PENSION

Retirement is when a person chooses to leave the workforce or leave its primary activity in a  business, industry or active service as a full time employee. the causes from separation from active service may be due to various reason which the most common is old age. It is therefore imperative that an employee during the years of active service put certain money aside that will cater for him/her when he/she retires from work. failure to do that means the retired employee might end up becoming a social destitute. pension is a form of income that retired employees or their dependents receive after workers retire, become disabled or die. Pension plan according to law has a main objective which is to assist improvident individuals (those who cannot save) to make provision for old age, but in order to achieve the objective, pension are strictly guided by law and various administrative fiscal policies. In advanced economies, there are various pension plans and these plans are taken as generic plans that can effectively protect individuals standards of living from failing at old age.

Pension in Nigeria was introduced during the colonial rule, when citizens of the country then made a petition and argued that they needed pension for themselves and other citizens as well, after which the petition was granted by the then British Representative in Nigeria. in 1951, the British Administration established a scheme through an instrument called ordinance, bu it however had a retroactive effect from 1946 and applies only to those working for the British Government then.

Between 1951 -2017, there has been various pension laws enacted in Nigeria for the betterment of its citizens, with the latest being the contributory pension scheme where both employee and employer contribute a certain amount of the monthly emolument of the employee, specifically, 10% for employers and 8% for employees.

INS 312: Pension and Social Insurance I is an HND I Full-Time Three (3) units core course for undergraduate students undergoing Insurance Programmes. The course consists of twelve (12) substantive and relevant topics. The present course material for the course has been compiled over year and it has been developed to suit undergraduate students of Federal Polytechnic Offa, and other higher institutions of learning, and even post graduate students undergoing Insurance as a discipline in any institutions by adopting an approach that highlights the key areas of Pension and Social Insurance.

Student who successfully completes the course will surely develop a positive attitude and deep understanding of Pension and Social Insurance. Students are required to avail themselves of the opportunities that abound in modern libraries such as the Internet, E-mail and some current collections of textbooks on the course. 

This course guide briefly explains to students what the course is all about, the course materials to will be used, and how students are expected to cover the course. There will be regular lecture classes that are linked to the course and students are advised to attend the sessions.  

COURSE OUTLINE OF PENSION AND SOCIAL INSURANCE

1. History and Evolution of Pension in Nigeria

2. Retirement and Pension

3. Social Insurance

4. Structure and Types of Pension Plan

5. Defined Benefit (Salary Linked)

6. Defined Contribution (Money Purchase)

7. Difference Between between Defined Benefit and Defined Contribution

8. Defined Contributory Pension Scheme in Nigeria (PRA 2004)

9. Pension Reform Act 2014

10. Group Life Assurance

11. Annuity Contract

12. Micro - Pension
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