Effect of Voluntary Contribution on Contributory Pension Assets of Federal Government Employees in Kwara State

Abstract

The introduction of the Contributory Pension Scheme (CPS) in Nigeria has over the years undergone a series of amendments since its inception. With this perception aimed at improving the welfare of retirees seems noticeable for the purpose of increasing employees’ assets. Whether these assets increase or not is yet to be registered and made public even with the inclusion of voluntary contribution in the repealed Act PRA 2014. This study is on the effect of voluntary contribution on the assets of federal government employees in Kwara state. This study's hypothesis is that there is a positive effect between voluntary contribution on the employee’s assets in the federal ministries, departments and agencies in Kwara state. The study employed a descriptive survey research design that is cross-sectional in nature to ascertain the effectiveness of the voluntary contribution for increased pension assets. The study used simple random sampling from among the population of federal employees serving in ministries, departments and agencies in Kwara state. Both descriptive and inferential statistics were used to analyze the data using regression analysis with the aid of SPSS version 25.0. The study found that there is a positive significant effect between voluntary contributions and contributory pension assets of employees with (p < 0.0001) which means that voluntary contributions have effect on contributory pension assets on employees. Therefore, employees should delve into having a more robust voluntary contribution to increase their pension assets at retirement.