COLLECTIVE RISK MITIGATION OF PENSION CRISIS IN NIGERIA: TOWARDS ORGANISATION'S STABILITY AND OLD AGE SECURITY

The adoption of Defined Contribution (DC) from Pension Reform Act 2004 (the Act) is expected to give a permanent solution to pension crisis in Nigeria. Contrary to this, pensioners have continued to witness nonpayment of their pension arrears emanating from employers' failure to abide by the provision of the Act (amended 2014). This has forced some employees to look elsewhere for new jobs despites the increasing layoffs in the current economic downturn. A purposive random sampling technique was used to source data from 1,200 employees in formal sector to determine factors influencing their job attraction and retention. To bring about stable workforce, and in order to ensure that pension scheme is designed to meet the needs of employees and employers, Two Sided View (TSV) was employed while Three Staged Decision (TSD) was used to arrive at two combinations of organisation's incentives most appealing to employees out of fifteen made available to them. The results showed that funded pension and job security are most sought after in employment while rapid promotion and career development are least sought after, and these choices of employees is strongly associated with level of satisfaction. Based on these findings, a number of recommendations were made including proposal for Employee's Pension Retention Scheme to replace the current DC in order to ensure retiring employees have access to pension scheme as and when due.