Review of pension schemes of Ukraine and Argentina in comparison with Nigeria’s 2014 pension reform act

Abstract

The effectiveness of a pension plan or scheme is a function of its contents, structure and management. Over the years, the non-contributory pension scheme in Nigeria was confronted with daunting challenges. As alternative to these challenges, the 2004 Pension Reform Act came into force. The 2004 Pension Reform Act was amended in 2014 and it gave rise to the 2014 Pension Reform Act. With this new pension plan for retirees in Nigeria, it became imperative to evaluate the position of this new pension scheme in comparison with the pension schemes of other countries outside African continent, hence the choice of Ukraine from Europe and Argentina from South America. In the review, it is a fact to note that the pension schemes of the two countries vary from that of Nigeria in terms of their titles but similar in their contents. For instance, all the three have the feature of contributions from both employers and employees. The significant difference is in the value of contributions for each party (workers and management). Among these countries their pension schemes were reviewed, it is only Ukraine‘s pension scheme that has maturity status. Others do not have. Challenges of sustainable financing face all the schemes. This means that measures of sustained financial security should be strengthened. In Nigeria, operators of the contributory pension package especially employers need to be regular in their contributions. Employees on their part should develop the attitude of having constant check on their contributions so as to detect any eventuality that might arise and address them. This will ensure the success and credibility of the scheme.

Keywords: Pension scheme, Contributory pension, Pillar, Retirement