state to another via a co-evolution of markets, networks, institutions, technologies, policies, individual behaviour and autonomous trends. The complexity of a transition implies that it has a multitude of driving factors and impacts. A transition can be accelerated by one-time event, such as crisis (a pension funding crisis). To investigate pension transition management in Nigeria, this paper relied mainly on array of secondary data from different sources which would be analyzed and make deductions about pension transition. This paper concluded that effective transition management is very imperative for the successful implementation and entrenchment of defined-contribution (contributory pension) scheme, so that backlog of unsustainable arrears are accounted and settled, and number of would-be pensioners who cannot be fit in into the newly introduced defined-contribution scheme be appropriately phased out and also to trim the pension bureaucracy