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INTRODUCTION
1.1 Background of the Study
The issue of retirement and death benefits has received much attention in many countries
over the past decades. In fact, in recent times, retirement fund has increasingly attracted the
attention of policy makers in many countries as a means of facilitating privately funded
retirement income savings by an ageing workforce (World Bank, 2013). Many countries have
opted for various forms of contributory retirement fund scheme where employers and their
employees are supposed to pay a certain percentage of the employees monthly earnings to a
retirement savings accounts from which they would be drawing their retirement benefits after
retirement or death benefits after death (Robolino, 2011). According to Klumpes and Mason
(2012), besides retirement benefit funds are now among the most important institutional
investment in the world capital markets.
Retirement benefit is a monthly payment made to an employee after he/she has retired
from service. On the other hand, death benefit is a payment in form of compensation paid to an
eligible dependant(s) of a police officer that died while in service. Retirement fund is one
indispensable form of employees solid benefits which has positive impact on employee
discipline, loyalty and willingness to remain in the service of an employer, commitment to the
attainment of job goals and concern for the survival of the organization. An occupational
retirement fund scheme is an arrangement under which an employer provides retirement fund for
employees when they retire or gives deferred benefits to members who leave. It is a system
designed to provide the employees of an organization with a means of securing on retirement a
standard of living reasonably consistent with that which they enjoyed while in service.
A greater importance has been given to retirement and death benefits by government
ministries, departments, parastatals and agencies such like the Nigerian Police Force because of
the belief that if employees future needs are guaranteed, their fears ameliorated and properly
taken care of, they will be more motivated to contribute positively to organizations output
(Adebayo, 2010). However, over the years the management of retirement and death benefits in
these government owned establishments in Nigeria has been faced with several problems. For
example, over the years, the management of the Nigerian Police Force has been faced with
multiple and diverse problems such as delays in releasing retirements benefit, wrong
computations of retirement benefits etc. Also, efforts by the government and other relevant
stakeholders to curtail the problems have been futile.
These problems faced by the Nigerian Police Force are assumed to be linked to the
various sharp practices perpetuated by officers of the Nigerian Police Force and other relevant
stakeholders. Thus, it becomes then imperative to examine these sharp practices in the
administration of retirement and death benefits in the Nigerian Police Force.
1.2
Statement of Problem
Retirement and death benefits and related issues have received significant attention in
many countries over the past decades. There are new changes in the way retirement funds or
assets are managed and benefits are distributed to beneficiaries due to the difficulties associated
with the retirement fund schemes previously in existence.
Despite the fact that retirement benefit provides benefits which can be regarded as
compensation to an employee for the services rendered to the organization, the expectation and
actual experiences of many retirees in the Nigerian Police Force falls short.
Also, over the years, the management of retirement and death benefits in Nigerian Police
Force has been faced by multiple and diverse problems such as inadequate funding, inadequate
subventions and grants, poor documentation and filing in offices, direct release of retirement and
death benefits funds to underwriters, accumulated arrears of retirement and death benefits, lack
of accountability, corruption and embezzlement of retirement and death benefits funds. Others
include cumbersome clearance procedures, incompetence and inexperience of officers in charged
with the responsibility of processing police officers retirement and death benefits added to poor
human relations, lack of etiquette and simple courtesy. This situation often affects police
employee loyalty and commitment to the force negatively.
Many nations of the world in Europe, America and other developed and developing
nations have been faced with the problem of managing their retired workers as well as payment
of their entitlements as they disengage from work. For many developed nations and many
multinational corporations, the problem of payment of retirement benefits to their retired workers
is not a herculian task since many decades ago, they adopted an effective administrative system
which applies to workers in both the private or public service. The problem is more pronounced
in developing nations like Nigeria, most especially in the Nigerian Police Force, where the
government had to bear the brunt of payments of retirement and death benefits with little or no
contribution made by the police officer.
Initially, the governments were able to do it during periods of economic boom and when
police officers retirees were fewer in Nigeria. It became an uphill task when the number of police
retirees began to increase astronomically, and was compounded by global economic recessions.
Nigeria is one of the nations that its retired police officers had to face a lot of problems due to the
fact that the government could no longer manage and administer effectively the retirement
3
benefits of workers in the police force who were untimely retired, due to the death or, retrenched
due to downsizing and closure of some government institutions and departments or even normal
disengagement from service.
Nevertheless, the Nigerian Police Force in a bid to create a sound, good and workable
retirement fund scheme, there have been several reviews of retirement fund schemes by the force
and this has also caused implementation problems. Other researchers (Adams, 2005; Adebayo,
2010; Sterns, 2006) have studied retirement and death benefits in the light of its administration,
but little or no work have looked at the sharp practices in the administration of retirement and
death benefit in the Nigerian Police Force. Hence, this study is motivated in this light.
In examining the sharp practise in the administration of retirement and death benefits in the
Nigerian Police Force, the study will provide answers to the following research questions:
i.)
What are the types of retirement and death benefits administered in the Nigerian Police
ii.)
Force?
Are there sharp practices in the administration of retirement and death benefits in the
iii.)
iv.)
v.)
1.3
The general objective of this study is to examine the sharp practices in the administration
of retirement and death benefits in the Nigerian Police Force. Other specific objectives are:
i.
To identify the types of retirement and death benefits administered in the Nigerian
ii.
Police Force.
To ascertain if there are sharp practices in the administration of retirement and death
iii.
iv.
v.
1.4
Research Hypotheses
The research hypotheses are given below:
Hypothesis One
Ho: There are no sharp practices currently in the administration of retirement and death benefits
in the Nigerian Police Force.
Hypothesis Two
Ho: Lack of a comprehensive accounting standard is not the only factor responsible for the sharp
practices in the administration of retirement and death benefits in the Nigerian Police Force, but
other factors.
Hypothesis Three
Ho: Sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force does not have negative effect on Police Officers motivation and commitment levels.
1.5
death benefits in the Nigerian Police Force. However, due to time and cost constrains, the study
was restricted to the Nigerian Police Force Headquarters in Benin City, Edo State, Nigeria.
1.6
makers on retirement and death benefits with respect to the Nigerian Police Force and as well as
improve the management of the retirement and death benefits by designing strategies that will
curtail the various challenges and problems associated with the Nigerian Police Force as regard
its retirement and death benefits administration.
