AJIBOLA RESEARCH PROJECT

1

AN ANALYSIS OF THE EFFECT OF INFLATION ON

THE RETIREMENT BENEFITS OF INDIVIDUALS

BY

OKUNGBAYE, AJIBOLA ELEAZAR

MATRIC NO

120202043

BEING A RESEARCH PROJECT SUBMITTED TO THE

DEPARTMENT OF ACTUARIAL SCIENCE AND INSURANCE,

FACULTY OF BUSINESS ADMINISTRATION, UNIVERSITY OF

LAGOS.

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

AWARD OF BACHELOR OF SCIENCE (B.SC) DEGREE IN

ACTUARIAL SCIENCE.

JUNE, 2016

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CERTIFICATION

I certify that this research work was carried out by OKUNGBAYE, AJIBOLA ELEAZAR

with Matriculation No. 120202043 under the supervisor in the department of actuarial science

and insurance, university of Lagos.

Dr. I.A Adeleke (Project supervisor) Date

___________________________

Head of Department Date

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DEDICATION

This project is dedicated to almighty God to who has seen me thus far. Thank you Jesus.

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ACKNOWLEDGEMENT

I return all the glory to the holy one of Israel, the love of my life for being my life support

since the very day I was born.

My sincere thanks to my supervisor Dr I.A Adeleke for his immense advice and assistance

through the duration of my project study. May the almighty broaden your intellectual horizon,

my course adviser Mrs Oke-osi, thanks for always being available when I needed your help.

To my father, Elder Okungbaye .S. Olabanji thanks for being the best father I could ever have

wished for, even with your words and scolding, you always reassured me that I can be the

best in all my endeavours.

To my mother Mrs E.O Okungbaye, if I could come to the world again i’d still choose you,

thanks for your love, prayers and counsel.

To my amazing siblings Ayomitide and Atinjolaoluwa thanks for making my life go round,

though we might argue at times but you are the best I can ever ask for.

To my pastor, G.O Babatunde thanks for your prayers may the good Lord continue to bless

you, to my pal Michael Adetula thanks for keeping me company when I needed it the most,

the entirety of the Okungbaye and Ogunmodede families thanks for being supportive.

To my dear friends Babalola seun, Fatunbi Abayomi, Oluwatobi Mark, Taiwo olayinka,

Olofin Samson, Olookere Abiola, Alomaja Juliana, Ogweda Haruna and the whole A101

King jaja hall, all my friends and ex roommates throughout my course of study that I could

not mention , thanks for making the past 4 years of my life worthwhile.

To my project partners onowho damilola, Julia okpoko ,muili olakanmi, dammyfresh thanks

for supporting me, we would meet at the top in jesus name

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To my lover and my Lord, this is my return.

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ABSTRACT

Retirement is an inevitable stage of ageing where the individual gradually disengages from

the main stream of active work, social work and is eventually replaced with younger ones.

This study is aimed at analyzing how inflation affects the value of retirement benefits of

retirees and also study the relationship between entry age and retirement benefits. The

general model of inflationary effects was used in calculating the present values of retirement

benefits using the academic and non academic staffs of the University of Lagos as a case

study. At the end of this study it was realised that inflation has a negative effect on retirement

benefits which increases steadily with an older entry age. In conclusion, it would be advisable

if employees work for longer years so as to increase the amount accessible to them after

retirement and moreover purchase securities that realise high returns to counter balance the

effect of inflation.

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TABLE OF CONTENTS

Title Page i

Certification ii

Dedication iii

Acknowledgment iv

Abstract vi

Table of Content vii

CHAPTER ONE

1.0 Introduction 1

1.1 Background to the study 1

1.2 Statement of the problem 3

1.3 Aims and objectives of the study 5

1.4 Research questions 5

1.5 Significance of the study 6

1.6 Scope of the study 6

1.7 Definition of terms 6

CHAPTER TWO

2.0 Literature review 10

2.1 Preamble 10

2.2 Theoretical framework 10

2.2.1 Benefit formula 11

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2.2.2 How inflation affects individual's retirement benefits 12

2.3 Conceptual framework 14

2.3.1 Retirement saving account 15

2.3.2 Forms of retirement 17

2.3.3 Highlights of the contributory pension scheme in 18

nigeria

2.3.4 Elements of the new contributory pension scheme 18

2.3.5 Privately Managed: Pension Fund Administrators 21

and Pension Fund Custodians

2.3.6 Provisions of various means of withdrawal according 21 to the pension act of 2014

2.3.7 Pension Benefits In Retirement 23

2.4 Empirical review 25

2.5 Nigeria business environment 28

CHAPTER 3

3.0 Research methodology 31

3.1 Preamble 31

3.2 Source of data 31

3.3 Description of data 31

3.4 Data analysis technique 31

3.4.1 Growth of pension benefits : inflation 32

3.4.2 General model of inflationary effects 32

CHAPTER 4

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4.0 Data presentation and analysis 34

4.1 Preamble 34

4.2 Presentation of data 34

4.3 Analysis of data 34

4.3.1 Tables for academic staffs 35

4.3.2 Tables for non academic staffs (executive officer) 38

4.3.3 Tables for non academic staffs (technical officer) 42

4.3.4 Tables showing accumulation of contribution accounting 47

for real rates of return in an inflationary environment

4.4 Summary of research findings 50

CHAPTER 5

5.0 Summary of findings, conclusion and recommendations 51

5.1 Preamble 51

5.2 Summary 51

5.3 Conclusion 51

5.4 Recommendations 52

References 53

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CHAPTER 1

INTRODUCTION

1.1 Background to the study

The introduction of the Pension Reform Act 2004 (“Old Act”) led to the creation of a new

class of money managers in Nigeria. According to Odia and Okoye (2012), “the system of

pensions was introduced into Nigeria by the Colonial administration pre Nigeria’s

independence from the British Empire. The first legislative document on pensions in Nigeria

was the 1951 Pension Ordinance which had retroactive effect from January 1, 1946. The

Ordinance provided public servants with both a pension and a gratuity (Ahmad, 2006). The

National Provident Fund (NPF) scheme established in 1961 was the first legislation to address

pension matters of private organizations in Nigeria. This was the first social protection

scheme for the non-pensionable private sector employees in Nigeria. It was mainly a saving

scheme where both employee and employer contributed the sum of N4 each on a monthly

basis. The scheme provided for only one-off lump sum benefit payment (Ahmad, 2006)”.

On 1 July 2014, President Goodluck Jonathan signed into law the new Pension Reform Act

2014 which repealed the Pension Reform Act of 2004 (repealed Act). The key objectives of

the reform are to ensure contributors receive their benefits as and when due and to assist

improvident individuals to save in order to cater for their livelihood during old age.

The pension reform act of 2014 was enacted to correct some shortcomings of the 2004

pension act which include

i. Conversion from a largely based defined benefit system to a defined contribution

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ii. The exemption of any interest,profit,dividend,investments and other income accruable

to the pension fund from task

iii. The right to choose their PFA which was existent but now covers employees whose

employers operate a closed pension scheme

iv. In addition, for all working individuals to be under the pension scheme whether the

private sector or the public sector

Prior to the pension reform act (2014) i.e, from Jan 1st to July 2004 Nigeria operated a

defined benefit pension scheme. This defined benefit pension scheme is divided into

i. The non earning based plan which provides a fixed benefit to all qualified workers or

per year of service

ii. The earning defined benefit to each worker who achieves sufficient years of service

and reaches the age of eligibility for benefits.

For instance, in Nigeria under the Old Act, an employee contributes 7.5% of his monthly

emolument while the employer also contributes same amount or more depending on the

category of employee. The retirement benefit is variable depending on the performance of the

investment selected. In defined benefit plan, the retirement benefits is stipulated usually as a

percentage of average salary, but the contribution will vary according to the percentage of the

average compensation a participant receives during his or her three earning years under the

plan (Owojori, 2008). The Revised Act has now moved the contribution rates upward. An

Employer is obliged to deduct and remit contributions to a Custodian within 7 days from the

day the employee is paid his salary while the Custodian shall notify the PFA within 24 hours

of the receipt of the contribution. Contributions and retirement benefits are tax exempt. The

employee opens an account known as a Retirement Savings Account (“RSA”) in his name

with a Pension Fund Administrator of his choice. This individual account belongs to the

employee and will remain with him through life. He may change employers or pension fund

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administrators but the account remains the same. However, this is still under review. The

employee may only withdraw from this account at the age of 50 or upon retirement thereafter.

The scheme requires pension funds to be privately managed by Pension Fund Administrators

(“PFAs”) and Pension Fund Custodians (“PACs”). Pension Fund Administrators have been

duly licensed to open retirement savings accounts for employees, invest and manage the

pension funds in instruments specified by the investment guideline approved and occasionally

modified by the National Pension Commission in Nigeria (“Pencom”) from time to time,

maintain books of accounts on all transactions relating to the pension funds managed by it,

provide regular information on investment strategy to the employees or beneficiaries and pay

retirement benefits to employees in accordance with the provisions of the Act. The usefulness

of the PFAs to the RSA account holder should therefore not be limited to safe custody of

funds under management but also the ability to earn good return on investment. Pension Fund

Custodians are responsible for the warehousing of the pension fund assets. It is envisaged that

at no time will the PFAs hold the pension funds’ assets. The employer sends the contributions

directly to the Custodian, who notifies the PFA of the receipt of the contribution and the PFA

subsequently credits the retirement savings account of the employee. The Custodian will

execute transactions and undertake activities relating to the administration of pension fund

investments upon instructions by the PFA. Pencom is the regulator for the Nigerian pension

fund industry and prepares reports annually, quarterly and monthly on the state of the

industry. The Pension fund management industry have four different categories of accounts,

RSA active (”RSA”), RSA Retiree (”Retiree”), Closed Pension Fund Accounts (”CPFA”) and

Approved Existing Scheme (”AES”).

1.2 Statement of the problem

Demand-pull theory suggests that inflation is caused by the increase in demand. On the other

hand cost-push theory implies that inflation is caused by the increase in production costs,

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which are passed on to final goods prices There is no doubt that pension fund investment, as

any other investment cannot be exonerated from inflation risk given the fact that the time

horizon for pension fund investment is longer. The possibility of inflation to reduce the

optimal value cannot be ruled out even in countries with high macroeconomic stability. Hence

Individuals saving for retirement must make sure their wealth finances their expenses in

retirement, whatever the inflation scenario. The liabilities of pension funds and endowments

are likely to increase in nominal terms with inflation.

According to a research conducted by the society of actuaries in the year 2004, retirees are

more likely to be concerned about inflation risk than about any other risk examined in the

2003 Risks and Process of Retirement Survey (57% are very or somewhat concerned). Pre-

retirees are even more likely to be concerned about inflation (78%), but they are just as likely

to be concerned about having enough money to pay for good health care (79%). Less than half

of retirees and seven in ten pre-retirees are concerned that they might not be able to maintain a

reasonable standard of living for the rest of their (and their spouse’s) lives. Four in ten

retirees and two-thirds of pre retirees are concerned that they might deplete all of their savings

and rely solely on Social Security.

The focus on inflation can be linked to the primary strategy for risk management, reducing

spending.

Except for Social Security which is not available in Nigeria, most retirees do not have regular

income that is adjusted for inflationary increases and the increase in Social Security is often

less than the corresponding increase in medical costs. Low interest rates compound the

problem for those with fixed income investments.

Assessing the adequacy of retirement income from DC pensions and the risks involved is far

from straightforward. For one, the adequacy of income depends on the interaction among

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various pension parameters, some of which are beyond the control of individuals and policy

makers. The final realisations of returns on investment, inflation, discount rates and life

expectancy are key sources of this type of uncertainty. But risks to adequacy of retirement

income can also arise from choices individuals, employers and policy makers make regarding

parameters, such as the level of contributions, the length of the contribution and accumulation

periods, the structure of the payout phase (that is, how assets accumulated at retirement are

allocated), and on whether there are other sources of income to finance retirement, such as

public pensions and defined benefit pension arrangements (Antolin, 2008).

Therefore there is a need to study the relationship between these sources of uncertainties and

retirement benefits, with inflation the source in focus.

1.3 Objective of the study

i. To identify the effect of inflation on retirement benefits

ii. To investigate the relationship between various ages of employment and the

retirement benefits in an inflationary environment

1.3 Research questions

At the end of this study, the following research questions would be answered

i. To whatextent does inflation affect the real value of retirement benefits?

ii. What effect does the age of retirement have on the retirement benefits?

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1.4 Significance of the study

The significance of the study cannot be overemphasised when the importance that will be

accrued from it is considered

The aim of every researcher is to discover certain truths that will contribute to the existing

body of knowledge and of course, the primary reason of this research is to make useful

contribution to the topic.

Generally this paper would prove very much useful in highlighting the importance of savings

and also highlight the impact of inflation on the retirement savings account of individuals.

Besides, it will of importance to academicians or researchers who are or may be interested in

the topic

1.5 Scope of the study

This study is to examine the relationship that exists between inflation and retirement savings

account and retirement benefits of individuals. I am interested in the accumulation and

withdrawal phases as well as the impact of inflation on retirement benefit. This research is

limited to the academic and non academic staffs of the university of Lagos

1.6 Definition of terms

1.6.1 Retirement savings account :

A Retirement Savings Account is a requirement under the Pensions Reform Act 2014. It is

the account used to capture information of the contributor as well as the monthly pension

contributions of the contributors from all sources- employee, employer, and/or AVCs. It also

shows the return on investments over time.

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1.6.2 Pension fund administrator :

A Pension Fund Administrator (PFA) is charged with the responsibility of managing and

investing the pension funds and assets. It is the responsibility of the PFA to; Open a

Retirement Savings Account (RSA) for all employees who choose it.

1.6.3 Retirement :

This is the point when a person stops employment completely. A peron might lso semi retire

by reducing work hours.

1.6.4 Pension :

A pension is a fund into which a sum of money is added during an employee’s employment

years and from which payments are drawn to support the persons retirement from work in the

form of periodic payments

1.6.5 Retirement plan:

A savings and investment plan that provides income during retirement. It is often created by

companies or government for the employees.

1.6.6 Defined contribution plan :

A company retirement plan in which the employees elect to defer some amount of his/her

salary into the plan and bears the investment risk.

1.6.7 Employee :

A person who is hired to provide services to a company on regular basis in exchange for

compensation and who does not provide these services as part of an independent business.

1.6.8 Employer :

A legal entity that controls and directs a servant or worker under an express or implied

contract of employment and pays him/her salary or wages in compensation

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1.6.9 Inflation:

This is the rate at which the general prices of goods and services is rising, and consequently,

the purchasing power of currency is falling. Central banks attempt to limit inflation, and

avoid deflation, in order to keep the ecomomy smooth running

1.6.10 Accumulation period :

Period for which an annuitant makes payments to the annuity guarantor and building up the

value of his annuity account. This is usually followed by the annuitization phase, when

guaranteed payments are paid out to the annuitant for a specified period of time.

1.6.11 Programmed withdrawal :

A programmed withdrawal is a method by which the employee collects his retirement

benefits in periodic sums spread throughout the length of an estimated life span.

1.6.12 Annuity :

An annuity is an income purchased from an approved life insurance company which provides

monthly or quarterly income to the retiree during his/her lifetime

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References

Oladayo Oduwole (2015) : Can Nigerian RSA’s Beat Inflation? , Journal of Economics and

Sustainable Development

Pablo Antolin (2009) : Private Pensions and the Financial Crisis: How to Ensure Adequate

Retirement Income from DC Pension Plans , financial market trends © OECD

Pablo Antolin and Stéphanie Payet (2011) : Assessing the Labour, Financial and

Demographic Risks to Retirement Income from Defined-Contribution Pensions

Risks of Retirement Key Findings and Issues (2004) , society of actuaries

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CHAPTER 2

LITERATURE REVIEW

2.1 Preamble

This chapter discourses concepts and theories relating to retirement benefits and inflation, the

effects of inflation on both present and future pension agreements and also a time diagram

representation of the various ways in which benefits can be accumulated and also withdrawn.

