IFE PsychologIA

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Impact of service delivery in pension industry on fraud reduction and employees' motivation for quality service

Joshua Solomon Adeyele, Saratu Lassa Jim-Suleiman


Pension scheme is an important motivational tool for the protection of employees’ old age at retirement. To make this a reality, Pension Reform Act 2004 (PRA) was amended in 2014. This reform allows contributions between employees and employers. Following the implementation of this reform, there has been alleged irregular remittance of statutory pension contributions among employers due to weak monitoring to enforce compliance by the regulatory body. Hence, this study was designed to examine the extent of irregular remittances in public institutions and determine whether prompt remittances will motivate employees to offer efficient and quality service. Data were sourced from 211 employees in selected federal institutions in Jos Metropolis. Different inferential statistics were used to analyse the data collected. The result of the findings revealed that regulatory control has positive and significant impact on employers’ compliance to pension remittances; service delivery by employers has significant positive impact on fraud reduction among employers but not significant for the Pension Fund Administrators (PFAs) and Pension Commission (PenCom). Similarly, efficient quality service by PFAs and PenCom significantly influence employees’ motivation to offer quality service in their respective organisations; and that compliance with PRA has strong relationship with good investment performance which also serves as an incentive to employees to offer quality service. On the basis of these findings, this study concluded that a strong and efficient regulatory control will drastically lead to fraud reduction among key players. Hence, the study recommended among other things that the PenCom needs to intensify regulatory control to prevent fraudulent practices among employers and PFAs.

Keywords: pension remittances, service delivery, defined contribution

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