Furthermore, the study would assist authorities of the Nigerian Police Force and
managers of the retirement and death benefits in understanding the essence, significance and
importance of their role in ensuring that they abide by the rules and policies of retirement and
death benefits in order to ensure their efficient and effective administration, thereby creating a
balance between employee retirement expectation and their actual retirement experiences.
Finally, it would add to the existing body of knowledge on the subject and the interesting
findings may serve as input for or raise issues for further research on retirement and death
benefits administration or other related topics.
1.7
Conceptual Clarification
Sharp Practices - Sharp practice is a negative phrase to describe mean or cunning behaviour of
some police officers or officers saddled with the responsibility of managing retirement and death
benefits of police officers in Nigeria, that is technically within the rules of the law but borders on
being unethical.
Administration: the act of administering something such as medicine, oath, or retirement
benefits as related to this study.
Retirement Benefit - Retirement benefit is a monthly payment made to a police officer after he
is retired from service.
Death Benefit Death benefit is a payment in form of compensation paid to an eligible
dependant(s) of a police officer that died while in service.
Nigerian Police Force - The Nigerian Police (NPF) is the principal law enforcement agency in
Nigeria.
CHAPTER TWO
LITERATURE REVIEW
2.0
Literature Review
2.1
Introduction
This chapter presents a review of the literature on administration of retirement and death
benefits in Nigeria. Special attention is paid to the concept of retirement benefits and death
benefits; the problems associated with the administration of retirement benefits and death
benefits in Nigeria and the way forward.
2.2
or both to ensure that at retirement, there is something for employees to fall back on as income. It
ensures that at old age workers will not be stranded financially. It is aimed at providing workers
with security by building up plans that are capable of providing guaranteed income to them when
they retire or to their dependants when death occurs.
A retirement benefit is a contract for a fixed sum to be paid regularly to a pensioner,
typically following retirement from service. It is different from severance pay because the former
is paid in regular instalments while the latter is paid in one lump sum.
A retirement benefit plan created by an employer for the benefit of employees is
commonly referred to as an occupational or employer pension. Labour unions, the government
and other organizations also fund retirement benefits. Occupational retirement benefits are a
form of deferred compensation, usually advantageous to employee and employer for tax reasons.
Many retirement benefit plan also contain an additional insurance aspect, since they often will
pay benefits to survivors or disabled beneficiaries. The common use of the term retirement
benefit is to describe the payments a person receives upon retirement, usually under predetermined legal and/or contractual terms.
According to Adams (2005), retirement benefits is the amount paid by government or
company to an employee after working for some specific period of time, considered too old or ill
to work or have reached the statutory age of retirement. It is equally seen as the monthly sum
paid to a retired officer until death because the officer has worked with the organization paying
the sum.
Adebayo (2010) asserted that retirement benefit is also the method whereby a person
pays into retirement benefit scheme a proportion of his/her earnings during his working life. The
contributions provide an income on retirement that is treated as earned income. This is taxed at
the investors marginal rate of income tax. On the other hand, gratuity is a lump sum of money
payable to a retiring officer who has served for a minimum period of time.
Robolino (2011) notes that many countries have opted for different forms of contributory
retirement fund schemes, in which employees and their employers are expected to pay certain
percentages of their monthly earnings to a Retirement Savings Account (RSA) from which they
would be drawing their retirement benefits after retirement. Retirement fund reflects money
withheld during the period of employment and returned with interest to an employee after
cessation of work, that is, at retirement. A retirement scheme is a way of providing an employee
with either a lump sum of money when leaving the service of an employer or providing a
retirement fund to the employee.
The reason for the retirement benefit scheme stems from the fact that first an organization
has a moral obligation to provide a reasonable degree of social security for workers especially
those who have served for a long period. Second the organization has to demonstrate that it has
the interest of its employees at heart through the retirement benefit schemes. The most popular
way to determine the amount of an employees retirement benefit is to base payment upon a
percentage of the employees earnings computed at an average over several years multiplied by
the number of years the employee has served the company.
A greater importance has been given to retirement benefit and gratuity by employers
because of the belief that if employees future needs are guaranteed, their fears ameliorated and
properly taken care of, they will be more motivated to contribute positively to organizations
output.
Retirement benefit is a tool used to manage employment. It can be applied in an
organization to attain and retain certain levels of labour productivity. Armstrong (2010) affirms
that retirement benefit helps employees to readjust themselves properly into the society after
leaving employment. It constitutes an important tool in the hands of management for boosting
employee morale which may lead to efficiency and increased productivity of employees in
particular and the organization as a whole. Besides retirement benefit is a device which
employers use to meet their social responsibilities and thereby attract goodwill.
Furthermore, retirement benefit now plays an increasingly important role in the economy
of any country because the money earmarked for retirement could be used for the establishment
of small enterprises. It can also relieve pressure on the company for individual assistance by
instilling in employees a sense of confidence at challenging responsibilities for their future.
Sterns (2006) observes that retirement benefits could discourage labour turnover. If both
the employees and employers contribute to the scheme, then it serves as a general area of joint
interest and cooperation and therefore helps to foster better employment relations. However,
employer and employee relationship in the provision of pension as a form of employee benefits
10
is often affected by factors including: pensionable and gratuity age; the amount or the percentage
of the proposed retirement benefit; method of financing; administration of retirement benefit and
psychological pressure.
Furthermore, various government organizations as well as labour unions have
emphasized the need for sound, good and workable retirement benefit scheme. In the words of
Sule and Ezugwu (2009), a good retirement benefit guarantees employees comfort and
commitment to the organization during his/her active years.
According to Ozor (2011), retirement benefit consists of lump sum payment paid to an
employee upon his disengagement from active service. According to him, payment is usually in
monthly instalments. He further stated that the retirement benefit plans may be contributory or
non-contributory; fixed or variable benefits; group or individual; insured or trustee; private or
public, and single or multi-employer.
Balogun (2006:7) observes that retirement benefit schemes exist to provide post
retirement benefits to employees. He further added that the primary goals of a retirement benefit
system should be to provide adequate, affordable, sustainable and robust retirement income,
while seeking to implement welfare improving schemes an adequate system seeks to provide
sufficient benefits to prevent old age poverty, smoothen a reliable means to lifetime standards
and acceptable lifestyle.
