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THE EFFECT OF 2004 PENSION REFORM ON PUBLIC SERVANT

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ABSTRACT

The purpose of occupational pension scheme is to provide employees regular and stable income after their retirement from service. It is an arrangement an employer or a group of employers use(s) to provide pension (and sometimes other) benefits for their employees when they leave or retire. They also provide benefits to the employee’s dependant if the employee dies. This scheme is usually y funded by contributions from just the employer, or from both the employer and the employee. A good pension scheme does not only serve as all incentive to employees but helps to attract and retain experienced staff. According to Dike (2006) the main objective of pension fund is to provide an employee at the date of his retirement a lump sum or a stream of payment that will ensure that the retiree’s standard of living after retirement is not much different from what is obtained in the period immediately preceding his retirement.

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