2.2 Theoretical framework

Benefit formulas for employer pensions vary considerably across the economy. In the private

sector, most persons covered by an employer pension are in non-contributory defined benefit

plans. Defined benefit plans can be divided into those providing benefit amounts that do not

depend upon past earnings and plans where the benefit is determined in part by past earnings.'

The nonearning-based plans provide a fixed benefit to all qualified workers or a fixed benefit

per year of service. The increase in monthly benefits from one additional year of work,

holding constant the benefit formula, is easily seen to be zero in the first case and the fixed

benefit amount in the second type of plan. Changes in the level of benefits in response to real

wage growth or inflation will be determined by revisions in the benefit formulas through the

collective bargaining process or decisions by management. Thus, an examination of the

response of these plans to inflation and continued employment, holding the benefit formula

constant, would not be very informative. The development of a bargaining model to

determine changes in the benefit formula is beyond the scope of this paper. An analysis of

earnings-based plans will be more productive and may provide some guidance as to formula

changes in the flat benefit plans. Consequently the models in this paper concentrate solely on

defined benefit plans using earnings formulas. These plans cover about 44 percent of the

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workers covered by pension plans . In an earnings-based defined benefit plan, the employer

promises to pay a benefit to each worker who achieves sufficient years of service and reaches

the age of eligibility for benefits. Typically, the employee has some choice concerning the

age of retirement and the annual pension benefit will depend on this decision.

2.2.1 Benefit Formula.

Despite the variability of pension characteristics in earnings-formula plans, several general

relationships can be stated. Benefits in these plans are usually determined in the following

manner:

BR = ∑ 𝑾𝑡𝑹−𝟏𝒕=𝑹−𝑵

N . XR . Y

Where

BR = benefit if worker retires at age R,

Wt = wage in year t, prior to retirement,

N = number of years included in the salary history,

XR = percentage of average earnings per year of service in effect in year R, and

Y = years of credited service.

In a noninflationary environment, the expected present value of pension benefits starting at

R (PVBR) is defined to be

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The expected present value of lifetime income at time R assuming that the individual works

at age R and then retires at age R + 1 (PVWR) is

where WR is earnings for working in year R. The gain in the expected present value of

income from working in year R is

The first term is the value of earnings at age R and the second term is the change in the

expected present value of the benefit stream (PVBR).

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2.2.2 How Inflation Affects Individual's retirement Benefits

There are several ways in which the real value of such a worker's benefits are reduced by

unexpected changes in the inflation and interest rates:

1. Benefits are generally not indexed for inflation after retirement. Thus an increase in the

inflation rate would reduce the worker's real benefits in the years after retirement, below what

was expected.

2. If benefits are integrated with social security and social security benefits are tied to

inflation, an increase in the price level can mean a decline in private pension benefits

received.

3. Often benefits are related to an average of the last several years' salary rates of the

employee. Increases in the inflation rate matched by equal increases in salary will reduce the

ratio of benefits (based on an average salary) to final pay, below what was expected. For

example, if benefits are based on an average of the last five years' pay, this base will likely be

close to the actual final salary in a period of no inflation, where it may be significantly below

final salary in a period of high inflation.

Such effects are not trivial—Winklevoss (1977) has estimated that a five percentage point

increase in both salary growth rates and interest rates would reduce the present value of the

benefits of a typical worker by about 13%. However, these "mechanical" effects (derived

from assuming that the worker's future real salary is unaffected by the inflation rate) represent

only a small part of the effect of inflation on the value of workers' benefits. The most

important factor is that the benefits a worker has accumulated at any point in time represent a

fixed nominal sum. That is, if a worker left the firm at any particular moment, he would have

coming to him some fixed nominal pension benefits. The present value of those nominal

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benefits can be discounted at the riskless nominal interest rate, assuming that the pension plan

is sufficiently well funded so that there is no need to discount benefits any further. An

increase in long-term interest rates will thus decrease the value of this nominal claim. That is,

the worker accumulates nominal pension benefits each year. As the worker continues on the

payroll, he accumulates more nominal benefits. However, unexpected changes in the inflation

rate change the value of previously accumulated pension rights. There is no reason to believe

that firms will gratuitously "make up" this loss to employees. Even if benefits are fully

indexed for inflation after the employee reaches

the normal retirement age, even if there is no plan integration with social security, and even if

benefits are based strictly on the worker's final salary, the employee is not hedged against

inflation unless his benefits are also indexed for inflation that occurs while he is working.

2.3 Conceptual framework

According to Buckley (1974) retirement is an inevitable stage of ageing where the individual

gradually disengages from the main stream of active work, social work and is eventually

replaced with younger ones. Also Cole (1997) see retirement as the time an employee reaches

the end of his working life. Shea (1991) and Maisamari (2005) remarks that retirement is an

aged long practice in both the private and public service. Many people especially those who

never thought of retirement as a necessity often looked dejected, frustrated and depressed

when suddenly they found themselves retired. The idea of retirement is of a recent origin,

being introduced in the 19th and 20th centuries. The standard retirement age varies from

country to countries but it is generally between 55 and 70 years. The restriction in the labour

working age is to prevent an ageing labour force. Thus retirement is the act of an employees

official disengagement from a regular/permanent career job especially because the employee

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has reached a particular age. This will prevent an ageing labour force by allowing entrants of

young- able-bodied labour for increasing efficiecy. In Nigeria, the statutory retirement age is

dependent on the sector. For instance, it is sixty- five (65) years or thirty five (35) years of

active working service for staff of tertiary institutions other than professors. Those on the

professorial cadre retire at the age of 70 in respective of years of service. In the same vein, the

non-professorial staffs of tertiary institution retire at 65 irrespective of years of service. It is to

be noted too that judges at the Court of Appeal and Supreme Court levels retire at 70 while

those at the High Court level retire at 65. However, it’s 60 years of age in other public service

and private sector or 35 years of unbroken active service which ever come first (FRN,2004).

However, the 35 years of active service is not applicable to workers in the private sector.

According to Oniye (2004), whichever way retirement comes, it tends to emphasise

separation from job with concern for the future. Retirement is indeed a period of withdrawal

from active job of one’s means of livelihood. Retirement is a fluid concept because it

connotes different things and is fraught with different experiences for different people. We

observe over time that retirement life is not a homogenous experience for everyone . While

some individuals view it positively and anticipate it with nostalgia, others dread its

eventuality with great anxiety.

2.3.1 Retirement saving account

The Retirement Savings Account was initiated by the Federal Government under the Pensions

Reform Act 2004 and is used to set aside money towards an individual’s retirement.

The new pension Reform Act 2014 requires the employer and employee to contribute a

minimum total of 18% of the employee’s monthly emoluments (basic salary, housing and

transport) to a Retirement Savings Account (RSA) which will be managed by a private sector

Pension Fund Administrator (PFA).

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Additional Voluntary Contribution is another means by which participants can grow their

funds.

Access to the RSA will only be allowed upon retirement. If an employee retires at the age of

50 years or more he/she can have immediate access to the RSA. Similarly, if an employee

retires before the age of 50 years due to mental or physical incapacity, he or she can have

immediate access to his/her RSA. Whereas an employee who retires under the age of 50

years in accordance with the terms and conditions of employment will not access the RSA

until after six months of such retirement if he/she does not secure another employment.

However, There is no qualifying period for pension. If an employee works for an employer

for one month, his pension contribution will be paid by the employer into the employee’s

Retirement Savings Account (RSA) for that month. If the employee moves on to work for

another employer for another 1 year, his pension contribution will be paid by the second

employer for that period of 1 year and it goes on and on like that.

Upon retirement, an employee can draw a lump sum (by whatever name called) from the

balance standing to the credit of his/her RSA provided the balance after the withdrawal could

provide an annuity or fund monthly payments that would not be less than 50% of his monthly

pay as at the date of his retirement. However, an employer may choose to pay any other

severance benefits (by whatever name called) over and above the retirement benefits payable

to the employee subject to the terms and conditions of his employment.

If at the commencement of the Pension Reform Act 2004, the employee is entitled to gratuity

(if he were to retire on that date), the gratuity shall be computed and included in the actuarial

valuation as part of the accrued pension rights of such employee. Also, withdrawals from the

RSA can only be made upon retirement. However, where an employee makes additional or

voluntary lump sum contributions into the RSA, he can withdraw such money before

retirement or attainment of the age of 50 years.

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The balance in the RSA will be used to procure an annuity that provides regular income to the

contributor or fund a programmed withdrawal

2.3.2 Forms of Retirement

Retirement can be of different forms. In Nigeria, three major forms of retirement are

identified in the literature (Omoresemi,1987;Denga,1996; Nwajagu,2007; Okechukwu and

Ugwu ,2011). They are voluntary retirement, compulsory retirement and mandatory

retirement.

Voluntary or self retirement -occurs when the individual decides to quit active service for

personal reason(s) irrespective of age, experience, lenght of service or retirement policies.

This type of retirement depends more on the employee than the employer.

Compulsory or forced retirement is a situation in which the individual is forced or

compelled to retire against the individual’s expectation and when he is ill-prepared for it. It is

usually viewed negatively in that it is unplanned . Okechukwu and Ugwu (2011) identified

reasons for compulsory retirement to include inefficiency, old age, ill-health, indiscipline.

This retirement is in the interest of the organisation.

Mandatory or statutory retirement is the normal (or expected form) in the sense that the

person involved has reached the statutory age of retirement as specified in the condition of

service of the establishment. For instance, in Nigeria the age is specified for other civil

servants while judges and lecturers retire at 65 years or when an individual has put in 35 years

of service. In Nigeria, the current retirement is guided by the Federal Government Public

Service Rule (2008) which state clearly that:

(i). The compulsory retirement age for all grades in the civil service shall be 60 years or 35

years of pensionable service whichever is earlier.

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(ii). No officer shall be allowed to remain in service after attaining the retirement age of 60

years or 35 years of pensionable service which ever is earlier.

(iii). The provision of (i) and (ii) of the rule is without prejudice to the prevailing

requirements for judicial officers and academic staff of tertiary institutions of learning who

retireat 70 and 65 years respectively. It should be noted that retirement period is another

period of a new learning zone. Public servants should see retirement not as an end of ones

world rather the begining of a new (another) phase of life. Many public servants look

forward to retirement but not all get there. Therefore Public servants retiring on ground of age

should be celebrated and treated as war veterans by the society and government

2.3.3 Highlights of the contributory pension scheme in nigeria

As is typical worldwide, the Pay As You Go Defined Benefit Scheme that is currently

operated in Nigeria is burdened with a lot of problems and has increasingly become

unsustainable. Against the backdrop of a huge deficit, arbitral increases in salaries and

pensions as well as poor administrative structures, the need for pension reform became

glaring.

2.3.4 Elements of the new contributory pension scheme

The key objectives of the new scheme are to:

i. Ensure that every person who has worked in either the public or private sector receives his

retirement benefits as and when due;

ii. Assist improvident individuals by ensuring that they save to cater for their livelihood during

old age;

iii. Establish a uniform set of rules and regulations for the administration and payment of

retirement benefits in both the public and private sectors; and

iv. Stem the growth of outstanding pension liabilities.

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The new pension scheme is contributory, fully funded, based on individual accounts that are

privately managed by Pension Fund Administrators with the pension funds assets held by

Pension Fund Custodians. There will be strict regulation of the process.

Contributory System

Under this system, the employees contribute a minimum of 7.5% of their Basic Salary,

Housing and Transport Allowances and 2.5% for the Military. Employers shall contribute

7.5% in the case of the Public Sector and 12.5% in the case of the Military. Employers and

employees in the private sector will contribute a minimum of 7.5% each. An Employer may

elect to contribute on behalf of the employees such that the total contribution shall not be less

than 15% of the Basic Salary, Housing and Transport allowances of the employees.

An Employer is obliged to deduct and remit contributions to a Custodian within 7 days from

the day the employee is paid his Salary while the Custodian shall notify the PFA within 24

hours of the

receipt of Contribution. Contribution and retirement benefits are tax exempt.

Fully Funded

The contributions are deducted immediately from the salary of the employee and transferred

to the relevant retirement savings account. By so doing, the pension funds exist from the

onset and payments will be made when due.

Individual Accounts

The employee opens an account to be known as a ‘Retirement Savings Account’ in his name

with a Pension Fund Administrator of his choice. This individual account belongs to the

employee and will remain with him through life. He may change employers or pension fund

administrators but the account remains the same. The employee may only withdraw from this

account at the age of 50 or upon retirement thereafter. This withdrawal may take the form of:

29

• A programmed monthly or quarterly withdrawal;

• A purchase of annuity for life through a licensed life insurance company with monthly or

quarterly payments;

• A lump sum from the balance standing to the credit of his retirement savings account:

provided that the amount remaining after the lump sum withdrawal shall be sufficient to

procure an annuity or fund programmed withdrawals that will produce an amount not less

than 50% of his monthly remuneration as at date of his retirement.

With any of the above options, there is an assurance that the pensioner has sufficient funds

available to him for his old age. Although many have contended that at the end of the

working period, they should be allowed to collect their savings in one lump sum, experience

has shown that very few individuals have the discipline to manage funds effectively over a

long period of time. The above was considered a better process than to allow the individual

withdraw his accumulated savings at once, spend it all and then have no income when he is

no longer in a position to work.

Life Insurance Policy

Every employer shall maintain life insurance Policy in favour of an employee for a minimum

of three times the annual total emolument of the employee.

Eligibility for the scheme

The law makes it mandatory for all workers in the Public Service of the Federation and the

Federal Capital Territory, and workers in the private sector where the total number of

employees is 5 or more to join the contributory scheme at commencement.

Exempt individuals

Existing pensioners and workers that have 3 years or less to retire are exempted from the

scheme. Also, exempted are the categories of persons under Section 291 of the Constitution

of the Federal Republic of Nigeria. However, they may join of their own volition

30

2.2.5 Privately Managed: Pension Fund Administrators and Pension Fund Custodians

The new scheme requires pension funds to be privately managed by Pension Fund

Administrators (PFAs) and Pension Fund Custodians (PACs).

Pension Fund Administrators (PFAs) have been duly licensed to open retirement savings

accounts for employees, invest and manage the pension funds in fixed income securities listed

and other instruments as the Commission may from time to time prescribe, maintain books of

accounts on all transactions relating to the pension funds managed by it, provide regular

information on investment strategy to the employees or beneficiaries and pay retirement

benefits to employees in accordance with the provisions of the Act.

Pension Fund Custodians are responsible for the warehousing of the pension fund assets. It is

envisaged that at no time will the PFAs hold the pension funds assets. The employer sends the

contributions directly to the Custodian, who notifies the PFA of the receipt of the contribution

and the PFA subsequently credits the retirement savings account of the employee. The

Custodian will execute transactions and undertake activities relating to the administration of

pension fund investments upon instructions by the PFA.

2.2.6 Provisions of various means of withdrawal according to the pension act of 2014

1. Section III (1a) states that after retirement a retiree can Withdraw a lump sum provided that the amount left in the retirement savings account can procure a

programmed fund Withdrawal or annuity for life in accordance With the extant guidelines by the commission

Accumulation phase Programmed Withdrawals/Annuity for life

[Si] [Lj]

c1 c2 c3 c4 c5 c6 cJ Si Si Si Si Si

. 30 . . . 40 . . . 50 . . . 59 60 61 62 63 64

Time after retirement

31

2. Section III(1b) states that a retiree can make programmed Withdrawals on the basis of an expected life span

Accumulation phase Programmed Withdrawal till death

[Sj]

c1 c2 c3 c4 c5 c6 cj w1 w1 w1 w1 . . .