The article added that an affordable system is that which is within the financing
capability of employees and does not unduly displace other social and economic imperatives. A
sustainable system is the one that is financially sound, funded and maintained over a foreseeable
horizon under a broad set of reasonable assumptions (Balogun, 2006: 8).
11
2.3
service. The benefits vary according to the rules of the retirement and death benefit scheme the
employee belongs to and whether the person that died was still contributing to the scheme, had
left the scheme or was a retiree (Fapohunda, 2013).
Death can occur in service or as well as death during retirement. Here Retirement Act
provides that where a contributor dies during employment, the balance on his RSA will be
transferred to his known beneficiary named in the will, which is his or her spouse, children, next
of kin or the administrator of his estate as determined by the pension. The same provision also
applies to retirees who have started receiving retirement benefits through programmed
withdrawal.
Garba and Mamman (2014) asserted that sometimes who gets what death benefit is
automatic and further added that the retirement and death benefit scheme trustees usually have
discretion to decide who receives any lump sum payment. This is because lump sum death
benefits paid in this way are not part of your estate for inheritance tax purposes. In most cases,
the employee that died would have signed a death benefit nomination or expression of wishes
form.
Ali (2014) stressed that trustees are not obliged to follow the instructions on an
expression of wishes form, but do need to take them into account. Many employees are entitled
to a death in service benefit from their employer. The figure can vary considerably from a very
small sum to over ten times an employees annual salary. The benefit is usually linked to the staff
pension scheme and will be free of inheritance tax based on certain conditions.
12
Death in service benefits are unusual in that that they are paid outside of a will or the
intestacy process, i.e. they do not form part of the deceaseds estate. On the downside, this
means that dependents, and the courts, have no means to intervene if there is a dispute about who
receives the payment. As these benefits are usually part of a retirement fund scheme, trustees will
normally have discretion about who to pay, but they are usually very reluctant to go against the
employees previous nomination (Ali, 2014).
2.4
13
Olayiwola (2011) summarized and categorized the types of pension systems (retirement benefit)
in Nigeria, prior to the Pension Reform Act 2004 into four, namely:
The fully Unfunded Defined Benefit (DB) Scheme, in the civil service
The Defined Contributory (DC), scheme for employees in the organized private sector,
administered by the NSITF
The Self-Administered Scheme in government parastatals and the private sector, and
2.5 Sharp practices in administration of retirement and death benefits in the Nigerian
Police Force
In the Nigerian Police force, there have been numerous corruptible practices in the payment
of gratuities, pensions or retirement and death benefits such as falsification of age, delays in
payment, long distant travels to receive payments, ghost workers, embezzlement of funds,
mismanagement and diversion of funds (The Post Express June, 2000). These exploitative evils
are purely administrative. It was until some retirees who were also pensioners cried out aloud in
the streets and through the mass media for a positive change (Obi, 2002: 91-100) that the
Pension Reform Act of 2004 was enacted. Although, it was enacted on 25th June, 2004, it only
became effective on 1st July, 2004 to redress corruptible practices in the scheme. The Pension
Reform Act of 2004 established a defined contributory scheme as against the defined benefit
scheme it succeeded. However, some factors have affected the administration of retirement
benefits in the Nigerian Police force.
14
2.6 Factors influencing sharp practices in the administration of retirement benefits in the
Nigerian police force
According to Obi (2002) retirement benefits are one of the common benefits payable to an
officer having been in pensionable office. It is a steady income given to a person usually after
retirement. However, a variety of factors affect the benefits that covered workers.
There have not been much literature directed to the corrupt practices in the Nigerian Police force
in respect of retirement and death benefits. However, according to this study, in the Nigerian
Police force, the main factors which affect the administration of public pension scheme are:
1. The national economy
2. Decentralizing the processing of pension claims
3. Corruption and inefficiency in the pension department
2.7 The effect of sharp practices in the administration of retirement and death benefits on
police officers motivation and commitment level
Retirement and death benefits are two important factors in the public sector. When withheld, it
has a negative impact on the motivation and commitment of other public officers. Sharp practices
in the administration of retirement and death benefits, which have been influenced by the
national economy, corruption, inefficiency and other factors, have been shown to have a negative
effect on police officers motivation and commitment level (Obi, 2002). It reduces the quality of
the service delivered by the police officers, thereby making them relent in going an extra mile in
carrying out their duties. It also reduces the job motivation and commitment level of the officers.
Sharp practices in the administration of retirement and death benefits also reduces the job
satisfaction of police officers. This, in turn, makes them to look outside for other better
alternative jobs.
2.8
The issues of retirement and death benefit in Nigeria are sources of major concern to
government and retired persons in Nigeria.
Balogun (2006:8) observed that in the last two and a half decades, most retirement
benefit schemes in the public sector had been poorly funded or unfunded, owing to inadequate
budget allocations and budget releases which seldom came on schedules and were far short of
due benefits. This situation had resulted into unprecedented and unsustainable outstanding
pension deficits.(2006:10), has further resulted in the following:
Delays in releasing retirement benefits to police officers upon retirements and death benefits
in active service.
Some officials corruptly enrich themselves with retirement and death benefits funds by
falsifying and adding non-existing names to beneficiary list, thereby swelling up the cost of
benefits.
Inability to identify better methods, procedures, ways and means of accounting for retired
police officers and caring for their welfare is a source of concern.
Similar to Balagouns views, Akinyemi (2012:44) identified some of the following sharp
Restrictive and sharp practice in the investment and management of pension funds.
Process of documentation, application and registration became very cumbrous that
computation officers and clerks cashed on and were looting the system dry and blue.
16
Delays in release of funds to pension further compounded the predicament of the pensioners
and retirees.
Bogomolova (2005) and Robbins (2009) were of the view that some of these sharp
practices are very low and sometimes an outright non compliance ratio due to lack of effective
regulation and supervision of the retirement and death benefit scheme in Nigeria.
