CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF STUDY
Pension is generally a way of catering for the need of the retiree. It is a form of income provided to workers after they
retire, become disabled or die. Pension is paid to those who are considered to be retired due to their deterioration in
their physical, mental, emotional and economic contribution to the society. The Longman Dictionary of Contemporary
English defines pension as an amount of money paid regularly by a government or company to someone who is
officially considered to be too old or too ill to earn money.  This fund is to provide the employees with a means of
securing upon retirement a standard of living that is consistent with that which they were enjoying while still in service.
Pensions helps a former employee to acclimate themselves back into the society upon retirement (Armstrong, 2010).
A retirement plan may be established by employers, the government, insurance companies or other institutions.
Pension and related issues (such as retirement planning) have received momentous consideration in many countries
in the past decades. Different countries have opted for different forms of contributory pension schemes (Robolino,
2006), in which employers and employees are demanded to pay certain percentages of their monthly earnings into a
Retirement Savings Account (RSA) from which they will be receiving their pension benefits from after retirement. The
money paid into a retirement savings account is known as pension fund. A pension fund also known as
superannuation in some countries is any plan or scheme which provides retirement benefits or income. The
management of these funds however requires a lot of care and attention.
The National Pension Commission (PenCom), which is the governing body in Nigeria comprises of the pension fund
administrators and pension custodians. It is the entity that deals with regulating, supervising and ensuring effective
administration of pension matters in Nigeria. The most important part of this system is the Pension Fund
Administrators has they manage the pension funds, maintain books of account on all transactions relating to the
pension funds, provide regular information to the employers and pay retirement benefits to pensioners. The influence
of the PFA is rather strong on the rest of the system.
A management system by the International Standard Organization is a set of interrelated or interacting elements that
organizations use to formulate policies and objectives and to establish the processes that are needed to ensure that
policies are followed and objectives are achieved. A system is defined as a combination of things or parts forming a
unitary whole.
A management information system is explained as an automated tool used by organisations to manage, evaluate and
organise departments. It’s simply involves the planning and administration of the organisations data to form
information useful to support the operations of the organisations. A management information by definition is a
planned system of collecting, sorting and distribution of data needed to perform the functions of management(MIS –
Introduction, n.d.).
A pension fund management information system is an automated tool that is used by organisations to manger,
organize and evaluate pension funds and information as regards this area. It focuses on providing an organisation
with a tool that will aid their day-to-day activity by providing them with a computer-based tool that will be fully
implemented to perform their specific tasks and functions.
 
                                                                                                              
1.2 PROBLEM STATEMENT.
Over the years the management of pension fund has been characterized by multiple and adverse problems which
arises from the manual method of managing funds and keeping track of a pensioners benefits.  This manual method
of pension fund management involves keeping records in a filing cabinet about each employee or pensioner that is
been registered with a pension fund administrator. Owing to the fact that humans are imperfect and are susceptible
to  errors, there is a great tendency that the administrator can make mistakes in filing a pensioner’s detail, the
administrator is prone to make mistakes in crediting a pensioner’s account, he can either under-credit or over-credit
an account thus leading to inconsistencies. The manual method of operation does not encourage transparency in the
operation of the administrator’s, because the pensioner is fully unaware of operations carried out on his or her
account. The ineffective nature of this method leads to financial impropriety, theft and fraudulent practices, human
errors, lack of clear and adequate information between the pension fund administrator and the beneficiary. In places
where the manual method has been replaced with some level of automation, there still exists the lack of inadequate
information on the side of the employee or pensioner to make decisions as regards the Pension Fund Administrator
to work with, as a result Pension Fund Administrators are forced on employees by their employers and thus when the
employees are not satisfied with the services of this organisations little can be done to resolve this issue.
 
1.3 AIM AND OBJECTIVES
The aim of the project is to design and implement an integrated platform for all pension fund administrators in
Nigeria,  automate the registration process involved for pensioners and a provide a means by which accounts and
funds can be effectively managed .
The objectives of this study are;
1. To implement an integrated web based application that enables pensioners to select their preferred PFA and
have easy access and up-to-date information on their account.
2. To automate the process of registration with PFAs using an electronic-form.
3. To provide a system that will enable creating, updating, deletion and retrieval, retention and storage of data.
4. Automate the pension fund management process through the use of Retirement Savings Account (RSA)
Calculator.
 
1.4 METHODOLOGY OVERVIEW.
The model that will be used in this project is the Waterfall model:
It is mandatory for some processes to be carried out before designing the system. The problem should first be
identified (problem identification).  Then a background study should be carried out to understand the existing system
and this comes up in the Literature review. Findings and inferences to review existing systems and better understand
the concept and functionality of the system.
In designing the system, we will achieve our objectives with use of the following tools:
1. The use of hypertext mark-up language and cascading style sheet languages to design a user friendly
interface. The cascading style sheet is for styling the look and feel of the web pages and the hypertext mark
language helps in creating and linking web pages, the Hypertext Pre processor is the backing code of the
project, which will link the web application with the database.
2. The database will be created with the use of my structured Query Language (MySQL) to develop an
organised collection of data. This database will be able to perform four major tasks, creating, retrieval,
updating and deletion of records.
 The use of mathematical functions to generate and calculate pension fund investments.
 