30 . . . 40 . . . 50 59 60 61 62 63 . . .

3. Section III(1c) states that a retiree can purchase an annuity for life With monthly or quarterly from a life insurance company licensed by the national insurance commission

Accumulation period Annuity for life

[Sj] Annuitize

c1 c1 c1 c1 c1 c1 cj a1 a1 a1 a1 . . .

30 . . . 40 . . . 50 59 60 61 62 63 . . .

4. According to section III(2)Under voluntary retires, disengages or is disengaged from employment as provided by section 16 (2) and (5) the employee is entitled to not more than 25% of the amount credited to his retirement savings account but the approval of

the commission is required

Accumulation period Voluntary Withdrawal

c1 c1 c1 c1 c1 c1 c1 cj [Sj]

30 31 32 33 34 . . . 40 41 42

32

5. Section 3(8) states that when an employee dies, his entitlement under the life insurance policy maintained in section 4(5) of the act shall be paid from an

underwriter to the named beneficiary in line With section 57 of the insurance act

Accumulation period death

c1 c1 c1 c1 cj [Sj]

30 31 32 33 34.... 40

Where

cJ is amount contributed monthly

si is a monthly programmed fund Withdrawal or annuity for life

w1 is a monthly programmed fund Withdrawal

a1 is monthly annuity for life payment

Lj is the lump sum Withdrawal

Sj total amount contributed till death

60 is age of retirement

2.2.7 Pension Benefits In Retirement

Previously, low life expectancy and the absence of pension arrangements meant that most

workers continued to work until death (Wikipedia,2011). In modern times, with improvement

in life expectancy rate and available labour supply, most countries have envolved systems

that now define standard retirement age and provide pensions on retirement. According to

Toye(2006), pension is simply the amount set aside either by an employer or an employee or

both to ensure that at retirement there is something for employees to fall back on as a

guaranteed income for them or for their dependants. Pension and gratuities are schemes

which provide for the finances for the upkeep of the retired staff throughout the rest of their

lives after work. In Nigeria payment of pension benefits to workers in the public service is the

33

sole responsibility of the government. So, that at old age, and retiring worker will not be

stranded financially. This practice assists the retirees to readjust properly to the society after

leaving employment. Table 1 in the appendix shows the fomular for pension and gratuity

calculations in Nigeria based on percentage of final salary in respect of retirement since 1992.

This formula is currently in use even today. Balogun (2006) affirms that Nigeria had her first

Pension Scheme in 1951. The colonial British administration established this by the

instrument they called Pension Ordinance. The introduction of this Pension Scheme had a

retroactive effective from 1st January, 1946 and applied only to United Kingdom officials

posted to Nigeria. By implication, this pension scheme was not automatic to Nigerians. Since

that time, Nigeria had had about eight(8) registered Pension Schemes that is characterised by

outright corruption and embezzlement. The pensioners had to cry out loud in streets and mass

media for a positive change (Obi,2002). Thereafter ,The Pension Reform Act 2004 was

enacted on 25th June,2004 and became effective on 1st July,2004 to redress the corruptible

practices in the scheme and to assist the pensioners cope with the changing economic and

political process in the country. It may interest you to know that the introduction of the

Contributory Pension Scheme(CPS) in Nigeria in 2004 has its origin from Chile and its Latin

American neighbours that personalized pension to the contributor and managed by licensed

private sector entities. So far, Nigeria is the first African country to introduce a variant of the

Chilean system with flavours of African peculiarities(Musibau,2012).Under the new

contributory system, the employees contribut a minimum of 8% of their basic salary, housing

and transport allowances . Employers shall contribute 10%. One of the opportunities of the

CPS is that participants are allowed to open individual Retirement Saving Account(RSA)

where contributions

are accumulated till retirement. The scheme also permits members to make voluntary

contributions as additional percentage of their salaries into the individual capitalized account.

34

The mandatory requirement that Pension Fund Administrators(PFAs) provide

regular/periodic statement of account to RSAs holders ensures close monitoring of accounts

which could also guarantee quick report of errors and prompt correction of such errors.

Nigeria decided to adopt the Chilean version of CPS in order to cushion the heavy financial

on the goverment in payment of previous retirees pension benefits. In order to facilitate this

restucturing, the prevailing Contributory Pension Reform Act 2004 has a central regulatory

body, called Pension Commission (PENCOM) to oversee all pension matters nation wide.

2.4 Empirical review

Monte carlo methods are a broad class of computational algorithms that rely on repeated

random sampling to obtain numerical results. They are often used in physical and

mathematical problems but can also be applied in financial situations.

Although the naming of this type of calculation after a gambling mecca may seem a bit ironic,

it has come to be used in the financial arena to signify a planning technique used to calculate

probability of certain scenarios that are based upon a set group of assumptions and standard

deviation.

This method has often been used in investment and retirement planning to project the

likelihood of achieving ones financial or retirement goals and whether or not a retiree will

have enough income to live on for life given a wide range of possible outcomes in the

markets. While there is no absolute parameter for this type of projection, the underlying

assumptions for these calculations typically include such factors such as interest rates, the

clients age and projected time to retirement, the amount of the investment portfolio that is

spent or withdrawn each year and the port folio allocation. The computer model then runs

hundreds or thousands of possible outcomes using historical financial data. The results of this

35

analysis usually come in form of a bell curve, where the middle part of the curve delineates

the scenarios that are statistically and historically the most likely to happen while the ends, or

tails measure the diminishing likelihood of the more extreme scenarios that could also occur

Despite its apparently thorough mathematical breakdown of possible future outcome, recent

market turbulence has served to expose a major weakness that seems to afflict this method of

financial projections. While its supporters are quick to point that monte carlo simulations

generally provide much more realistic scenarios than simple projections that assume a given

rate of return on capital, critics contend that monte carlo analysis cannot accurately factor

infrequent but radical events, such as market crashes, into its probability analysis. Many

investors and professionals who used this methodology were not shown a real probability of

market performance such as we have had over the past few years.

There are a few basic adjustments that experts suggest can really help remedy the

shortcomings of the Monte Carlo projections. The first is to simply add on a flat increase to

the possibility of financial failure that the numbers show, such as 10% or 20%. Another is to

plot out projections that use a percentage of assets each year instead of a set dollar amount,

which will greatly reduce the possibility of running out of principal

The process of determining an appropriate withdrawal rate continues to evolve. As baby

boomers retire and individual savings increasingly represent a larger share of retirement

income, there has been more research on how best to calculate withdrawal rates.

William Bengen conducted the seminal study1 on what is sustainable for taxdeferred

retirement accounts. He looked at the annual performance of hypothetical portfolios that are

continually rebalanced to achieve a 50-50 mix of large-cap (S&P 500 index) common stocks

and intermediate-term Treasury notes. The study took into account the potential impact of

36

major financial events such as the early Depression years, the stock decline of 1937-41 and

the 1973-74 recession.

The study found that a withdrawal rate of slightly more than 4% would have provided

inflation-adjusted income for at least 30 years. More recently, Bengen used similar

assumptions to show that a higher initial withdrawal rate – closer to 5% – might be possible

during the early, active years of retirement if withdrawals in later years grow more slowly

than inflation.

Other studies have shown that broader portfolio diversification and rebalancing strategies can

also have a significant impact on initial withdrawal rates. In an October 2004 study2,

Jonathan Guyton found that adding asset classes, such as international stocks and real estate,

helped increase portfolio longevity (although these asset classes have special risks).

Another strategy Guyton used in modelling initial withdrawal rates was to freeze the

withdrawal amount during years of poor portfolio performance. By applying so-called

decision rules that take into account portfolio performance from year to year, Guyton found it

was possible to have “safe” initial withdrawal rates above 5%.

According to Raymond (2006) an alternative approach is the performance-based withdrawal

rate. With this approach, your client establishes an initial withdrawal rate, and then varies that

percentage from year to year, depending on the portfolio’s performance and adjusting for

inflation.

Each year’s withdrawal percentage is based on the previous year’s spending and portfolio

performance. In years of poor performance, a portfolio’s return might be lower than your

client’s target withdrawal rate. In that case, your client would reduce the amount he or she

takes out of the portfolio the following year.

37

Conversely, in a year when the portfolio exceeds your client’s expectations and performance

is above average, he or she may withdraw a larger amount. The key here is the ability for the

client to easily adjust their spending. If he or she withdraws higher amounts during good

years, they must be certain they can reduce spending appropriately during years of lower

returns; otherwise, there is a -greater risk of exhausting the portfolio too quickly.

Having other sources of reliable, fixed income could make it easier to cushion potential

income fluctuations from a performance-based withdrawal rate and to handle emergencies

that require your client to spend more than expected.

Charles I. Nkeki and Chukwuma R. Nwozo (2013) adopted a mean-variance approach

(MVA) to portfolio selection problem with fixed salary or income of a PPM and inflation

protection strategy in accumulation phase of a DC pension scheme. Their result showed that

that inflation-linked bond can be used to hedge inflation risk that is associated with the PPM’s

wealth. They also found out that optimal portfolio is efficient in the mean-variance approach.

Oladayo Oduwole (2015) attempted to replicate the published NAV results using four

Nigerian financial instruments to ascertain if passive alternatives to active management by the

PFA’s at lower cost and transaction fees can be created. He also suggested that the pension

fund industry needs to review its recording of NAV performance and adjust its portfolio

weights and constituents to deliver above inflation returns to RSA unit holders. The new yard

stick should be positive inflation adjusted returns.

2.5 Nigeria business environment

Nigeria’s pension legal framework has undergone multiple changes since the first legislative

act on pension in 1951 called the Pension Ordinance, which had retroactive effect from 01

January 1946. The last major change was in 2004 with the enactment of the Pensions Reform

38

Act (PRA 2004), which introduced the Contributory Pension Scheme (CPS) and made it

mandatory for employers and employees in both the public and private sectors to contribute

towards the retirement benefits of employees. The current pension regime has been designed

to maximise the potential of the Contributory Pension Scheme, making provision for the

establishment of the National Pension Commission and establishing guidelines for the

activities of key players within the Pension Industry. However, in order to further secure

pension fund assets and drive industry growth, a review was made and passed into law in July

2014.

39

References

Jeremy I. Bulow ( 1982) : Inflation: Causes and Effects, University of Chicago Press

Risks of Retirement Key Findings and Issues (2004), society of actuaries

Andrew A. Samwick and Jonathan skinner (2001): How Will Defined Contribution Pension

Plans Affect Retirement Income? , Dartmouth College and NBER

Raymond James, Methods of retirement income analysis, Raymond James Financial Services,

Inc

Maji Ali (2014): managing post-retirement conditions in Nigeria, Journal of Good

Governance and Sustainable Development in Africa (JGGSDA), Vol. 2, No 2

Ettah B. Essien, (2014): The New Contributory Pension Scheme in Nigeria: Gleaning From

Past Pension Schemes, IOSR Journal of Economics and Finance

Odia, j.o (2012) : pensions reform in Nigeria: a comparison between the old and new scheme

, afro asian journal of social sciences volume 3, no. 3.1 quarter i



Robert L. Clark and Ann Archibald McDermed (2012) : Inflation, Pension Benefits, and

Retirement , The Journal of Risk and Insurance, Vol. 49, No. 1 (Mar., 1982), pp. 19-38

40

CHAPTER 3

RESEARCH METHODOLOGY

3.1 Preamble

Research methodology explains the procedure used by a researcher in assembling the raw

data for processing. It provides an organizational principle by which knowledge can be

codified and analyzed. Its objectives are to provide a procedure and parameters employed in

the conduct of a scientific research while it is aimed at explaining the method of data

collection, data analysis and interpretation (Colonel, 2007).

The focus therefore in this chapter is on a concise description of the methodology design

covered in conducting the research. The areas include the sources of data, description of data,

model specification and analysis of technique employed

3.2 Source of data

Data can be gotten from two main sources namely primary data and secondary data.

Secondary data was used in conducting this research. The data for this research is the salary

scale of the academic and non academic staffs of the University of Lagos.

3.3 Description of data

This data contains the basic salary, rent, peculiar allowances and the total emoluments of the

university of Lagos staff salary scale at different levels/categories

3.4 Data analysis technique

The techniques used to analyse this data are the basic benefit formula, and the expected present value

of retirement benefit formula incorporating the general model of inflationary effects into it.

41

Despite the variability of pension characteristics in earnings-formula plans, several general

relationships can be stated.As stated in chapter 2, benefits in these plans are usually determined in the

following manner:

𝐵𝑅 = (∑ 𝑊𝑡𝑅−1

𝑡=𝑅−𝑁

𝑁) ∗ 𝑋𝑟 ∗ 𝑌

Where; BR = benefit if worker retires at age R,

Wt = wage in year t, prior to retirement,

N = number of years included in the salary history,

XR = percentage of average earnings per year of service in effect in year R, and

Y = years of credited service.

3.4.1 Growth of pension benefits : inflation

Inflation will alter the real values of wages and pension benefits only to the extent that the

nominal values do not rise to reflect fully the increase in prices. Price increases also raise the

rate by which future nominal income is discounted. Thus inflation may reduce the real

income of older workers and alter their incentives to remain on the job depending on how

wages and pensions benefits respond to inflationary fluctuation

3.4.2 General model of inflationary effects

To incorporate inflation and real wage growth directly in the model, rewrite equations 4

stated in chapter 2 explicitly including the wage and benefit responses to these terms

42

𝐏𝐕𝐁∗ = ∑ (𝐵𝑅(1 + Kb. i)j

(〖1 + 𝑟)〗𝑗(〖1 + 𝑖)〗𝑗)

∞

𝑗=1

( 𝑝𝑗 𝑟)

Where ; PVB* = expected present value of income discounted to age R if person

works in year R,

BR = retirement benefit at age R

j = number of years survived after retirement

i = rate of inflation, assumed to be constant over time

r = real rate of interest

Kb = ratio of benefit adjustment to the rate of inflation.

Benefits rise by kb times the rate of inflation each year after retirement, meanwhile it is to be

noted that Kb is constant after retirement i.e Kb = 0

This technique of analysis is aimed at providing answers to the following research questions ;

i. How extent does inflation affect the real value of retirement benefits?

ii. What effect does the age of retirement have on the retirement benefits?

43

CHAPTER 4

DATA PRESENTATION AND ANALYSIS

4.1 Preamble

This chapter aims to present and analyse the data used in explaining the impact of inflation on

the retirement benefits of individuals. The data has been presented to cover the initial salary

of the employee The data comprises of the total emoluments which differ according to their

levels of entry as well as the rate of employee contribution and also employer contribution to

the scheme.

4.2 Presentation of data

The data below is the salary scale of university of Lagos academic and non-academic staffs

and also their levels .

See appendix 1.0

4.3 Analysis of data

The data presented were analyzed using Microsoft excel 2007 based on the following

assumptions.