Dalang (2006:30) observes that retirement benefit has become a topical issue, one that
has engaged the commitment of government, attention of employers and employees not only in
Nigeria but in many emerging and developing economies of Africa, Asia, and Latin America. It
is the spirit of improving the economic wellbeing of retirees in their post-retirement lifestyle that
the Federal government of Nigeria carried out a general overhaul of the defined benefit hinged
on Pay As You Go (PAYG) policy in 2004.
Fapohunda (2013) revealed recently the multi-million pension fund scandals pervading
many strata of the Nigerian society like the Pension unit of the Office of the Head of Civil
Service of the Federation, PENCOM and the Nigerian Police Pensions. A recent National
Assembly public hearing on pension revealed that six civil servants stole N24 billion from the
Police Pension Funds. The same persons were alleged accomplices in the illegal diversion of
another N24 billion from the Police Pension Funds. Similarly, N151 billion and another N32.8
billion and another 6 million pounds were recovered after the conduct of Biometric Data Capture
exercise on pensioners since 2010 (Fapohunda, 2013).
Iwara (2012) opined that, the design of a retirement benefit system must clearly recognize
that retirement benefits are claims against future economic output. To fulfil this primary goal, he
argued that the retirement benefit systems be reformed in such a way that it must supports
17
growth, development, diminishes possible distortions in a capital and labour markets and
ultimately contribute to economic output.
2.9
in the Nigerian Police Force, several authors have suggested possible alternatives to curtailing
the problem.
Holzmann and Hinz (2005) and Palacios and Sluchynsky (2006) have suggested social
retirement fund system which involves cash transfer to old people with eligibility based on
residence and financing not from contributions but general tax revenues. According to the
authors, the
countries has been long advocated by the International Labour Organization (ILO) and more
recently, the World Bank. They further added that social retirement fund scheme have been
credited with positive developments in those countries that have introduced them.
In collaboration to the foregoing, Johnson and Williamson (2006) noted that social
retirement fund scheme have contributed to improving workers health, fighting rural poverty,
heightening the status of older people in the family and increasing school enrolment.
However, Fapohunda (2013) argued that social retirement fund scheme may not be
without disadvantages. He posited that in a traditional settings like Nigeria, it tend to weakens
traditional systems of informal family care for the elderly. He further added that it relies on the
18
same revenue base as the old, unfunded, pension scheme consequently there is instability of the
revenue source, and thus the likelihood of payments falling into arrears, would remain.
Thus, in view of the short comings of the social retirement fund scheme, Fapohunda
(2013) suggested the following:
i.)
ii.)
iii.)
beneficiaries.
There is need for continuous regulation and strengthening of the institutional structure
iv.)
v.)
erring operators.
To ensure transparency and prompt payment there must be prompt reconciliation and
vi.)
vii.)
instruments where they can be invested must be rated to ensure asset quality.
There is need for viable investment of retirement fund to ensure prompt and regular
viii.)
ix.)
Concerted efforts must be made to prevent more of these scams in the country.
An appropriate implementation and enforcement culture is needed which involves
prompt prosecution of defaulters and enforcement of penalties.
19
x.)
Managers of retirement and death benefits scheme must improve on its services and
be open to all enquiries. There is need for more automation to make the scheme
xi.)
xii.)
CHAPTER THREE
THEORETICAL FRAMEWORK AND RESEARCH METHODS
3.1
Theoretical Framework
positions of two different schools of thought were built. These are the traditionalist school and
the modernist school.
The argument of the traditionalist is that corruption and unethical practices in Nigeria are
symptoms of perversion of traditional values, beliefs, norms, ethics, and so on (Azelama, 2002).
This school blames corruption on invasion of African culture by the West; that is, Europeans
need to bring civilization to Africa.
According to this theory, the antidote and recipe to the diseases of corruption are crystal
clear. It is to go back to the African traditional values of hard work, honesty, communal lifestyle,
neighborliness and celebration of good characters and track record in governance, and so on
(Azelama, 2002). However, this school of thought is flawed on the ground that it fails to direct
its focus on corruption in traditional African societies. Nevertheless, it is doubtful, however,
whether corruption in traditional African societies was not far lower than what we have in
Nigeria since independence.
In relating this theory, retirement benefits have been hindered by the rate of sharp or
corrupt practices in the public service and the society at large. Funds which are meant for retired
workers are stolen by corrupt officials. Most retired police officers on their retirement benefit for
survival after retirement as much may not have been achieved during their service days.
Maslows Hierarchy Needs Theory applies to the fact that most retirees and even those still in
service work and crave for the actualization of what Maslow called the self fulfilment needs and
a better ending of their carrier service or blissful retirement period (Boeree, 2006).
A Sociological Analysis: Durkheims Strain Theory
21
Within the purview of sociology, Durkheims strain theory is found useful to explain sharp
practices in the retirement and death benefit administration. Norms are specific behavioural
standards in societies. They are ever-changing, shifting as society shifts; mutable, emergent,
reflective of inherent biases and interests; vary from class to class, and in the generation gap.
Contrary to norms is deviance. From the above characterizations, we can deduce that deviants
are criminals who challenge and oppose normal behaviours in groups and societies, and, thus,
engage themselves in sharp or corruptible practices, such people are unregulated, and fall under
anomie, lawlessness, and crime.
Emile Durkheim saw crime as a factor in public health, an integral part of all healthy society
(Durkheim, 1938). His strain theory of anomie attributes social deviance to extremes of the
dimensions of social bond categorized under three forms of suicide. Altruistic suicide (i.e. death
for the good of the group); egoistic suicide (i.e. death for the removal of the self due to or
justified by the lack of ties to others); and anomic suicide (i.e. death due to the confounding of
self-interest and societal norms). Likewise, Durkheim continued that individuals may commit
crimes for the good of an individual group, for the self due to or justified by lack of ties, or
because the societal norms that place the individual in check no longer have power due to
societys corruption. In this paper, Durkheim strain theory of anomie is applicable to a police
officer in retirement and death benefit office who become corruptible for the good of his group,
for the self due to or justified by lack of ties, or because the societal norms that place him in
check no longer have power due to societal corruption.
3.2
Research Methods
22
This section provides an overview of the research design, the population of the study,
sample size and techniques used for the study as well as sources of data for the study, research
instrument and method of data analysis.
