A pension plan is defined as a retirement plan that requires an employer to make contributions to a pool of funds set aside for worker’s future benefit. However, neither the federal nor state governments maintained any sustainable pension pool that was invested to yield reasonable income to pay workers’ retirement benefit. By the 1980s, retired workers were already experiencing delays in payment of their entitlements from federal and state governments. A pension plan could be either defined benefit or defined contributory. Many employers still deduct contributions from their workers without either adding their portions or remitting such to pension fund administrators.

Source: Nigerian Tribune July 12, 2021 08:03 UTC