Entry age is 25

Enters as a graduate assistant

j = 15 years XR = .01 r = 0.0745

Y = varies with age of retirement

Kb = 0

am92 table Promotion is every three years Geometric mean of interest on bond yield is 14.7% Al l amounts are in naira

Salary increases at 4% for teaching staffs and 3% for non teaching

The summary is as presented as follows;

44

4.3.1 Tables for academic staffs

Table 4.1 : when an individual joins at age 25



ENTRY AGE : 25 ENTRY AGE : 26

RETIRES

BENEFIT ACCORDING TO

PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT

AGE BENEFIT ACCORDING TO PENSION ACT OF 20147% 8% 9% 10% 11% 12% 13%

A50 1,324,282.40 964,257.24 888,110.67 853,351.77 793,010.98 791,500.06 763,926.10 738,310.07

A51 1,396,701.96 1,043,065.18 962,119.89 924,464.42 859,095.23 857,458.40 827,586.61 799,835.90

A52 1,469,121.51 1,126,510.42 1,080,653.04 1,038,358.43 964,935.78 963,097.26 929,545.28 898,376.13

A53 1,541,541.07 1,214,962.30 1,165,505.01 1,119,888.81 1,040,701.10 1,038,718.25 1,002,531.79 968,914.81

A54 1,613,960.63 1,308,688.01 1,255,414.67 1,206,280.25 1,120,935.77 1,118,847.92 1,079,869.97 1,043,659.65

A55 1,686,380.18 1,407,967.78 1,347,916.56 1,297,791.12 1,206,023.91 1,203,726.07 1,152,712.13 1,123,268.69

A56 1,758,799.74 1,513,096.01 1,451,501.75 1,394,692.89 1,296,073.68 1,293,604.27 1,248,538.20 1,206,672.10

A57 1,831,219.29 1,624,381.78 1,558,257.40 1,497,270.26 1,391,397.81 1,388,746.76 1,340,366.19 1,295,420.89

A58 1,903,638.85 1,742,149.51 1,671,231.04 1,605,822.38 1,492,274.16 1,489,430.94 1,437,542.71 1,389,338.91

A59 1,976,058.40 1,866,739.58 1,790,749.40 1,720,663.00 1,598,994.38 1,595,947.80 1,540,348.81 1,488,697.68

A60 2,048,477.96 1,998,509.44 1,917,155.20 1,842,121.58 1,711,864.55 1,708,602.94 1,634,355.39 1,593,782.24

A61 2,120,897.51 2,137,834.05 2,050,808.33 1,970,543.75 1,831,205.95 1,827,716.96 1,748,293.30 1,704,891.63

A62 2,193,317.07 2,285,107.09 2,192,086.26 2,106,292.35 1,957,355.73 1,953,626.34 1,868,458.91 1,822,339.72

A63 2,265,736.63 2,440,741.42 2,341,385.07 2,249,747.91 2,090,667.50 2,086,684.16 1,996,007.06 1,946,455.82

A64 2,338,156.18 2,605,170.32 2,499,120.48 2,401,309.90 2,231,512.48 2,227,260.78 2,130,474.90 2,077,585.50

A65 2,410,575.74 2,778,848.30 2,665,728.51 2,561,397.21 2,380,279.99 2,375,744.83 2,272,506.56 2,216,091.22


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 1,251,862.85 890,189.90 853,952.56 820,530.55 762,510.56 761,057.75 734,544.33 709,913.52

A51 1,324,282.40 964,372.40 888,110.67 853,351.77 793,010.98 791,500.06 763,926.10 738,310.07

A52 1,396,701.96 1,043,065.18 962,119.89 924,464.42 859,095.23 857,458.40 827,586.61 799,835.90

A53 1,469,121.51 1,126,510.42 1,080,653.04 1,038,358.43 964,935.78 963,097.26 929,545.28 898,376.13

A54 1,541,541.07 1,214,962.30 1,165,505.01 1,119,888.81 1,040,701.10 1,038,718.25 1,002,531.79 968,914.81

A55 1,613,960.63 1,308,688.01 1,255,414.67 1,206,280.25 1,120,935.77 1,118,847.92 1,079,869.97 1,043,659.65

A56 1,686,380.18 1,407,967.78 1,347,916.56 1,297,791.12 1,206,023.91 1,203,726.07 1,152,712.13 1,123,268.69

A57 1,758,799.74 1,513,096.01 1,451,501.75 1,394,692.89 1,296,073.68 1,293,604.27 1,248,538.20 1,206,672.10

A58 1,831,219.29 1,624,381.78 1,558,257.40 1,497,270.26 1,391,397.81 1,388,746.76 1,340,366.19 1,295,420.89

A59 1,903,638.85 1,742,149.51 1,671,231.04 1,605,822.38 1,492,274.16 1,489,430.94 1,437,542.71 1,389,338.91

A60 1,976,058.40 1,866,739.58 1,790,749.40 1,720,663.00 1,598,994.38 1,595,947.80 1,540,348.81 1,488,697.68

A61 2,048,477.96 1,998,509.44 1,917,155.20 1,842,121.58 1,711,864.55 1,708,602.94 1,634,355.39 1,593,782.24

A62 2,120,897.51 2,137,834.05 2,050,808.33 1,970,543.75 1,831,205.95 1,827,716.96 1,748,293.30 1,704,891.63

A63 2,193,317.07 2,285,107.09 2,192,086.26 2,106,292.35 1,957,355.73 1,953,626.34 1,868,458.91 1,822,339.72

A64 2,265,736.63 2,440,741.42 2,341,385.07 2,249,747.91 2,090,667.50 2,086,684.16 1,996,007.06 1,946,455.82

A65 2,338,156.18 2,605,170.32 2,499,120.48 2,401,309.90 2,231,512.48 2,227,260.78 2,130,474.90 2,077,585.50


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 1,179,443.29 820,287.17 786,895.39 756,097.86 702,633.93 701,295.20 676,863.76 654,167.11

A51 1,251,862.85 890,189.90 853,952.56 820,530.55 762,510.56 761,057.75 734,544.33 709,913.52

A52 1,324,282.40 964,372.40 888,110.67 853,351.77 793,010.98 791,500.06 763,926.10 738,310.07

A53 1,396,701.96 1,043,065.18 962,119.89 924,464.42 859,095.23 857,458.40 827,586.61 799,835.90

A54 1,469,121.51 1,126,510.42 1,080,653.04 1,038,358.43 964,935.78 963,097.26 929,545.28 898,376.13

A55 1,541,541.07 1,214,962.30 1,165,505.01 1,119,888.81 1,040,701.10 1,038,718.25 1,002,531.79 968,914.81

A56 1,613,960.63 1,308,688.01 1,255,414.67 1,206,280.25 1,120,935.77 1,118,847.92 1,079,869.97 1,043,659.65

A57 1,686,380.18 1,407,967.78 1,347,916.56 1,297,791.12 1,206,023.91 1,203,726.07 1,152,712.13 1,123,268.69

A58 1,758,799.74 1,513,096.01 1,451,501.75 1,394,692.89 1,296,073.68 1,293,604.27 1,248,538.20 1,206,672.10

A59 1,831,219.29 1,624,381.78 1,558,257.40 1,497,270.26 1,391,397.81 1,388,746.76 1,340,366.19 1,295,420.89

A60 1,903,638.85 1,742,149.51 1,671,231.04 1,605,822.38 1,492,274.16 1,489,430.94 1,437,542.71 1,389,338.91

A61 1,976,058.40 1,866,739.58 1,790,749.40 1,720,663.00 1,598,994.38 1,595,947.80 1,540,348.81 1,488,697.68

A62 2,048,477.96 1,998,509.44 1,917,155.20 1,842,121.58 1,711,864.55 1,708,602.94 1,634,355.39 1,593,782.24

A63 2,120,897.51 2,137,834.05 2,050,808.33 1,970,543.75 1,831,205.95 1,827,716.96 1,748,293.30 1,704,891.63

A64 2,193,317.07 2,285,107.09 2,192,086.26 2,106,292.35 1,957,355.73 1,953,626.34 1,868,458.91 1,822,339.72

A65 2,265,736.63 2,440,741.42 2,341,385.07 2,249,747.91 2,090,667.50 2,086,684.16 1,996,007.06 1,946,455.82

45





RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 1,107,023.74 754,444.72 723,733.22 695,407.73 646,235.22 645,003.95 622,533.56 601,658.71

A51 1,179,443.29 820,287.17 786,895.39 756,097.86 702,633.93 701,295.20 676,863.76 654,167.11

A52 1,251,862.85 890,189.90 853,952.56 820,530.55 762,510.56 761,057.75 734,544.33 709,913.52

A53 1,324,282.40 964,372.40 888,110.67 853,351.77 793,010.98 791,500.06 763,926.10 738,310.07

A54 1,396,701.96 1,043,065.18 962,119.89 924,464.42 859,095.23 857,458.40 827,586.61 799,835.90

A55 1,469,121.51 1,126,510.42 1,080,653.04 1,038,358.43 964,935.78 963,097.26 929,545.28 898,376.13

A56 1,541,541.07 1,214,962.30 1,165,505.01 1,119,888.81 1,040,701.10 1,038,718.25 1,002,531.79 968,914.81

A57 1,613,960.63 1,308,688.01 1,255,414.67 1,206,280.25 1,120,935.77 1,118,847.92 1,079,869.97 1,043,659.65

A58 1,686,380.18 1,407,967.78 1,347,916.56 1,297,791.12 1,206,023.91 1,203,726.07 1,152,712.13 1,123,268.69

A59 1,758,799.74 1,513,096.01 1,451,501.75 1,394,692.89 1,296,073.68 1,293,604.27 1,248,538.20 1,206,672.10

A60 1,831,219.29 1,624,381.78 1,558,257.40 1,497,270.26 1,391,397.81 1,388,746.76 1,340,366.19 1,295,420.89

A61 1,903,638.85 1,742,149.51 1,671,231.04 1,605,822.38 1,492,274.16 1,489,430.94 1,437,542.71 1,389,338.91

A62 1,976,058.40 1,866,739.58 1,790,749.40 1,720,663.00 1,598,994.38 1,595,947.80 1,540,348.81 1,488,697.68

A63 2,048,477.96 1,998,509.44 1,917,155.20 1,842,121.58 1,711,864.55 1,708,602.94 1,634,355.39 1,593,782.24

A64 2,120,897.51 2,137,834.05 2,050,808.33 1,970,543.75 1,831,205.95 1,827,716.96 1,748,293.30 1,704,891.63

A65 2,193,317.07 2,285,107.09 2,192,086.26 2,106,292.35 1,957,355.73 1,953,626.34 1,868,458.91 1,822,339.72


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 1,034,604.18 692,453.64 664,265.63 638,267.59 593,135.47 592,005.37 571,381.33 552,221.72

A51 1,107,023.74 754,444.72 723,733.22 695,407.73 646,235.22 645,003.95 622,533.56 601,658.71

A52 1,179,443.29 820,287.17 786,895.39 756,097.86 702,633.93 701,295.20 676,863.76 654,167.11

A53 1,251,862.85 890,189.90 853,952.56 820,530.55 762,510.56 761,057.75 734,544.33 709,913.52

A54 1,324,282.40 964,372.40 888,110.67 853,351.77 793,010.98 791,500.06 763,926.10 738,310.07

A55 1,396,701.96 1,043,065.18 962,119.89 924,464.42 859,095.23 857,458.40 827,586.61 799,835.90

A56 1,469,121.51 1,126,510.42 1,080,653.04 1,038,358.43 964,935.78 963,097.26 929,545.28 898,376.13

A57 1,541,541.07 1,214,962.30 1,165,505.01 1,119,888.81 1,040,701.10 1,038,718.25 1,002,531.79 968,914.81

A58 1,613,960.63 1,308,688.01 1,255,414.67 1,206,280.25 1,120,935.77 1,118,847.92 1,079,869.97 1,043,659.65

A59 1,686,380.18 1,407,967.78 1,347,916.56 1,297,791.12 1,206,023.91 1,203,726.07 1,152,712.13 1,123,268.69

A60 1,758,799.74 1,513,096.01 1,451,501.75 1,394,692.89 1,296,073.68 1,293,604.27 1,248,538.20 1,206,672.10

A61 1,831,219.29 1,624,381.78 1,558,257.40 1,497,270.26 1,391,397.81 1,388,746.76 1,340,366.19 1,295,420.89

A62 1,903,638.85 1,742,149.51 1,671,231.04 1,605,822.38 1,492,274.16 1,489,430.94 1,437,542.71 1,389,338.91

A63 1,976,058.40 1,866,739.58 1,790,749.40 1,720,663.00 1,598,994.38 1,595,947.80 1,540,348.81 1,488,697.68

A64 2,048,477.96 1,998,509.44 1,917,155.20 1,842,121.58 1,711,864.55 1,708,602.94 1,634,355.39 1,593,782.24

A65 2,120,897.51 2,137,834.05 2,050,808.33 1,970,543.75 1,831,205.95 1,827,716.96 1,748,293.30 1,704,891.63


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 962,184.63 634,115.05 608,301.86 584,494.13 543,164.35 542,129.46 523,242.98 505,697.55

A51 1,034,604.18 692,453.64 664,265.63 638,267.59 593,135.47 592,005.37 571,381.33 552,221.72

A52 1,107,023.74 754,444.72 723,733.22 695,407.73 646,235.22 645,003.95 622,533.56 601,658.71

A53 1,179,443.29 820,287.17 786,895.39 756,097.86 702,633.93 701,295.20 676,863.76 654,167.11

A54 1,251,862.85 890,189.90 853,952.56 820,530.55 762,510.56 761,057.75 734,544.33 709,913.52

A55 1,324,282.40 964,372.40 888,110.67 853,351.77 793,010.98 791,500.06 763,926.10 738,310.07

A56 1,396,701.96 1,043,065.18 962,119.89 924,464.42 859,095.23 857,458.40 827,586.61 799,835.90

A57 1,469,121.51 1,126,510.42 1,080,653.04 1,038,358.43 964,935.78 963,097.26 929,545.28 898,376.13

A58 1,541,541.07 1,214,962.30 1,165,505.01 1,119,888.81 1,040,701.10 1,038,718.25 1,002,531.79 968,914.81

A59 1,613,960.63 1,308,688.01 1,255,414.67 1,206,280.25 1,120,935.77 1,118,847.92 1,079,869.97 1,043,659.65

A60 1,686,380.18 1,407,967.78 1,347,916.56 1,297,791.12 1,206,023.91 1,203,726.07 1,152,712.13 1,123,268.69

A61 1,758,799.74 1,513,096.01 1,451,501.75 1,394,692.89 1,296,073.68 1,293,604.27 1,248,538.20 1,206,672.10

A62 1,831,219.29 1,624,381.78 1,558,257.40 1,497,270.26 1,391,397.81 1,388,746.76 1,340,366.19 1,295,420.89

A63 1,903,638.85 1,742,149.51 1,671,231.04 1,605,822.38 1,492,274.16 1,489,430.94 1,437,542.71 1,389,338.91

A64 1,976,058.40 1,866,739.58 1,790,749.40 1,720,663.00 1,598,994.38 1,595,947.80 1,540,348.81 1,488,697.68

A65 2,048,477.96 1,998,509.44 1,917,155.20 1,842,121.58 1,711,864.55 1,708,602.94 1,634,355.39 1,593,782.24

46





RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 891,684.82 579,239.71 555,660.35 533,912.90 496,159.75 495,214.41 477,962.33 461,935.26