3.2.1
Research Design
In this research work, the survey research design was used in the study. It was used to accurately
examine the sharp practices in the administration of retirement and death benefits in the Nigerian
police force.
3.2.2
Population/Sample
The population for this study comprise of the management and staff of the Nigerian
Police Force. The studys population consisted of Police Officers currently serving at the
Nigerian Police Force Headquarters in Benin City, Edo State, Nigeria.
3.2.3
simple random sampling allowed all element of the population an equal chance of being selected
for the sample population. The study population comprised police officers serving in the
Nigerian Police Headquarters in Benin City, Edo State, Nigeria. The studys population
comprised of two hundred and seventy five (275) police officers out of which a sample
population of two hundred (200) representing 72.2% of the total population was drawn.
23
24
The questionnaire was made up of two sections. The first section which is section A;
questions (1-6) contained the demographic data of the respondents, section B - F, questions (731) contained questions in line with the study objectives.
3.2.5
Data Analysis
The method of data analysis that was adopted for the analysis of the data gathered for the
study is the use of percentage analysis. Data collected were analyzed statistically and
calculations were done to indicate which of the variables received greater responses of the
subject participants.
CHAPTER FOUR
4.0
the research questionnaires distributed to two hundred police officers currently serving in the
Nigerian Police Headquarters in Benin City, Edo State, Nigeria. Also, all copies of the
questionnaire distributed were duly filled and returned, thus representing 100% ,response rate.
This is represented in the table below.
Table 4.1
NUMBER
PERCENTAGE (%)
275
100
200
72.7
200
100
Bio-Data Analysis
The result of the field work regarding section A of the questionnaire is presented below stating
with sex of the respondents, followed by age, educational status, marital status, religion and rank.
Table 4.2
Demographic characteristics of respondents
Sex
Number of respondents
Male
179
Female
21
Total
200
Age
Number of respondents
Less than 25 years
53
25-40 years
108
Greater than 40 years
39
Total
200
Educational qualification
Number of respondents
Primary
23
Secondary
98
Tertiary
79
Total
200
Marital Status
Number of respondents
Married
112
Single
79
Divorced
9
26
Percentage %
89.5%
10.5%
100%
Percentage %
26.5%
54%
19.5%
100%
Percentage %
11.5%
49%
39.5%
100%
Percentage %
56%
39.5%
4.5%
Total
Religion
Christian
Muslim
Pagan
Total
Rank
Constable
Corporal
Sergeant
Inspector
Assistant superintendent
Superintendent
Deputy superintendent
Chief superintendent
Total
Source: Field work, 2016
200
Number of respondents
144
53
3
200
Number of respondents
31
42
50
30
20
5
12
10
200
100%
Percentage %
72%
26.5%
1.5%
100%
Percentage %
15.5%
21%
25%
15%
10%
2.5%
6%
5%
100%
From table 4.2, it shows that the 179 (89.5%) of the respondents are male; while 21
(10.5%) of the respondents are females, indicating that the male police officers were more in the
respondents.
Table 4.2, also shows that 53(26.5%) of the respondents were less than 25 years, 108
(54%) were within the age bracket of 25 to 40 years and 39 (19.5%) were greater than 40 years.
This implies that majority of the respondents were within the age bracket of 25-40 years.
In educational qualification, 23 (11.5%) of the respondents had only primary education,
98 (49%) had up to secondary education and 79 (39.5%) had up to tertiary education. This
implies that a majority of the respondents had secondary education.
In view of their marital status, 112 (56%) of the respondents were married, 79 (39.5%)
were single and 9 (4.5%) were divorced. This implies that a majority of the respondents were
married.
27
Information in table 4.2 shows that with respect to religion of respondents, 144 (72%)
were Christians, 53 (26.5%) were Muslims, 3 (1.5%) were pagans. This implies that majority of
the respondents were Christians.
From table 4.2, it also shows that 31 (15.5%) of the respondents were constables, 42
(21%) were corporals, 50(25%) were sergeants, 30 (15%) were inspectors, 20 (10%) were
assistant superintendent, 5(2.5%) were superintendents, 12 (6%) were deputy superintendents
while 10 (5%) were chief superintendents. This implies that majority of the respondents were
corporals.
Table 4.3: Frequency distribution showing respondents views of the type of retirement and
death benefit offered in the Nigerian Police Force
S/
N
1.
Items
Yes
No
Total
154
77
46
23
200
100
2.
24
176
200
12
88
100
188
12
200
94
100
13
187
200
6.5
93.5
100
3.
4.
N
o
%
28
5.
26
174
200
13
87
100
(Source: Field Work, 2016 Response of respondents to questions 7-11 of Section B of the
research questionnaire)
Table 4.3 information shows that 154 (77%) of the respondents agreed that the Nigerian
Police Force offers lump sum benefit in the form of gratuity, based on the number of years of
service, while 46 (23%) did not agree to the assertion. With respect to terminal compensation
package, 24 (12%) of the respondents that agreed that the police force offer such a benefit, while
176 (88%) of the respondents disagreed with the assertion. The table also shows that 188 (94%)
of the respondents agreed that the police force offers monthly pension payments guaranteed for
life, the rate of payment being dependent on the length of years of service, while 12 (6%)
disagreed with the assertion. 13 (6.5%) of the respondents agreed that the police force offers
survival benefit, paid to the legal surviving spouse of the dead employee, while 187 (93.5%) of
the respondents disagreed to the assertion. With respect to accumulated contributions, which is a
one-time lump-sum payment equal to accumulated contributions being distributed among
primary beneficiaries of the dead employee in the absence of a surviving spouse, 26 (13%)
agreed that the police force offers such a benefit, while 174 (87%) disagreed with the assertion.
Thus from the above analysis, it shows that common benefits offered by the Nigerian Police
Force are Lump sum benefit in the form of gratuity, based on the number of years of service and
monthly pension payments guaranteed for life, the rate of payment being dependent on the length
of years of service.
Table 4.4: Frequency distribution showing sharp practices in the administration of
retirement and death benefits in the Nigerian Police Force
S/
N
Items
Yes
29
No
Total
12.
13
14
15
16
N
o
%
183
17
200
91.
5
107
8.5
100
93
200
53.
5
171
46.5
100
29
200
85.
