- 20 Marks
PSAF – May 2019 – L2 – Q2 – Pension Accounting in the Public Sector
Discuss the objectives of the Pension Reform Act and roles of pension administrators and custodians.
Question
In compliance with the extant directive of the Federal Government that all retiring employees should be documented in the year prior to that in which they are to retire, Hajia Muslima Ladipo applied to be registered in 2016.
She was employed as a junior officer on Grade Level 04 in the Ministry of Goods Exchange & Exhibition on July 1, 1981. She rose through the rank and was finally promoted to chief exhibition officer on salary grade level 14 on January 1, 2016.
The result and letter of her promotion were released in mid-2016. For documentation, national officers are posted to the nearest cities to their places of work/residence for the exercise. Hajia was therefore documented in Ibadan being the nearest centre to Lagos where her office was situated.
Retiring officers are to produce evidence of employment and retirement at the documentation centre and also be present physically for a biometric process.
Hajia retired from service with effect from June 30, 2017. She complained that she had not received any gratuity and her name was not in the pension register.
Required:
a. Identify four main objectives of the Pension Reform Act 2014, as it relates to employees. (8 Marks)
b. Explain three roles/functions of each of the Pension Fund Administrators and the Pension Fund Custodians. (6 Marks)
c. State whether any of the objectives of the Pension Reform Act has been breached in the case of Hajia Muslima Ladipo. (2 Marks)
d. Identify four documents required for proper documentation of a retiring officer under the guidelines issued by the Federal Government. (2 Marks)
e. Identify two categories of officers specifically exempted by Section 5 of the Pension Reform Act. (2 Marks)
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