A51 962,184.63 634,115.05 608,301.86 584,494.13 543,164.35 542,129.46 523,242.98 505,697.55

A52 1,034,604.18 692,453.64 664,265.63 638,267.59 593,135.47 592,005.37 571,381.33 552,221.72

A53 1,107,023.74 754,444.72 723,733.22 695,407.73 646,235.22 645,003.95 622,533.56 601,658.71

A54 1,179,443.29 820,287.17 786,895.39 756,097.86 702,633.93 701,295.20 676,863.76 654,167.11

A55 1,251,862.85 890,189.90 853,952.56 820,530.55 762,510.56 761,057.75 734,544.33 709,913.52

A56 1,324,282.40 964,372.40 888,110.67 853,351.77 793,010.98 791,500.06 763,926.10 738,310.07

A57 1,396,701.96 1,043,065.18 962,119.89 924,464.42 859,095.23 857,458.40 827,586.61 799,835.90

A58 1,469,121.51 1,126,510.42 1,080,653.04 1,038,358.43 964,935.78 963,097.26 929,545.28 898,376.13

A59 1,541,541.07 1,214,962.30 1,165,505.01 1,119,888.81 1,040,701.10 1,038,718.25 1,002,531.79 968,914.81

A60 1,613,960.63 1,308,688.01 1,255,414.67 1,206,280.25 1,120,935.77 1,118,847.92 1,079,869.97 1,043,659.65

A61 1,686,380.18 1,407,967.78 1,347,916.56 1,297,791.12 1,206,023.91 1,203,726.07 1,152,712.13 1,123,268.69

A62 1,758,799.74 1,513,096.01 1,451,501.75 1,394,692.89 1,296,073.68 1,293,604.27 1,248,538.20 1,206,672.10

A63 1,831,219.29 1,624,381.78 1,558,257.40 1,497,270.26 1,391,397.81 1,388,746.76 1,340,366.19 1,295,420.89

A64 1,903,638.85 1,742,149.51 1,671,231.04 1,605,822.38 1,492,274.16 1,489,430.94 1,437,542.71 1,389,338.91

A65 1,976,058.40 1,866,739.58 1,790,749.40 1,720,663.00 1,598,994.38 1,595,947.80 1,540,348.81 1,488,697.68


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 823,104.75 527,647.51 506,168.34 486,357.91 451,967.38 451,106.25 435,390.79 420,791.23

A51 891,684.82 579,239.71 555,660.35 533,912.90 496,159.75 495,214.41 477,962.33 461,935.26

A52 962,184.63 634,115.05 608,301.86 584,494.13 543,164.35 542,129.46 523,242.98 505,697.55

A53 1,034,604.18 692,453.64 664,265.63 638,267.59 593,135.47 592,005.37 571,381.33 552,221.72

A54 1,107,023.74 754,444.72 723,733.22 695,407.73 646,235.22 645,003.95 622,533.56 601,658.71

A55 1,179,443.29 820,287.17 786,895.39 756,097.86 702,633.93 701,295.20 676,863.76 654,167.11

A56 1,251,862.85 890,189.90 853,952.56 820,530.55 762,510.56 761,057.75 734,544.33 709,913.52

A57 1,324,282.40 964,372.40 888,110.67 853,351.77 793,010.98 791,500.06 763,926.10 738,310.07

A58 1,396,701.96 1,043,065.18 962,119.89 924,464.42 859,095.23 857,458.40 827,586.61 799,835.90

A59 1,469,121.51 1,126,510.42 1,080,653.04 1,038,358.43 964,935.78 963,097.26 929,545.28 898,376.13

A60 1,541,541.07 1,214,962.30 1,165,505.01 1,119,888.81 1,040,701.10 1,038,718.25 1,002,531.79 968,914.81

A61 1,613,960.63 1,308,688.01 1,255,414.67 1,206,280.25 1,120,935.77 1,118,847.92 1,079,869.97 1,043,659.65

A62 1,686,380.18 1,407,967.78 1,347,916.56 1,297,791.12 1,206,023.91 1,203,726.07 1,152,712.13 1,123,268.69

A63 1,758,799.74 1,513,096.01 1,451,501.75 1,394,692.89 1,296,073.68 1,293,604.27 1,248,538.20 1,206,672.10

A64 1,831,219.29 1,624,381.78 1,558,257.40 1,497,270.26 1,391,397.81 1,388,746.76 1,340,366.19 1,295,420.89

A65 1,903,638.85 1,742,149.51 1,671,231.04 1,605,822.38 1,492,274.16 1,489,430.94 1,437,542.71 1,389,338.91


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 756,444.45 479,167.08 459,661.42 441,671.18 410,440.46 409,658.45 395,386.93 382,128.79

A51 823,104.75 527,647.51 506,168.34 486,357.91 451,967.38 451,106.25 435,390.79 420,791.23

A52 891,684.82 579,239.71 555,660.35 533,912.90 496,159.75 495,214.41 477,962.33 461,935.26

A53 962,184.63 634,115.05 608,301.86 584,494.13 543,164.35 542,129.46 523,242.98 505,697.55

A54 1,034,604.18 692,453.64 664,265.63 638,267.59 593,135.47 592,005.37 571,381.33 552,221.72

A55 1,107,023.74 754,444.72 723,733.22 695,407.73 646,235.22 645,003.95 622,533.56 601,658.71

A56 1,179,443.29 820,287.17 786,895.39 756,097.86 702,633.93 701,295.20 676,863.76 654,167.11

A57 1,251,862.85 890,189.90 853,952.56 820,530.55 762,510.56 761,057.75 734,544.33 709,913.52

A58 1,324,282.40 964,372.40 888,110.67 853,351.77 793,010.98 791,500.06 763,926.10 738,310.07

A59 1,396,701.96 1,043,065.18 962,119.89 924,464.42 859,095.23 857,458.40 827,586.61 799,835.90

A60 1,469,121.51 1,126,510.42 1,080,653.04 1,038,358.43 964,935.78 963,097.26 929,545.28 898,376.13

A61 1,541,541.07 1,214,962.30 1,165,505.01 1,119,888.81 1,040,701.10 1,038,718.25 1,002,531.79 968,914.81

A62 1,613,960.63 1,308,688.01 1,255,414.67 1,206,280.25 1,120,935.77 1,118,847.92 1,079,869.97 1,043,659.65

A63 1,686,380.18 1,407,967.78 1,347,916.56 1,297,791.12 1,206,023.91 1,203,726.07 1,152,712.13 1,123,268.69

A64 1,758,799.74 1,513,096.01 1,451,501.75 1,394,692.89 1,296,073.68 1,293,604.27 1,248,538.20 1,206,672.10

A65 1,831,219.29 1,624,381.78 1,558,257.40 1,497,270.26 1,391,397.81 1,388,746.76 1,340,366.19 1,295,420.89

47



4.3.2 Tables for non academic staffs (executive officer)



RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 691,703.91 433,635.36 415,983.18 399,702.42 371,439.33 370,731.63 357,816.23 345,817.91

A51 756,444.45 479,167.08 459,661.42 441,671.18 410,440.46 409,658.45 395,386.93 382,128.79

A52 823,104.75 527,647.51 506,168.34 486,357.91 451,967.38 451,106.25 435,390.79 420,791.23

A53 891,684.82 579,239.71 555,660.35 533,912.90 496,159.75 495,214.41 477,962.33 461,935.26

A54 962,184.63 634,115.05 608,301.86 584,494.13 543,164.35 542,129.46 523,242.98 505,697.55

A55 1,034,604.18 692,453.64 664,265.63 638,267.59 593,135.47 592,005.37 571,381.33 552,221.72

A56 1,107,023.74 754,444.72 723,733.22 695,407.73 646,235.22 645,003.95 622,533.56 601,658.71

A57 1,179,443.29 820,287.17 786,895.39 756,097.86 702,633.93 701,295.20 676,863.76 654,167.11

A58 1,251,862.85 890,189.90 853,952.56 820,530.55 762,510.56 761,057.75 734,544.33 709,913.52

A59 1,324,282.40 964,372.40 888,110.67 853,351.77 793,010.98 791,500.06 763,926.10 738,310.07

A60 1,396,701.96 1,043,065.18 962,119.89 924,464.42 859,095.23 857,458.40 827,586.61 799,835.90

A61 1,469,121.51 1,126,510.42 1,080,653.04 1,038,358.43 964,935.78 963,097.26 929,545.28 898,376.13

A62 1,541,541.07 1,214,962.30 1,165,505.01 1,119,888.81 1,040,701.10 1,038,718.25 1,002,531.79 968,914.81

A63 1,613,960.63 1,308,688.01 1,255,414.67 1,206,280.25 1,120,935.77 1,118,847.92 1,079,869.97 1,043,659.65

A64 1,686,380.18 1,407,967.78 1,347,916.56 1,297,791.12 1,206,023.91 1,203,726.07 1,152,712.13 1,123,268.69

A65 1,758,799.74 1,513,096.01 1,451,501.75 1,394,692.89 1,296,073.68 1,293,604.27 1,248,538.20 1,206,672.10

ENTRY AGE : 35

RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 628,883.13 390,897.26 374,984.84 360,308.67 334,831.13 334,193.18 322,550.69 311,734.89

A51 691,703.91 433,635.36 415,983.18 399,702.42 371,439.33 370,731.63 357,816.23 345,817.91

A52 756,444.45 479,167.08 459,661.42 441,671.18 410,440.46 409,658.45 395,386.93 382,128.79

A53 823,104.75 527,647.51 506,168.34 486,357.91 451,967.38 451,106.25 435,390.79 420,791.23

A54 891,684.82 579,239.71 555,660.35 533,912.90 496,159.75 495,214.41 477,962.33 461,935.26

A55 962,184.63 634,115.05 608,301.86 584,494.13 543,164.35 542,129.46 523,242.98 505,697.55

A56 1,034,604.18 692,453.64 664,265.63 638,267.59 593,135.47 592,005.37 571,381.33 552,221.72

A57 1,107,023.74 754,444.72 723,733.22 695,407.73 646,235.22 645,003.95 622,533.56 601,658.71

A58 1,179,443.29 820,287.17 786,895.39 756,097.86 702,633.93 701,295.20 676,863.76 654,167.11

A59 1,251,862.85 890,189.90 853,952.56 820,530.55 762,510.56 761,057.75 734,544.33 709,913.52

A60 1,324,282.40 964,372.40 888,110.67 853,351.77 793,010.98 791,500.06 763,926.10 738,310.07

A61 1,396,701.96 1,043,065.18 962,119.89 924,464.42 859,095.23 857,458.40 827,586.61 799,835.90

A62 1,469,121.51 1,126,510.42 1,080,653.04 1,038,358.43 964,935.78 963,097.26 929,545.28 898,376.13

A63 1,541,541.07 1,214,962.30 1,165,505.01 1,119,888.81 1,040,701.10 1,038,718.25 1,002,531.79 968,914.81

A64 1,613,960.63 1,308,688.01 1,255,414.67 1,206,280.25 1,120,935.77 1,118,847.92 1,079,869.97 1,043,659.65

A65 1,686,380.18 1,407,967.78 1,347,916.56 1,297,791.12 1,206,023.91 1,203,726.07 1,152,712.13 1,123,268.69


RETIRES BENEFIT ACCORDING TO PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 430,138.57 189,038.67 181,343.39 174,245.97 167,687.67 161,616.46 155,986.13 150,755.59

A51 469,813.00 204,464.22 196,141.01 188,464.44 181,370.99 174,804.37 168,714.60 163,057.25

A52 510,851.44 220,821.36 211,832.29 203,541.59 195,880.67 188,788.72 182,211.77 176,101.83

A53 552,353.89 238,159.93 228,465.05 219,523.38 211,260.93 203,612.13 196,518.77 189,929.08

A54 597,020.34 256,532.26 246,089.50 236,458.04 227,558.20 219,319.35 211,678.79 204,580.76

A55 640,786.79 275,993.33 264,758.35 254,396.24 244,821.23 235,957.37 227,737.18 220,100.68

A56 648,553.24 279,078.00 284,526.98 273,391.15 263,101.22 253,575.52 244,741.55 236,534.86

A57 728,319.69 318,415.35 305,453.48 293,498.63 282,451.89 272,225.59 262,741.90 253,931.62

A58 772,086.15 341,500.46 327,598.85 314,777.28 302,929.65 291,961.94 281,790.69 272,341.66

A59 815,852.57 365,922.92 351,027.14 337,288.63 324,593.71 312,841.64 301,942.99 291,818.21

A60 859,619.05 391,752.77 375,805.52 361,097.24 347,506.21 334,924.58 323,256.62 312,417.15

A61 903,385.49 419,063.53 402,004.54 386,270.87 371,732.36 358,273.61 345,792.22 334,197.08

A62 947,151.95 447,932.36 429,698.18 412,880.65 397,340.58 382,954.68 369,613.46 357,219.55

A63 990,918.00 478,440.18 458,964.11 441,001.16 424,402.70 409,037.00 394,787.14 381,549.10

A64 1,034,684.85 510,671.94 489,883.80 470,710.72 452,994.04 436,593.18 421,383.32 407,253.46

A65 1,078,451.30 544,716.74 522,542.72 502,091.43 483,193.64 465,699.39 449,475.54 434,403.69

48





RETIRES BENEFIT ACCORDING TO PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 391,828.12 174,497.23 167,393.90 160,842.43 154,788.62 149,184.43 143,987.20 139,159.01

A51 430,138.57 189,038.67 181,343.39 174,245.97 167,687.67 161,616.46 155,986.13 150,755.59

A52 469,813.00 204,464.22 196,141.01 188,464.44 181,370.99 174,804.37 168,714.60 163,057.25

A53 510,851.44 220,821.36 211,832.29 203,541.59 195,880.67 188,788.72 182,211.77 176,101.83

A54 552,353.89 238,159.93 228,465.05 219,523.38 211,260.93 203,612.13 196,518.77 189,929.08

A55 597,020.34 256,532.26 246,089.50 236,458.04 227,558.20 219,319.35 211,678.79 204,580.76

A56 640,786.79 275,993.33 264,758.35 254,396.24 244,821.23 235,957.37 227,737.18 220,100.68

A57 648,553.24 279,078.00 284,526.98 273,391.15 263,101.22 253,575.52 244,741.55 236,534.86

A58 728,319.69 318,415.35 305,453.48 293,498.63 282,451.89 272,225.59 262,741.90 253,931.62

A59 772,086.15 341,500.46 327,598.85 314,777.28 302,929.65 291,961.94 281,790.69 272,341.66

A60 815,852.57 365,922.92 351,027.14 337,288.63 324,593.71 312,841.64 301,942.99 291,818.21

A61 859,619.05 391,752.77 375,805.52 361,097.24 347,506.21 334,924.58 323,256.62 312,417.15

A62 903,385.49 419,063.53 402,004.54 386,270.87 371,732.36 358,273.61 345,792.22 334,197.08

A63 947,151.95 447,932.36 429,698.18 412,880.65 397,340.58 382,954.68 369,613.46 357,219.55

A64 990,918.00 478,440.18 458,964.11 441,001.16 424,402.70 409,037.00 394,787.14 381,549.10

A65 1,034,684.85 510,671.94 489,883.80 470,710.72 452,994.04 436,593.18 421,383.32 407,253.46


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 354,881.68 167,785.80 160,955.67 154,656.18 148,835.21 143,446.56 138,449.23 133,806.74

A51 391,828.12 174,497.23 167,393.90 160,842.43 154,788.62 149,184.43 143,987.20 139,159.01

A52 430,138.57 189,038.67 181,343.39 174,245.97 167,687.67 161,616.46 155,986.13 150,755.59

A53 469,813.00 204,464.22 196,141.01 188,464.44 181,370.99 174,804.37 168,714.60 163,057.25

A54 510,851.44 220,821.36 211,832.29 203,541.59 195,880.67 188,788.72 182,211.77 176,101.83

A55 552,353.89 238,159.93 228,465.05 219,523.38 211,260.93 203,612.13 196,518.77 189,929.08

A56 597,020.34 256,532.26 246,089.50 236,458.04 227,558.20 219,319.35 211,678.79 204,580.76

A57 640,786.79 275,993.33 264,758.35 254,396.24 244,821.23 235,957.37 227,737.18 220,100.68

A58 648,553.24 279,078.00 284,526.98 273,391.15 263,101.22 253,575.52 244,741.55 236,534.86

A59 728,319.69 318,415.35 305,453.48 293,498.63 282,451.89 272,225.59 262,741.90 253,931.62

A60 772,086.15 341,500.46 327,598.85 314,777.28 302,929.65 291,961.94 281,790.69 272,341.66

A61 815,852.57 365,922.92 351,027.14 337,288.63 324,593.71 312,841.64 301,942.99 291,818.21

A62 859,619.05 391,752.77 375,805.52 361,097.24 347,506.21 334,924.58 323,256.62 312,417.15

A63 903,385.49 419,063.53 402,004.54 386,270.87 371,732.36 358,273.61 345,792.22 334,197.08

A64 947,151.95 447,932.36 429,698.18 412,880.65 397,340.58 382,954.68 369,613.46 357,219.55

A65 990,918.00 478,440.18 458,964.11 441,001.16 424,402.70 409,037.00 394,787.14 381,549.10


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 319,299.24 147,888.12 141,867.98 136,315.55 131,184.88 126,435.27 122,030.57 117,938.63