5
14.5
100
121
79
200
60.
5
169
39.5
100
31
200
84.
5
15.5
100
(Source: Field Work, 2016 Response of respondents to questions 12-16 of Section C of the
research questionnaire)
Table 4.4 information shows that 183 (91.5%) of the respondents agreed that there are
delays in releasing retirement benefits to police officers upon retirements and death benefits to
eligible dependants upon the death of officers while in active service, 17 (8.5%) disagreed with
the assertion. 107 (53.5%) agreed that there are wrong computations of retirement and death
benefits, 93 (46.5%) of the disagreed with the assertion. 171 (85.5%) agreed that some officials
corruptly enrich themselves with retirement and death benefits funds by falsifying and adding
non-existing names to beneficiary list, thereby swelling up the cost of funding retirement and
death benefits, 29 (14.5%) disagreed with the assertion. 121 (60.5%) agreed that there are
restrictive and sharp practice in the investment and management of pension funds, 79 (39.5%)
disagreed with the assertion. Also, the table shows that 169 (84.5%) of the respondents agreed
that retired police officers and eligible dependants of police officers that died in active service
30
are being forced to queue up endlessly under rain and sun just for the payment of retirement and
death benefits. Thus from the above analysis, it shows that sharp practices in the administration
of retirement and death benefits in the Nigerian Police Force include delays in releasing
retirement benefits to police officers upon retirements and death benefits to eligible dependants
upon the death of officers while in active service, wrong computations of retirement and death
benefits, some officials corruptly enrich themselves with retirement and death benefits funds by
falsifying and adding non-existing names to beneficiary list, thereby swelling up the cost of
funding retirement and death benefits, restrictive and sharp practice in the investment and
management of pension funds and forcing retired police officers and eligible dependants of
police officers that died in active service to queue up endlessly under rain and sun just for the
payment of retirement and death benefits. Also, the analysis shows that among all the sharp
practices, delays in releasing retirement benefits to police officers upon retirements and death
benefits to eligible dependants upon the death of officers while in active service happens to be
the most common sharp practice.
Table 4.5: Frequency distribution showing factors responsible for sharp practices in the
administration of retirement and death benefits in the Nigerian Police Force
S/
N
17.
18
19
Items
Yes
No
Total
173
27
200
86.
5
13.5
100
138
62
200
69
31
100
176
24
200
31
o
%
20
21
88
12
100
130
70
200
65
35
100
189
11
200
94.
5
5.5
100
N
o
%
(Source: Field Work, 2016 Response of respondents to questions 17-21 of Section D of the
research questionnaire)
From table 4.5, with respect to the factors responsible for sharp practices in the
administration of retirement and death benefits in the Nigerian Police Force, 173 (86.5%) of the
respondents agreed that government delays in releasing retirement benefits to police officers
upon retirements and death benefits to eligible dependants upon the death of officers while in
active service, while 27 (13.5%) disagreed with the assertion. 138 (69%) of the respondents
agreed that lack of effective regulation and supervision of the retirement and death benefit
scheme in Nigeria is a factor, while 62 (31%) disagreed with the assertion. 176 (88%) of the
respondents agreed that the inability to identify better methods, procedures in processing
retirement and death benefits for police officers is a major factor, while 24 (12%) disagreed with
the assertion. 130 (65%) of the respondents agreed that the Inability to identify effective ways
and means of accounting for retired police officers and caring for their welfare, while 70 (35%)
disagreed with the assertion. 189 (94.5%) agreed that corruptible nature of some police officer is
a major factors, while 11 (5.5%) disagreed with the assertion. Thus, from the above analysis, it
shows that corruptible nature of some police officer, the inability to identify better methods,
procedures in processing retirement and death benefits for police officers and government delays
in releasing retirement benefits to police officers upon retirements and death benefits to eligible
32
dependants upon the death of officers while in active service are major factors responsible for the
sharp practices in the police force.
Table 4.6: Frequency distribution showing the effects of sharp practices in the
administration of retirement and death benefits on Police Officers motivation and
commitment levels
S/
N
22
23
24
25
26
Items
Reduced the quality of service delivery.
Yes
No
Total
N
o
%
166
34
200
83
17
100
N
o
%
154
46
200
77
23
100
N
o
%
181
19
200
90.
5
9.5
100
N
o
%
154
46
200
77
23
100
N
o
%
168
32
200
84
16
100
(Source: Field Work, 2016 Response of respondents to questions 22-26 of Section E of the
research questionnaire)
From table 4.6, with respect to the effect of sharp practices in the administration of
retirement and death benefits on Police Officers motivation and commitment levels, 166 (83%)
of the respondents agreed that it reduced the quality of their service delivery, while 34 (17%)
disagreed with the assertion. 154 (77%) agreed that it reduced their job motivation level, while
46 (23%) were in disagreement with the assertion. 181 (90.5%) agreed that it reduced their job
commitment level, while 19 (9.5%) disagreed with the assertion. 154 (77%) of the respondents
33
agreed that it makes them to be seeking for other better alternative jobs, while 46 (23%)
disagreed with the assertion. 168 (84%) of the respondents agreed that it reduced their job
satisfaction level, while 32 (16/5/0 disagreed with the assertion. Thus, from the above analysis, it
shows that reduction of police officers job commitment and their job satisfaction are the major
effect of sharp practices in the administration of retirement and death benefits in the force.
Table 4.7: Frequency distribution showing the ways in which sharp practices in the
administration of retirement and death benefits in the Nigerian Police Force can be
curtailed
S/
N
27
28
29
30
31.
Items
Yes
No
Total
181
19
200
90.
5
9.5
100
149
51
200
74.
5
25.5
100
183
17
200
91.
5
8.5
100
179
21
200
89.