A51 354,881.68 167,785.80 160,955.67 154,656.18 148,835.21 143,446.56 138,449.23 133,806.74

A52 391,828.12 174,497.23 167,393.90 160,842.43 154,788.62 149,184.43 143,987.20 139,159.01

A53 430,138.57 189,038.67 181,343.39 174,245.97 167,687.67 161,616.46 155,986.13 150,755.59

A54 469,813.00 204,464.22 196,141.01 188,464.44 181,370.99 174,804.37 168,714.60 163,057.25

A55 510,851.44 220,821.36 211,832.29 203,541.59 195,880.67 188,788.72 182,211.77 176,101.83

A56 552,353.89 238,159.93 228,465.05 219,523.38 211,260.93 203,612.13 196,518.77 189,929.08

A57 597,020.34 256,532.26 246,089.50 236,458.04 227,558.20 219,319.35 211,678.79 204,580.76

A58 640,786.79 275,993.33 264,758.35 254,396.24 244,821.23 235,957.37 227,737.18 220,100.68

A59 648,553.24 279,078.00 284,526.98 273,391.15 263,101.22 253,575.52 244,741.55 236,534.86

A60 728,319.69 318,415.35 305,453.48 293,498.63 282,451.89 272,225.59 262,741.90 253,931.62

A61 772,086.15 341,500.46 327,598.85 314,777.28 302,929.65 291,961.94 281,790.69 272,341.66

A62 815,852.57 365,922.92 351,027.14 337,288.63 324,593.71 312,841.64 301,942.99 291,818.21

A63 859,619.05 391,752.77 375,805.52 361,097.24 347,506.21 334,924.58 323,256.62 312,417.15

A64 903,385.49 419,063.53 402,004.54 386,270.87 371,732.36 358,273.61 345,792.22 334,197.08

A65 947,151.95 447,932.36 429,698.18 412,880.65 397,340.58 382,954.68 369,613.46 357,219.55

49





RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 285,080.80 135,736.48 130,211.00 125,114.79 120,405.71 116,046.36 111,323.91 108,247.87

A51 319,299.24 147,888.12 141,867.98 136,315.55 131,184.88 126,435.27 122,030.57 117,938.63

A52 354,881.68 167,785.80 160,955.67 154,656.18 148,835.21 143,446.56 138,449.23 133,806.74

A53 391,828.12 174,497.23 167,393.90 160,842.43 154,788.62 149,184.43 143,987.20 139,159.01

A54 430,138.57 189,038.67 181,343.39 174,245.97 167,687.67 161,616.46 155,986.13 150,755.59

A55 469,813.00 204,464.22 196,141.01 188,464.44 181,370.99 174,804.37 168,714.60 163,057.25

A56 510,851.44 220,821.36 211,832.29 203,541.59 195,880.67 188,788.72 182,211.77 176,101.83

A57 552,353.89 238,159.93 228,465.05 219,523.38 211,260.93 203,612.13 196,518.77 189,929.08

A58 597,020.34 256,532.26 246,089.50 236,458.04 227,558.20 219,319.35 211,678.79 204,580.76

A59 640,786.79 275,993.33 264,758.35 254,396.24 244,821.23 235,957.37 227,737.18 220,100.68

A60 648,553.24 279,078.00 284,526.98 273,391.15 263,101.22 253,575.52 244,741.55 236,534.86

A61 728,319.69 318,415.35 305,453.48 293,498.63 282,451.89 272,225.59 262,741.90 253,931.62

A62 772,086.15 341,500.46 327,598.85 314,777.28 302,929.65 291,961.94 281,790.69 272,341.66

A63 815,852.57 365,922.92 351,027.14 337,288.63 324,593.71 312,841.64 301,942.99 291,818.21

A64 859,619.05 391,752.77 375,805.52 361,097.24 347,506.21 334,924.58 323,256.62 312,417.15

A65 903,385.49 419,063.53 402,004.54 386,270.87 371,732.36 358,273.61 345,792.22 334,197.08


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 252,226.38 124,300.80 119,240.84 114,573.99 110,261.64 106,269.56 102,567.39 99,128.09

A51 285,080.80 135,736.48 130,211.00 125,114.79 120,405.71 116,046.36 111,323.91 108,247.87

A52 319,299.24 147,888.12 141,867.98 136,315.55 131,184.88 126,435.27 122,030.57 117,938.63

A53 354,881.68 167,785.80 160,955.67 154,656.18 148,835.21 143,446.56 138,449.23 133,806.74

A54 391,828.12 174,497.23 167,393.90 160,842.43 154,788.62 149,184.43 143,987.20 139,159.01

A55 430,138.57 189,038.67 181,343.39 174,245.97 167,687.67 161,616.46 155,986.13 150,755.59

A56 469,813.00 204,464.22 196,141.01 188,464.44 181,370.99 174,804.37 168,714.60 163,057.25

A57 510,851.44 220,821.36 211,832.29 203,541.59 195,880.67 188,788.72 182,211.77 176,101.83

A58 552,353.89 238,159.93 228,465.05 219,523.38 211,260.93 203,612.13 196,518.77 189,929.08

A59 597,020.34 256,532.26 246,089.50 236,458.04 227,558.20 219,319.35 211,678.79 204,580.76

A60 640,786.79 275,993.33 264,758.35 254,396.24 244,821.23 235,957.37 227,737.18 220,100.68

A61 648,553.24 279,078.00 284,526.98 273,391.15 263,101.22 253,575.52 244,741.55 236,534.86

A62 728,319.69 318,415.35 305,453.48 293,498.63 282,451.89 272,225.59 262,741.90 253,931.62

A63 772,086.15 341,500.46 327,598.85 314,777.28 302,929.65 291,961.94 281,790.69 272,341.66

A64 815,852.57 365,922.92 351,027.14 337,288.63 324,593.71 312,841.64 301,942.99 291,818.21

A65 859,619.05 391,752.77 375,805.52 361,097.24 347,506.21 334,924.58 323,256.62 312,417.15


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 285,080.80 107,721.98 103,336.90 99,292.49 95,555.31 92,095.68 88,887.29 85,906.72

A51 252,226.38 124,300.80 119,240.84 114,573.99 110,261.64 106,269.56 102,567.39 99,128.09

A52 285,080.80 135,736.48 130,211.00 125,114.79 120,405.71 116,046.36 111,323.91 108,247.87

A53 319,299.24 147,888.12 141,867.98 136,315.55 131,184.88 126,435.27 122,030.57 117,938.63

A54 354,881.68 167,785.80 160,955.67 154,656.18 148,835.21 143,446.56 138,449.23 133,806.74

A55 391,828.12 174,497.23 167,393.90 160,842.43 154,788.62 149,184.43 143,987.20 139,159.01

A56 430,138.57 189,038.67 181,343.39 174,245.97 167,687.67 161,616.46 155,986.13 150,755.59

A57 469,813.00 204,464.22 196,141.01 188,464.44 181,370.99 174,804.37 168,714.60 163,057.25

A58 510,851.44 220,821.36 211,832.29 203,541.59 195,880.67 188,788.72 182,211.77 176,101.83

A59 552,353.89 238,159.93 228,465.05 219,523.38 211,260.93 203,612.13 196,518.77 189,929.08

A60 597,020.34 256,532.26 246,089.50 236,458.04 227,558.20 219,319.35 211,678.79 204,580.76

A61 640,786.79 275,993.33 264,758.35 254,396.24 244,821.23 235,957.37 227,737.18 220,100.68

A62 648,553.24 279,078.00 284,526.98 273,391.15 263,101.22 253,575.52 244,741.55 236,534.86

A63 728,319.69 318,415.35 305,453.48 293,498.63 282,451.89 272,225.59 262,741.90 253,931.62

A64 772,086.15 341,500.46 327,598.85 314,777.28 302,929.65 291,961.94 281,790.69 272,341.66

A65 815,852.57 365,922.92 351,027.14 337,288.63 324,593.71 312,841.64 301,942.99 291,818.21

50





RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 205,397.09 103,430.77 99,220.37 95,337.08 91,748.77 88,426.96 85,346.38 82,484.54

A51 285,080.80 107,721.98 103,336.90 99,292.49 95,555.31 92,095.68 88,887.29 85,906.72

A52 252,226.38 124,300.80 119,240.84 114,573.99 110,261.64 106,269.56 102,567.39 99,128.09

A53 285,080.80 135,736.48 130,211.00 125,114.79 120,405.71 116,046.36 111,323.91 108,247.87

A54 319,299.24 147,888.12 141,867.98 136,315.55 131,184.88 126,435.27 122,030.57 117,938.63

A55 354,881.68 167,785.80 160,955.67 154,656.18 148,835.21 143,446.56 138,449.23 133,806.74

A56 391,828.12 174,497.23 167,393.90 160,842.43 154,788.62 149,184.43 143,987.20 139,159.01

A57 430,138.57 189,038.67 181,343.39 174,245.97 167,687.67 161,616.46 155,986.13 150,755.59

A58 469,813.00 204,464.22 196,141.01 188,464.44 181,370.99 174,804.37 168,714.60 163,057.25

A59 510,851.44 220,821.36 211,832.29 203,541.59 195,880.67 188,788.72 182,211.77 176,101.83

A60 552,353.89 238,159.93 228,465.05 219,523.38 211,260.93 203,612.13 196,518.77 189,929.08

A61 597,020.34 256,532.26 246,089.50 236,458.04 227,558.20 219,319.35 211,678.79 204,580.76

A62 640,786.79 275,993.33 264,758.35 254,396.24 244,821.23 235,957.37 227,737.18 220,100.68

A63 648,553.24 279,078.00 284,526.98 273,391.15 263,101.22 253,575.52 244,741.55 236,534.86

A64 728,319.69 318,415.35 305,453.48 293,498.63 282,451.89 272,225.59 262,741.90 253,931.62

A65 772,086.15 341,500.46 327,598.85 314,777.28 302,929.65 291,961.94 281,790.69 272,341.66


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 183,341.48 93,927.52 90,103.97 86,577.48 83,318.86 80,302.27 77,504.73 74,905.83

A51 205,397.09 103,430.77 99,220.37 95,337.08 91,748.77 88,426.96 85,346.38 82,484.54

A52 285,080.80 107,721.98 103,336.90 99,292.49 95,555.31 92,095.68 88,887.29 85,906.72

A53 252,226.38 124,300.80 119,240.84 114,573.99 110,261.64 106,269.56 102,567.39 99,128.09

A54 285,080.80 135,736.48 130,211.00 125,114.79 120,405.71 116,046.36 111,323.91 108,247.87

A55 319,299.24 147,888.12 141,867.98 136,315.55 131,184.88 126,435.27 122,030.57 117,938.63

A56 354,881.68 167,785.80 160,955.67 154,656.18 148,835.21 143,446.56 138,449.23 133,806.74

A57 391,828.12 174,497.23 167,393.90 160,842.43 154,788.62 149,184.43 143,987.20 139,159.01

A58 430,138.57 189,038.67 181,343.39 174,245.97 167,687.67 161,616.46 155,986.13 150,755.59

A59 469,813.00 204,464.22 196,141.01 188,464.44 181,370.99 174,804.37 168,714.60 163,057.25

A60 510,851.44 220,821.36 211,832.29 203,541.59 195,880.67 188,788.72 182,211.77 176,101.83

A61 552,353.89 238,159.93 228,465.05 219,523.38 211,260.93 203,612.13 196,518.77 189,929.08

A62 597,020.34 256,532.26 246,089.50 236,458.04 227,558.20 219,319.35 211,678.79 204,580.76

A63 640,786.79 275,993.33 264,758.35 254,396.24 244,821.23 235,957.37 227,737.18 220,100.68

A64 648,553.24 279,078.00 284,526.98 273,391.15 263,101.22 253,575.52 244,741.55 236,534.86

A65 728,319.69 318,415.35 305,453.48 293,498.63 282,451.89 272,225.59 262,741.90 253,931.62


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 164,639.63 85,002.28 81,542.05 78,350.66 75,401.69 72,671.73 70,140.02 67,788.08

A51 183,341.48 93,927.52 90,103.97 86,577.48 83,318.86 80,302.27 77,504.73 74,905.83

A52 205,397.09 103,430.77 99,220.37 95,337.08 91,748.77 88,426.96 85,346.38 82,484.54

A53 285,080.80 107,721.98 103,336.90 99,292.49 95,555.31 92,095.68 88,887.29 85,906.72

A54 252,226.38 124,300.80 119,240.84 114,573.99 110,261.64 106,269.56 102,567.39 99,128.09

A55 285,080.80 135,736.48 130,211.00 125,114.79 120,405.71 116,046.36 111,323.91 108,247.87

A56 319,299.24 147,888.12 141,867.98 136,315.55 131,184.88 126,435.27 122,030.57 117,938.63

A57 354,881.68 167,785.80 160,955.67 154,656.18 148,835.21 143,446.56 138,449.23 133,806.74

A58 391,828.12 174,497.23 167,393.90 160,842.43 154,788.62 149,184.43 143,987.20 139,159.01

A59 430,138.57 189,038.67 181,343.39 174,245.97 167,687.67 161,616.46 155,986.13 150,755.59

A60 469,813.00 204,464.22 196,141.01 188,464.44 181,370.99 174,804.37 168,714.60 163,057.25

A61 510,851.44 220,821.36 211,832.29 203,541.59 195,880.67 188,788.72 182,211.77 176,101.83

A62 552,353.89 238,159.93 228,465.05 219,523.38 211,260.93 203,612.13 196,518.77 189,929.08

A63 597,020.34 256,532.26 246,089.50 236,458.04 227,558.20 219,319.35 211,678.79 204,580.76

A64 640,786.79 275,993.33 264,758.35 254,396.24 244,821.23 235,957.37 227,737.18 220,100.68

A65 648,553.24 279,078.00 284,526.98 273,391.15 263,101.22 253,575.52 244,741.55 236,534.86

51


4.3.3 Tables for non academic staffs (technical officer)


ENTRY AGE : 35

RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 146,503.73 76,624.65 73,505.46 70,628.60 67,970.27 65,509.37 63,227.19 61,107.05