5
10.5
100
188
12
200
94
100
(Source: Field Work, 2016 Response of respondents to questions 27-31 of Section F of the
research questionnaire)
34
From table 4.7, with respect to the solutions to the sharp practices in the administration of
retirement and death benefits in the Nigerian Police Force, 181 (90.5%) proposed that
government should ensure that funds meant for retirement and death benefits are release as at
when due, 19 (9.5%) disagreed with the assertion, 149 (74.5%) proposed that effective regulation
and supervision of the retirement and death benefit scheme in Nigeria should be put in place by
government, 51 (25.5%) disagreed with the assertion. 183 (91.5%) of the respondents agreed that
effective method and procedures for processing retirement and death benefits for police officers
should be put in place by government, 17 (8.5%) disagreed with the assertion. 179 (89.5%)
agreed that effective ways and means of accounting for retired police officers should by put in
place by government, while 21 (10.5%) disagreed with the assertion. 188 (94%) agreed that
corrupt officers caught with such sharp practices should be prosecuted accordingly, while 12
(6%) disagreed with the assertion. Thus from the above analysis, it shows that prosecution of
corrupt officers caught with such sharp practices, putting in place effective method and
procedures for processing retirement and death benefits for police officers and timely release of
funds meant for retirement and death benefits by government are the most common solutions
suggested they respondents.
4.8
Hypotheses Testing
There are three hypotheses underlying the study. These hypotheses were analyzed and
interpreted based on the results of the questionnaires using chi square statistics.
Decision Rule
If under this analysis the SPSS computed value of the chi-square (X 2) is greater than the
critical value of the test statistics (that is, value read from table) at a given degree of freedom, we
could conclude that the observed frequency differ significantly from the expected frequency and
35
we would reject the null hypothesis (Ho) at the corresponding level of significance, otherwise we
accept it.
Test for Hypothesis One
Ho: There are no sharp practices currently in the administration of retirement and death benefits
in the Nigerian Police Force.
Ha: There are sharp practices currently in the administration of retirement and death benefits in
the Nigerian Police Force.
Hypothesis one is analyzed and interpreted by collating the average responses from the
questions relevant to ascertaining if there are sharp practices in the administration of retirement
and death benefits in the Nigerian Police Force, which is questions 12-16 of section C of the
research questionnaire.
Thus, the average responses are presented in a table of observed frequencies and chisquare statistics will be used for the analysis. A table is shown below.
Table 13: Are there sharp practices in the administration of retirement
and death benefits in the Nigerian Police Force?
Frequency
Percent
Yes
150
75
No
50
25
200
100.0
Total
(Source: Field Work, 2016 Average response of respondents to question 12-16 of section C
of the research questionnaire)
36
Computation of Chi-square
The corresponding chi-square computation from SPSS is given below.
Table 14: Test Statistics - Are there sharp practices in the administration of retirement
and death benefits in the Nigerian Police Force?
50.000a
Chi-Square
Df
Asymp. Sig.
.000
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency
is 100.0.
37
2.
3.
4.
5.
Items
Yes
No
Total
173
27
200
86.
5
13.5
100
138
62
200
69
31
100
176
24
200
88
12
100
130
70
200
65
35
100
189
11
200
38
o
%
94.
5
5.5
100
Thus, from table 15, it shows that corruptible nature of some police officer, the inability
to identify better methods, procedures in processing retirement and death benefits for police
officers and government delays in releasing retirement benefits to police officers upon
retirements and death benefits to eligible dependants upon the death of officers while in active
service are major factors responsible for the sharp practices in the police force. Thus, the null
hypothesis accepted, which states that lack of a comprehensive accounting standard is not the
only factor responsible for the sharp practices in the administration of retirement and death
benefits in the Nigerian Police Force, but other factors.
Inference:
From the analysis above, it can be inferred that lack of a comprehensive accounting
standard is not the only factor responsible for the sharp practice in the administration of
retirement and death benefits in the Nigerian Police Force. Other factors are also responsible for
these sharp practices, such as government delays in releasing retirement benefits to police
officers upon retirement and death benefits, lack of effective regulation and supervision of the
retirement and death benefit scheme in Nigeria, inability to identify better methods, procedures
in processing retirement and death benefits for police officers, and also the corrupt nature of
some police officers.
Test for Hypothesis Three
Ho: Sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force do not have negative effect on the Police Officers motivation and commitment levels.
39
Ha: Sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force have negative effect on the Police Officers motivation and commitment levels.
Hypothesis three is analyzed and interpreted by collating the average responses from the
questions relevant to ascertaining the effect of the sharp practices in the administration of
retirement and death benefits in the Nigerian Police Force, which is questions 22-26 of section E
of the research questionnaire.
Thus, the average responses are presented in a table of observed frequencies and chisquare statistics will be used for the analysis. A table is shown below.
Table 16: Does the sharp practices in the administration of retirement and death
benefits in the Nigerian Police Force have negative effect on the officers job
commitment level?
Frequency
Percent
Yes
164
82
No
36
18
Total
200
100.0
(Source: Field Work, 2016 Average response of respondents to question 22-26 of section E
of the research questionnaire)
Computation of Chi-square
The corresponding chi-square computation from SPSS is given below.
Table 17: Test Statistics - Does the sharp practices in the administration of retirement
and death benefits in the Nigerian Police Force have negative effect on the officers job
commitment level?
81.920a
Chi-Square
Df
Asymp. Sig.
.000
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency
is 100.0.
40
41
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
The study examined the sharp practices in the administration of retirement and death
benefits in the Nigerian Police Force. In doing so, the study used data collected from the research
questionnaires and the data collected were analyzed using percentage analysis.
In examining the examine the sharp practices in the administration of retirement and
death benefits in the Nigerian Police Force, issues on the types of retirement and death benefits
administered in the Nigerian Police Force, the nature of sharp practices in the administration of
retirement and death benefits in the Nigerian Police Force, factors responsible for sharp practices
in the administration of retirement and death benefits in the Nigerian Police Force, the effect of
sharp practices in the administration of retirement and death benefits on Police Officers
motivation and commitment levels and ways in which the sharp practices in the administration of
retirement and death benefits in the Nigerian Police Force can be curtailed, were considered.
Furthermore, the study was made up of five chapters. Chapter one of the study provided
an introductory background to the study, chapter two reviewed related literature, chapter three
was on the research methodology, while chapter four was on the data presentation and analysis.