A51 164,639.63 85,002.28 81,542.05 78,350.66 75,401.69 72,671.73 70,140.02 67,788.08

A52 183,341.48 93,927.52 90,103.97 86,577.48 83,318.86 80,302.27 77,504.73 74,905.83

A53 205,397.09 103,430.77 99,220.37 95,337.08 91,748.77 88,426.96 85,346.38 82,484.54

A54 285,080.80 107,721.98 103,336.90 99,292.49 95,555.31 92,095.68 88,887.29 85,906.72

A55 252,226.38 124,300.80 119,240.84 114,573.99 110,261.64 106,269.56 102,567.39 99,128.09

A56 285,080.80 135,736.48 130,211.00 125,114.79 120,405.71 116,046.36 111,323.91 108,247.87

A57 319,299.24 147,888.12 141,867.98 136,315.55 131,184.88 126,435.27 122,030.57 117,938.63

A58 354,881.68 167,785.80 160,955.67 154,656.18 148,835.21 143,446.56 138,449.23 133,806.74

A59 391,828.12 174,497.23 167,393.90 160,842.43 154,788.62 149,184.43 143,987.20 139,159.01

A60 430,138.57 189,038.67 181,343.39 174,245.97 167,687.67 161,616.46 155,986.13 150,755.59

A61 469,813.00 204,464.22 196,141.01 188,464.44 181,370.99 174,804.37 168,714.60 163,057.25

A62 510,851.44 220,821.36 211,832.29 203,541.59 195,880.67 188,788.72 182,211.77 176,101.83

A63 552,353.89 238,159.93 228,465.05 219,523.38 211,260.93 203,612.13 196,518.77 189,929.08

A64 597,020.34 256,532.26 246,089.50 236,458.04 227,558.20 219,319.35 211,678.79 204,580.76

A65 640,786.79 275,993.33 264,758.35 254,396.24 244,821.23 235,957.37 227,737.18 220,100.68


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 858,617.24 515,154.49 494,183.87 474,842.49 456,970.30 440,425.48 425,082.11 410,828.22

A51 906,655.09 557,191.09 534,509.27 513,589.64 494,259.08 476,364.20 459,768.81 444,351.81

A52 954,694.14 601,766.38 577,270.02 554,676.81 533,799.80 514,473.33 496,550.32 479,899.95

A53 1,002,732.60 649,016.18 622,596.40 598,229.21 575,712.97 554,869.02 535,538.71 517,580.98

A54 1,050,771.05 699,083.15 670,625.27 644,378.32 620,125.12 597,673.20 576,851.70 557,508.66

A55 1,098,809.50 752,117.04 721,500.29 693,262.20 667,169.09 643,013.92 620,612.86 599,802.42

A56 1,146,847.95 808,275.11 775,372.31 745,025.77 716,984.39 691,025.63 666,951.96 644,587.67

A57 1,194,886.40 867,722.44 832,399.69 799,821.22 769,717.43 741,849.45 716,005.20 691,996.05

A58 1,242,924.85 930,632.32 892,748.67 857,808.25 825,521.94 795,633.54 767,915.58 742,165.76

A59 1,290,963.31 997,186.63 956,593.73 919,154.54 884,559.27 852,533.39 822,833.17 795,241.86

A60 1,339,001.76 1,067,576.28 1,024,117.99 984,036.04 946,998.75 912,712.22 880,915.52 851,376.58

A61 1,387,040.21 1,142,001.59 1,095,513.65 1,052,637.41 1,013,018.09 976,341.30 942,327.91 910,729.69

A62 1,435,078.66 1,220,672.81 1,170,982.36 1,125,152.43 1,082,803.78 1,043,600.36 1,007,243.83 973,468.85

A63 1,483,117.11 1,303,810.53 1,250,735.76 1,201,784.43 1,156,551.50 1,114,678.01 1,075,845.31 1,039,769.97

A64 1,531,155.57 1,391,646.19 1,250,735.76 1,282,746.75 1,234,466.55 1,189,772.11 1,148,323.31 1,109,817.63

A65 1,579,194.62 1,484,422.60 1,334,995.85 1,368,263.20 1,316,764.32 1,269,090.25 1,224,878.19 1,183,805.47

52





RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 810,578.79 835,618.44 456,169.73 438,316.15 421,818.74 406,546.60 392,383.49 395,886.91

A51 858,617.24 515,154.49 494,183.87 474,842.49 456,970.30 440,425.48 425,082.11 410,828.22

A52 906,655.09 557,191.09 534,509.27 513,589.64 494,259.08 476,364.20 459,768.81 444,351.81

A53 954,694.14 601,766.38 577,270.02 554,676.81 533,799.80 514,473.33 496,550.32 479,899.95

A54 1,002,732.60 649,016.18 622,596.40 598,229.21 575,712.97 554,869.02 535,538.71 517,580.98

A55 1,050,771.05 699,083.15 670,625.27 644,378.32 620,125.12 597,673.20 576,851.70 557,508.66

A56 1,098,809.50 752,117.04 721,500.29 693,262.20 667,169.09 643,013.92 620,612.86 599,802.42

A57 1,146,847.95 808,275.11 775,372.31 745,025.77 716,984.39 691,025.63 666,951.96 644,587.67

A58 1,194,886.40 867,722.44 832,399.69 799,821.22 769,717.43 741,849.45 716,005.20 691,996.05

A59 1,242,924.85 930,632.32 892,748.67 857,808.25 825,521.94 795,633.54 767,915.58 742,165.76

A60 1,290,963.31 997,186.63 956,593.73 919,154.54 884,559.27 852,533.39 822,833.17 795,241.86

A61 1,339,001.76 1,067,576.28 1,024,117.99 984,036.04 946,998.75 912,712.22 880,915.52 851,376.58

A62 1,387,040.21 1,142,001.59 1,095,513.65 1,052,637.41 1,013,018.09 976,341.30 942,327.91 910,729.69

A63 1,435,078.66 1,220,672.81 1,170,982.36 1,125,152.43 1,082,803.78 1,043,600.36 1,007,243.83 973,468.85

A64 1,483,117.11 1,303,810.53 1,250,735.76 1,201,784.43 1,156,551.50 1,114,678.01 1,075,845.31 1,039,769.97

A65 1,531,155.57 1,391,646.19 1,250,735.76 1,282,746.75 1,234,466.55 1,189,772.11 1,148,323.31 1,109,817.63


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 762,540.34 438,186.14 420,348.71 403,897.09 388,695.15 374,622.26 361,571.32 349,447.08

A51 810,578.79 835,618.44 456,169.73 438,316.15 421,818.74 406,546.60 392,383.49 395,886.91

A52 858,617.24 515,154.49 494,183.87 474,842.49 456,970.30 440,425.48 425,082.11 410,828.22

A53 906,655.09 557,191.09 534,509.27 513,589.64 494,259.08 476,364.20 459,768.81 444,351.81

A54 954,694.14 601,766.38 577,270.02 554,676.81 533,799.80 514,473.33 496,550.32 479,899.95

A55 1,002,732.60 649,016.18 622,596.40 598,229.21 575,712.97 554,869.02 535,538.71 517,580.98

A56 1,050,771.05 699,083.15 670,625.27 644,378.32 620,125.12 597,673.20 576,851.70 557,508.66

A57 1,098,809.50 752,117.04 721,500.29 693,262.20 667,169.09 643,013.92 620,612.86 599,802.42

A58 1,146,847.95 808,275.11 775,372.31 745,025.77 716,984.39 691,025.63 666,951.96 644,587.67

A59 1,194,886.40 867,722.44 832,399.69 799,821.22 769,717.43 741,849.45 716,005.20 691,996.05

A60 1,242,924.85 930,632.32 892,748.67 857,808.25 825,521.94 795,633.54 767,915.58 742,165.76

A61 1,290,963.31 997,186.63 956,593.73 919,154.54 884,559.27 852,533.39 822,833.17 795,241.86

A62 1,339,001.76 1,067,576.28 1,024,117.99 984,036.04 946,998.75 912,712.22 880,915.52 851,376.58

A63 1,387,040.21 1,142,001.59 1,095,513.65 1,052,637.41 1,013,018.09 976,341.30 942,327.91 910,729.69

A64 1,435,078.66 1,220,672.81 1,170,982.36 1,125,152.43 1,082,803.78 1,043,600.36 1,007,243.83 973,468.85

A65 1,483,117.11 1,303,810.53 1,250,735.76 1,201,784.43 1,156,551.50 1,114,678.01 1,075,845.31 1,039,769.97


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 714,501.88 403,014.01 386,608.34 371,477.26 357,495.54 344,552.25 332,548.88 321,397.82

A51 762,540.34 438,186.14 420,348.71 403,897.09 388,695.15 374,622.26 361,571.32 349,447.08

A52 810,578.79 835,618.44 456,169.73 438,316.15 421,818.74 406,546.60 392,383.49 395,886.91

A53 858,617.24 515,154.49 494,183.87 474,842.49 456,970.30 440,425.48 425,082.11 410,828.22

A54 906,655.09 557,191.09 534,509.27 513,589.64 494,259.08 476,364.20 459,768.81 444,351.81

A55 954,694.14 601,766.38 577,270.02 554,676.81 533,799.80 514,473.33 496,550.32 479,899.95

A56 1,002,732.60 649,016.18 622,596.40 598,229.21 575,712.97 554,869.02 535,538.71 517,580.98

A57 1,050,771.05 699,083.15 670,625.27 644,378.32 620,125.12 597,673.20 576,851.70 557,508.66

A58 1,098,809.50 752,117.04 721,500.29 693,262.20 667,169.09 643,013.92 620,612.86 599,802.42

A59 1,146,847.95 808,275.11 775,372.31 745,025.77 716,984.39 691,025.63 666,951.96 644,587.67

A60 1,194,886.40 867,722.44 832,399.69 799,821.22 769,717.43 741,849.45 716,005.20 691,996.05

A61 1,242,924.85 930,632.32 892,748.67 857,808.25 825,521.94 795,633.54 767,915.58 742,165.76

A62 1,290,963.31 997,186.63 956,593.73 919,154.54 884,559.27 852,533.39 822,833.17 795,241.86

A63 1,339,001.76 1,067,576.28 1,024,117.99 984,036.04 946,998.75 912,712.22 880,915.52 851,376.58

A64 1,387,040.21 1,142,001.59 1,095,513.65 1,052,637.41 1,013,018.09 976,341.30 942,327.91 910,729.69

A65 1,435,078.66 1,220,672.81 1,170,982.36 1,125,152.43 1,082,803.78 1,043,600.36 1,007,243.83 973,468.85

53





RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 655,794.82 369,899.22 354,841.57 340,953.78 328,120.91 316,241.14 305,224.06 294,989.26

A51 714,501.88 403,014.01 386,608.34 371,477.26 357,495.54 344,552.25 332,548.88 321,397.82

A52 762,540.34 438,186.14 420,348.71 403,897.09 388,695.15 374,622.26 361,571.32 349,447.08

A53 810,578.79 835,618.44 456,169.73 438,316.15 421,818.74 406,546.60 392,383.49 395,886.91

A54 858,617.24 515,154.49 494,183.87 474,842.49 456,970.30 440,425.48 425,082.11 410,828.22

A55 906,655.09 557,191.09 534,509.27 513,589.64 494,259.08 476,364.20 459,768.81 444,351.81

A56 954,694.14 601,766.38 577,270.02 554,676.81 533,799.80 514,473.33 496,550.32 479,899.95

A57 1,002,732.60 649,016.18 622,596.40 598,229.21 575,712.97 554,869.02 535,538.71 517,580.98

A58 1,050,771.05 699,083.15 670,625.27 644,378.32 620,125.12 597,673.20 576,851.70 557,508.66

A59 1,098,809.50 752,117.04 721,500.29 693,262.20 667,169.09 643,013.92 620,612.86 599,802.42

A60 1,146,847.95 808,275.11 775,372.31 745,025.77 716,984.39 691,025.63 666,951.96 644,587.67

A61 1,194,886.40 867,722.44 832,399.69 799,821.22 769,717.43 741,849.45 716,005.20 691,996.05

A62 1,242,924.85 930,632.32 892,748.67 857,808.25 825,521.94 795,633.54 767,915.58 742,165.76

A63 1,290,963.31 997,186.63 956,593.73 919,154.54 884,559.27 852,533.39 822,833.17 795,241.86

A64 1,339,001.76 1,067,576.28 1,024,117.99 984,036.04 946,998.75 912,712.22 880,915.52 851,376.58

A65 1,387,040.21 1,142,001.59 1,095,513.65 1,052,637.41 1,013,018.09 976,341.30 942,327.91 910,729.69


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 618,424.98 338,735.55 324,946.50 312,228.73 300,477.02 289,598.11 279,509.21 270,136.68

A51 655,794.82 369,899.22 354,841.57 340,953.78 328,120.91 316,241.14 305,224.06 294,989.26

A52 714,501.88 403,014.01 386,608.34 371,477.26 357,495.54 344,552.25 332,548.88 321,397.82

A53 762,540.34 438,186.14 420,348.71 403,897.09 388,695.15 374,622.26 361,571.32 349,447.08

A54 810,578.79 835,618.44 456,169.73 438,316.15 421,818.74 406,546.60 392,383.49 395,886.91

A55 858,617.24 515,154.49 494,183.87 474,842.49 456,970.30 440,425.48 425,082.11 410,828.22

A56 906,655.09 557,191.09 534,509.27 513,589.64 494,259.08 476,364.20 459,768.81 444,351.81

A57 954,694.14 601,766.38 577,270.02 554,676.81 533,799.80 514,473.33 496,550.32 479,899.95

A58 1,002,732.60 649,016.18 622,596.40 598,229.21 575,712.97 554,869.02 535,538.71 517,580.98

A59 1,050,771.05 699,083.15 670,625.27 644,378.32 620,125.12 597,673.20 576,851.70 557,508.66

A60 1,098,809.50 752,117.04 721,500.29 693,262.20 667,169.09 643,013.92 620,612.86 599,802.42

A61 1,146,847.95 808,275.11 775,372.31 745,025.77 716,984.39 691,025.63 666,951.96 644,587.67

A62 1,194,886.40 867,722.44 832,399.69 799,821.22 769,717.43 741,849.45 716,005.20 691,996.05

A63 1,242,924.85 930,632.32 892,748.67 857,808.25 825,521.94 795,633.54 767,915.58 742,165.76

A64 1,290,963.31 997,186.63 956,593.73 919,154.54 884,559.27 852,533.39 822,833.17 795,241.86

A65 1,339,001.76 1,067,576.28 1,024,117.99 984,036.04 946,998.75 912,712.22 880,915.52 851,376.58


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 570,386.53 309,421.90 296,826.13 285,208.94 274,474.20 264,536.74 255,320.91 246,759.47

A51 618,424.98 338,735.55 324,946.50 312,228.73 300,477.02 289,598.11 279,509.21 270,136.68

A52 655,794.82 369,899.22 354,841.57 340,953.78 328,120.91 316,241.14 305,224.06 294,989.26

A53 714,501.88 403,014.01 386,608.34 371,477.26 357,495.54 344,552.25 332,548.88 321,397.82

A54 762,540.34 438,186.14 420,348.71 403,897.09 388,695.15 374,622.26 361,571.32 349,447.08

A55 810,578.79 835,618.44 456,169.73 438,316.15 421,818.74 406,546.60 392,383.49 395,886.91

A56 858,617.24 515,154.49 494,183.87 474,842.49 456,970.30 440,425.48 425,082.11 410,828.22

A57 906,655.09 557,191.09 534,509.27 513,589.64 494,259.08 476,364.20 459,768.81 444,351.81

A58 954,694.14 601,766.38 577,270.02 554,676.81 533,799.80 514,473.33 496,550.32 479,899.95

A59 1,002,732.60 649,016.18 622,596.40 598,229.21 575,712.97 554,869.02 535,538.71 517,580.98

A60 1,050,771.05 699,083.15 670,625.27 644,378.32 620,125.12 597,673.20 576,851.70 557,508.66

A61 1,098,809.50 752,117.04 721,500.29 693,262.20 667,169.09 643,013.92 620,612.86 599,802.42

A62 1,146,847.95 808,275.11 775,372.31 745,025.77 716,984.39 691,025.63 666,951.96 644,587.67

A63 1,194,886.40 867,722.44 832,399.69 799,821.22 769,717.43 741,849.45 716,005.20 691,996.05

A64 1,242,924.85 930,632.32 892,748.67 857,808.25 825,521.94 795,633.54 767,915.58 742,165.76

A65 1,290,963.31 997,186.63 956,593.73 919,154.54 884,559.27 852,533.39 822,833.17 795,241.86

54





RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 523,712.08 281,862.05 270,388.17 259,805.71 250,027.11 240,974.76 232,579.78 224,780.89