A total of two hundred questionnaires were administered and retrieved from a sample of
two hundred (200) police officers in Police Headquarters, Benin City. All copies of the
questionnaire were duly filled and returned. The study reveals the following:
i) There are sharp practices currently in the administration of retirement and death benefits in
the Nigerian Police Force.
ii) Lack of a comprehensive accounting standard is not the only factor responsible for the sharp
practices in the administration of retirement and death benefits in the Nigerian Police Force,
42
but other factors such as government delays in releasing retirement benefits to police officers,
lack of effective regulation and supervision of the retirement and death benefit scheme.
iii) Sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force have negative effect on the Police Officers motivation and commitment levels.
5.2
Conclusion
This study has discussed extensively on sharp practices in the administration of
retirement and death benefits in the police force. The concept of retirement and death benefits,
the problem with retirement benefit in Nigeria and the factors responsible for these sharp
practices have been duly discussed in the course of this project work. The problem of retirement
and death benefits payment and its administration is not just a national issue but a global
phenomenon. This research has shown that there are sharp practices being perpetuated in the
administration of retirement and death benefits in the Nigerian Police Force. It has also shown
that sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force have negative effect on the Police Officers motivation and commitment levels. Therefore,
a well organized retirement and death benefits system that will ensure prompt payment of police
officer retirees and their dependants relatives in the case of death benefits is highly desirable and
this must be rigorously pursued by government.
5.3
Recommendations
On the basis of the findings the following recommendations were made:
1. Government should up-grade and increase retirement and death benefit whenever
wages and salaries of workers are increased. This would enable retirees to have higher
retirement benefits, which will enable them purchase their basic needs, and enjoy
improved lifestyles at all times;
43
2. Government should bring retirement and death benefit offices closer to the people in
local government areas with adequate facilities in place, such as canopies to shield the
retirees especially from heat of the sun and rain since they receive services in open
spaces;
3. Prompt and regular payment of retirement and benefits schemes such as gratuities and
pensions are inevitable for their survival, to justify the key objective of the Pension
Reform Act 2004, and to enable retirees such as pensioners plan and manage their
retirement benefits judiciously; and
4. Adequate monitorization and supervision of retirement and death benefit
administration officers on their duty-posts are crucial. This would help to control all
manner of delaying tactics used to facilitate bribery and corruption, and to apply all
necessary sticks and sanctions to stop it e.g. immediate termination of
appointment/employment of any officers found corruptible.
44
REFERENCES
Abromovits, L. (2013). Protecting and Rebuilding your Retirement Benefit. (New York: McGraw
Hill Press) p. 16.
Adams, R. A. (2005). Public Sector Accounting and Finance. (3rd Edition). (Lagos: Nigeria
Corporate Publishers Venture) p. 19.
Adebayo, Y. K. (2010). Essentials of Human Resource Management. (Benin: Weliscops
Services) p. 13.
Akinyemi, S. (2012). The Contributory Pension Scheme: Institutional and Legal Frameworks,
Mediterranean Journal of Social Sciences (3)1, pp. 56-63.
Ali, S. (2014) Pension List Area requiring amendment in Pension Act, Daily Independent,
Wednesday, March 28, p.7
Anazodo, R., Okoye, J. C. & Ezenwile, U. (2012) Leadership-Corruption: The bane of Nigeria
Development, African Journal of Social Sciences, Vol.2, No.2, pp.59-68
Armstrong, M. A. (2010). Handbook of Personnel Management Practice. (London: Kogan Press)
p. 221.
Azelama, D. (2002) Unethical Practices in Nigerian Public Sector, Abuja, Scheman Publishing
Company
Balogun, A. (2006). Understanding the New Pension Reform Act 2004, International Social
Security Review, 59(4), pp. 34-44.
Boeree,
G.
(2006).
Abraham
Maslow.
http://webspaces.ship.edu/cgboer/maslow.html.
Available
online
at:
Bogomolova, T. (2005). Pension Economics: Basic Concepts and Relationship- (Geneva: World
Bank Publication).
45
47
48
APPENDIX
BENSON IDAHOSA UNIVERSITY
FACULTY OF SOCIAL & MANAGEMENT SCIENCES
DEPARTMENT OF SOCIOLOGY & ANTHROPOLOGY
RESEARCH QUESTIONNAIRE
SECTION A (Bio-Data)
1.
2.
3.
4.
5.
6.
] Assistant
SECTION B: This section of the questionnaire is to elicit from you the type of retirement and
death benefit offered in the Nigerian Police Force. Please tick the box as appropriate.
S/N
7.
8.
9.
10.
11.
What are the type of retirement and death benefits offered by the Yes
Nigerian Police Force?
Lump sum benefit in the form of gratuity, based on the number of
years of service.
Terminal compensation package.
Monthly pension payments guaranteed for life, the rate of payment
being dependent on the length of years of service.
Survival benefit, paid to the legal surviving spouse of the dead
employee.
Accumulated Contributions, which is a one-time lump-sum
payment equal to accumulated contributions being distributed
among primary beneficiaries of the dead employee in the absence
of a surviving spouse.
49
No
SECTION C: This section of the questionnaire is to elicit from you if there are sharp practices in
the administration of retirement and death benefits in the Nigerian Police Force.
S/N
12.
13.
14.
15.
16.
No
SECTION D: This section of the questionnaire is to elicit from you the factors responsible for
sharp practices in the administration of retirement and death benefits in the Nigerian Police
Force.
S/N
17.
18.
19.
20.
21.
Which of the following factors is/are responsible for the sharp Yes
practices in the effective administration of retirement and death
benefit in the Nigerian Police Force?
Government delays in releasing retirement benefits to police
officers upon retirements and death benefits to eligible dependants
upon the death of officers while in active service.
Lack of effective regulation and supervision of the retirement and
death benefit scheme in Nigeria.
Inability to identify better methods, procedures in processing
retirement and death benefits for police officers.
Inability to identify effective ways and means of accounting for
retired police officers and caring for their welfare.
Corruptible nature of some police officer.
No
SECTION E: This section of the questionnaire is to elicit from you the effects of sharp practices
in the administration of retirement and death benefits on Police Officers motivation and
commitment levels.
50
S/N
22.
23.
24.
25.
26.
No
SECTION F: This section of the questionnaire is to elicit from you the ways in which sharp
practices in the administration of retirement and death benefits in the Nigerian Police Force can
be curtailed.
S/N
27.
28.
29.
30.
31.
51
No
52
30
40
17
35
25
15
30
20
32
21
10
275