A51 570,386.53 309,421.90 296,826.13 285,208.94 274,474.20 264,536.74 255,320.91 246,759.47

A52 618,424.98 338,735.55 324,946.50 312,228.73 300,477.02 289,598.11 279,509.21 270,136.68

A53 655,794.82 369,899.22 354,841.57 340,953.78 328,120.91 316,241.14 305,224.06 294,989.26

A54 714,501.88 403,014.01 386,608.34 371,477.26 357,495.54 344,552.25 332,548.88 321,397.82

A55 762,540.34 438,186.14 420,348.71 403,897.09 388,695.15 374,622.26 361,571.32 349,447.08

A56 810,578.79 835,618.44 456,169.73 438,316.15 421,818.74 406,546.60 392,383.49 395,886.91

A57 858,617.24 515,154.49 494,183.87 474,842.49 456,970.30 440,425.48 425,082.11 410,828.22

A58 906,655.09 557,191.09 534,509.27 513,589.64 494,259.08 476,364.20 459,768.81 444,351.81

A59 954,694.14 601,766.38 577,270.02 554,676.81 533,799.80 514,473.33 496,550.32 479,899.95

A60 1,002,732.60 649,016.18 622,596.40 598,229.21 575,712.97 554,869.02 535,538.71 517,580.98

A61 1,050,771.05 699,083.15 670,625.27 644,378.32 620,125.12 597,673.20 576,851.70 557,508.66

A62 1,098,809.50 752,117.04 721,500.29 693,262.20 667,169.09 643,013.92 620,612.86 599,802.42

A63 1,146,847.95 808,275.11 775,372.31 745,025.77 716,984.39 691,025.63 666,951.96 644,587.67

A64 1,194,886.40 867,722.44 832,399.69 799,821.22 769,717.43 741,849.45 716,005.20 691,996.05

A65 1,242,924.85 930,632.32 892,748.67 857,808.25 825,521.94 795,633.54 767,915.58 742,165.76


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 478,401.64 255,964.47 245,544.81 235,934.68 227,054.53 218,833.92 211,210.27 204,127.95

A51 523,712.08 281,862.05 270,388.17 259,805.71 250,027.11 240,974.76 232,579.78 224,780.89

A52 570,386.53 309,421.90 296,826.13 285,208.94 274,474.20 264,536.74 255,320.91 246,759.47

A53 618,424.98 338,735.55 324,946.50 312,228.73 300,477.02 289,598.11 279,509.21 270,136.68

A54 655,794.82 369,899.22 354,841.57 340,953.78 328,120.91 316,241.14 305,224.06 294,989.26

A55 714,501.88 403,014.01 386,608.34 371,477.26 357,495.54 344,552.25 332,548.88 321,397.82

A56 762,540.34 438,186.14 420,348.71 403,897.09 388,695.15 374,622.26 361,571.32 349,447.08

A57 810,578.79 835,618.44 456,169.73 438,316.15 421,818.74 406,546.60 392,383.49 395,886.91

A58 858,617.24 515,154.49 494,183.87 474,842.49 456,970.30 440,425.48 425,082.11 410,828.22

A59 906,655.09 557,191.09 534,509.27 513,589.64 494,259.08 476,364.20 459,768.81 444,351.81

A60 954,694.14 601,766.38 577,270.02 554,676.81 533,799.80 514,473.33 496,550.32 479,899.95

A61 1,002,732.60 649,016.18 622,596.40 598,229.21 575,712.97 554,869.02 535,538.71 517,580.98

A62 1,050,771.05 699,083.15 670,625.27 644,378.32 620,125.12 597,673.20 576,851.70 557,508.66

A63 1,098,809.50 752,117.04 721,500.29 693,262.20 667,169.09 643,013.92 620,612.86 599,802.42

A64 1,146,847.95 808,275.11 775,372.31 745,025.77 716,984.39 691,025.63 666,951.96 644,587.67

A65 1,194,886.40 867,722.44 832,399.69 799,821.22 769,717.43 741,849.45 716,005.20 691,996.05


RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 434,455.21 231,642.05 222,212.50 213,515.54 205,479.21 198,039.74 191,140.51 184,731.17

A51 478,401.64 255,964.47 245,544.81 235,934.68 227,054.53 218,833.92 211,210.27 204,127.95

A52 523,712.08 281,862.05 270,388.17 259,805.71 250,027.11 240,974.76 232,579.78 224,780.89

A53 570,386.53 309,421.90 296,826.13 285,208.94 274,474.20 264,536.74 255,320.91 246,759.47

A54 618,424.98 338,735.55 324,946.50 312,228.73 300,477.02 289,598.11 279,509.21 270,136.68

A55 655,794.82 369,899.22 354,841.57 340,953.78 328,120.91 316,241.14 305,224.06 294,989.26

A56 714,501.88 403,014.01 386,608.34 371,477.26 357,495.54 344,552.25 332,548.88 321,397.82

A57 762,540.34 438,186.14 420,348.71 403,897.09 388,695.15 374,622.26 361,571.32 349,447.08

A58 810,578.79 835,618.44 456,169.73 438,316.15 421,818.74 406,546.60 392,383.49 395,886.91

A59 858,617.24 515,154.49 494,183.87 474,842.49 456,970.30 440,425.48 425,082.11 410,828.22

A60 906,655.09 557,191.09 534,509.27 513,589.64 494,259.08 476,364.20 459,768.81 444,351.81

A61 954,694.14 601,766.38 577,270.02 554,676.81 533,799.80 514,473.33 496,550.32 479,899.95

A62 1,002,732.60 649,016.18 622,596.40 598,229.21 575,712.97 554,869.02 535,538.71 517,580.98

A63 1,050,771.05 699,083.15 670,625.27 644,378.32 620,125.12 597,673.20 576,851.70 557,508.66

A64 1,098,809.50 752,117.04 721,500.29 693,262.20 667,169.09 643,013.92 620,612.86 599,802.42

A65 1,146,847.95 808,275.11 775,372.31 745,025.77 716,984.39 691,025.63 666,951.96 644,587.67

55


The tables above show the retirement benefit of an individual who is employed at age

25,26,27...35 and his retirement benefit when he retires at age 50,51,52...65 according to the

pension act of 2014 and the general model of inflationary effect assuming inflation rates are

7%,8%,9%,10%,11%,12%,13%.

The tables show the benefits for different levels of employment which are teaching staffs and

non teaching staffs which are further divided into executive staffs and technical staffs.

ENTRY AGE : 35

RETIRES


PENSION ACT OF 2014

EPV OF

RETIREMENT

BENEFIT


A50 391,872.76 208,811.95 200,311.75 192,471.94 185,227.66 178,521.40 172,302.15 166,524.50

A51 434,455.21 231,642.05 222,212.50 213,515.54 205,479.21 198,039.74 191,140.51 184,731.17

A52 478,401.64 255,964.47 245,544.81 235,934.68 227,054.53 218,833.92 211,210.27 204,127.95

A53 523,712.08 281,862.05 270,388.17 259,805.71 250,027.11 240,974.76 232,579.78 224,780.89

A54 570,386.53 309,421.90 296,826.13 285,208.94 274,474.20 264,536.74 255,320.91 246,759.47

A55 618,424.98 338,735.55 324,946.50 312,228.73 300,477.02 289,598.11 279,509.21 270,136.68

A56 655,794.82 369,899.22 354,841.57 340,953.78 328,120.91 316,241.14 305,224.06 294,989.26

A57 714,501.88 403,014.01 386,608.34 371,477.26 357,495.54 344,552.25 332,548.88 321,397.82

A58 762,540.34 438,186.14 420,348.71 403,897.09 388,695.15 374,622.26 361,571.32 349,447.08

A59 810,578.79 835,618.44 456,169.73 438,316.15 421,818.74 406,546.60 392,383.49 395,886.91

A60 858,617.24 515,154.49 494,183.87 474,842.49 456,970.30 440,425.48 425,082.11 410,828.22

A61 906,655.09 557,191.09 534,509.27 513,589.64 494,259.08 476,364.20 459,768.81 444,351.81

A62 954,694.14 601,766.38 577,270.02 554,676.81 533,799.80 514,473.33 496,550.32 479,899.95

A63 1,002,732.60 649,016.18 622,596.40 598,229.21 575,712.97 554,869.02 535,538.71 517,580.98

A64 1,050,771.05 699,083.15 670,625.27 644,378.32 620,125.12 597,673.20 576,851.70 557,508.66

A65 1,098,809.50 752,117.04 721,500.29 693,262.20 667,169.09 643,013.92 620,612.86 599,802.42

56

4.3.2 Tables showing accumulation of contribution accounting for real rates of return

in an inflationary environment

Table for academic staffs when he joins at different ages

Table 4.32

.

Figure 4.0 A graphical representation for table 4.32

TEACHING STAFFS

JOINS

NO INFLATION 7% % CHANGE 10% % CHANGE 13% % CHANGE

A25 37,062,601.95 33,899,462.85 9.33 33,693,200.03 10.00 32,999,086.29 12.31402

A26 35,949,151.28 32,858,854.76 9.40 32,680,972.15 10.00 32,013,731.72 12.29291

A27 34,835,700.61 31,818,248.73 9.48 31,668,746.28 10.00 31,010,625.01 12.33473

A28 33,722,249.95 30,847,498.36 9.32 30,656,518.40 10.00 30,025,270.43 12.31289

A29 32,608,799.28 29,806,890.26 9.40 29,644,290.53 10.00 29,039,915.86 12.28958

A30 31,235,447.41 28,766,284.23 8.58 28,632,064.66 9.09 28,036,809.15 11.40871

A31 30,381,897.95 27,795,533.87 9.30 27,619,836.78 10.00 27,051,454.58 12.31151

A32 29,268,447.28 26,754,925.77 9.39 26,607,608.90 10.00 26,066,100.01 12.28549

A33 28,154,996.62 25,714,319.74 9.49 25,595,383.04 10.00 25,062,993.29 12.33693

A34 26,816,485.01 24,743,569.38 8.38 24,583,155.16 9.08 24,077,638.72 11.37506

A35 25,928,095.28 23,702,961.28 9.39 23,570,927.28 10.00 23,092,284.15 12.28034

INFLATION RATES

0.00

5,000,000.00

10,000,000.00

15,000,000.00

20,000,000.00

25,000,000.00

30,000,000.00

35,000,000.00

40,000,000.00

A25 A26 A27 A28 A29 A30 A31 A32 A33 A34 A35

NO INFLATION

7%

10%

13%

57

Table for non academic staffs when he joins at different ages

i. Executive staffs

Table 4.33

Figure 4.1 a graphical representation of table 4.33

NON TEACHING STAFFS (EXECUTIVE)

JOINS INFLATION RATES

NO INFLATION 7.00% % CHANGE 10.00% % CHANGE 13.00% % CHANGE

A25 16,520,997 15,496,438 7 15,073,808 10 14,673,618 13

A26 15,908,280 14,867,551 7 14,462,072 10 14,078,124 13

A27 15,235,370 14,238,664 7 13,850,337 10 13,482,629 13

A28 14,562,461 13,609,777 7 13,238,601 10 12,887,134 13

A29 13,889,552 12,980,890 7 12,626,865 10 12,291,639 13

A30 13,216,643 12,352,003 7 12,015,130 10 11,696,144 13

A31 12,543,734 11,723,116 7 11,403,394 10 11,100,649 13

A32 11,870,824 11,094,228 7 10,791,659 10 10,505,154 13

A33 11,197,915 10,465,341 7 10,179,923 10 9,909,660 13

A34 11,118,983 9,836,454 13 9,568,187 16 9,314,165 19

A35 9,852,097 9,207,567 7 8,956,452 10 8,718,670 13

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

A25 A26 A27 A28 A29 A30 A31 A32 A33 A34 A35

NO INFLATION

7.00%

10.00%

13.00%

58

ii. Technological staff

Table 4.34

Figure 4.3 Graphical representation of table 4.34

SSS

NON TEACHING STAFFS (TECHNOLOGICAL)

JOINS INFLATION RATES

NO INFLATION 7.00% % CHANGE 10.00% % CHANGE 13.00% % CHANGE

A25 24,280,108 22,691,690 7 22,072,825 10 21,486,821 13

A26 23,541,517 22,001,418 7 21,401,379 10 20,833,201 13

A27 22,802,926 21,311,145 7 20,729,932 10 20,179,580 13

A28 22,064,334 20,620,873 7 20,058,486 10 19,525,960 13

A29 21,325,743 19,930,601 7 19,387,039 10 18,872,339 13

A30 20,587,152 19,240,329 7 18,715,593 10 18,218,719 13

A31 19,848,561 18,550,057 7 18,044,146 10 17,565,098 13

A32 19,109,970 17,859,785 7 17,372,700 10 16,911,478 13

A33 18,371,378 17,169,513 7 16,701,253 10 16,257,857 13

A34 17,632,787 16,479,240 7 16,029,807 10 15,604,236 13

A35 16,894,196 15,788,968 7 15,358,360 10 14,950,616 13

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

A25 A26 A27 A28 A29 A30 A31 A32 A33 A34 A35

NO INFLATION

7.00%

10.00%

13.00%

59

4.4 Summary of research findings

The following table is a summary of findings from the research

Table 4.35

Research questions Remarks

i How does inflation affect the real value

of retirement benefits?

Inflation rates have a negative effect on the

real value of retirement benefits.

As seen in table 4.2; at age 55 using the 2014

pension act as a basis, benefit is 1,098,809.50

but when we consider the effect of inflation

at 7% it reduces the benefit to 752,117.04

When we consider the effect as 12% it dips to

620612.86

ii What effect does the age of retirement

have on the retirement benefits?

Retirement benefit reduces as the entry age

increases. This is evident in the result shown

in table 4.0 when an individual enters at age

25 and retires at age 58 ,considering inflation

rate at 7% his retirement benefit is

1,742,149.51 and table 4.2, when an

individual enters at 27 and retires at age 58

also considering the same inflation rate above

the retirement benefit reduces to

1,513,096.01

60

CHAPTER 5

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Preamble

This chapter provides solutions to the aims and objectives of the study and research questions

and also offer recommendations to the study.

5.2 Summary

This study examines the effect of inflation rate on the retirement benefits of both academic

staffs and non academic staffs of the University of Lagos by comparing the benefits received

in accordance with the 2014 pension act against that received in an inflationary environment.

Inflation has been a biting issue in the Nigerian economy, which has been a thorn in the flesh

of retirees. The effect of inflation on their retirement benefits is best measured using the

general model of inflationary effect.

As the aim of this research is identifying the benefits of retirees in an inflationary

environment, it can be observed that this objective of this study has been met by showing that

inflation rates lead to a decrease in the real value of retirement benefits which in turn reduces

the retiree’s purchasing power. Also, it is vividly shown that the older an individual is at the

point of employment reduces the amount accessible to him after retirement which might be a

cause of concern when inflation comes into the picture.

5.3 Conclusion

This research study has displayed how inflation reduces the real value of retirement benefits

and the relationship between age of employment and retirement benefit using the academic

61

and non academic staffs of the University of Lagos as a case study. Furthermore, reveals that

an older entry age leads to a lesser retirement income

5.4 Recommendations

The recommendations of this research are

i. Employees of the university of Lagos should work for more years so as to increase

the worth of their retirement savings account

ii. The 2014 pension act only talks about purchasing annuity for life, further

amendments should include ways by which a retiree can purchase securities that

pay high interest over a short period of time so as to counter balance the effects of

inflation.

62

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