1.5 SIGNIFICANCE OF STUDY
The purpose of this study is to provide an improved method for an organization such as Pension Fund Administrator
(PFA) to efficiently manage pensioner’s records.
1. It would minimize the time required for pension fund management since it requires performing a large range
of activities.
2. It will aid easy manipulation of records such as updating pensioner’s account, creating new accounts,
preparing forms.
 Giving easy access to pensioner’s account balance and aiding faster claiming and payment of retirement
benefits.
 
1.6 SCOPE OF PROJECT
This system focuses on the design and implementation of a PFMIS which will be a web based application that
automates the pensioners’ registration process, provides an integrated platform for pensioners to select their
preferred PFA and create awareness for the pensioners on the generation of their pension funds.
This project focuses on developing and implementing a web-based pension fund management information system
that automates the pensioners’ registration process, an integrated platform for selecting preferred PFA will enable
storage, manipulation, retrieval, retention and viewing of records, documents of employee/pensioner’s information. 
This system will be beneficial to an organization such as a pension fund administrator in Nigeria.  This system is open
to all employees, employers, retirees from different sectors of life such as the public sector and private sectors and
will aid the easy retrieval, manipulation and computation of data, also putting in view the security of the pensioner and
employee. This system is limited to Nigeria.
 
1.7 EXPECTED CONTRIBUTIONS
The pension fund management system is designed to provide a solution to the problems encountered in the existing
systems of operations in a pension fund administration. A platform will be created where customers can use this
system from anywhere across all borders and hardware requirements. The system will also provide an integrated
platform where the employee can read about the existing pension fund administrators, their success rate and thus
from there decipher the most suitable pension fund administrator they would like to work with and allow to manage
their funds.
 
1.8 PROJECT MANAGEMENT
The project is organised as follows:
1. Chapter One: Introduces the project, its defining factors, problem statement, the scope and significance of
the project is determined.
2. Chapter Two: Literature Review; which discusses the factors to be considered in the development of this
system. An in-depth study of the pension system in Nigeria and the history of pension fund management
system.
 Chapter Three: System Analysis and Design; detailed analysis of the existing system and the problem
identification.
1. Chapter Four: Includes the implantation, testing and integration of the system.
2. Chapter Five: Includes the summary of the project, limitations, evaluations, conclusions and
recommendations.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
Pension is generally a way of catering for the need of the retiree. It is a form of income provided to workers after they
retire, become disabled or die. Pension is paid to those who are considered to be retired due to their deterioration in
their physical, mental, emotional and economic contribution to the society. The Longman Dictionary of Contemporary
English defines pension as an amount of money paid regularly by a government or company to someone who is
officially considered to be too old or too ill to earn money.  This fund is to provide the employees with a means of
securing upon retirement a standard of living that is consistent with that which they were enjoying while still in service.
Pensions helps a former employee to acclimate themselves back into the society upon retirement (Armstrong, 2010).
A retirement plan may be established by employers, the government, insurance companies or other institutions.
Pension and related issues (such as retirement planning) have received momentous consideration in many countries
in the past decades. Different countries have opted for different forms of contributory pension schemes (Robolino,
2006), in which employers and employees are demanded to pay certain percentages of their monthly earnings into a
Retirement Savings Account (RSA) from which they will be receiving their pension benefits from after retirement. The
money paid into a retirement savings account is known as pension fund. A pension fund also known as
superannuation in some countries is any plan or scheme which provides retirement benefits or income. The
management of these funds however requires a lot of care and attention.
The National Pension Commission (PenCom), which is the governing body in Nigeria comprises of the pension fund
administrators and pension custodians. It is the entity that deals with regulating, supervising and ensuring effective
administration of pension matters in Nigeria. The most important part of this system is the Pension Fund
Administrators has they manage the pension funds, maintain books of account on all transactions relating to the
pension funds, provide regular information to the employers and pay retirement benefits to pensioners. The influence
of the PFA is rather strong on the rest of the system.
A management system by the International Standard Organization is a set of interrelated or interacting elements that
organizations use to formulate policies and objectives and to establish the processes that are needed to ensure that
policies are followed and objectives are achieved. A system is defined as a combination of things or parts forming a
unitary whole.
A management information system is explained as an automated tool used by organisations to manage, evaluate and
organise departments. It’s simply involves the planning and administration of the organisations data to form
information useful to support the operations of the organisations. A management information by definition is a
planned system of collecting, sorting and distribution of data needed to perform the functions of management(MIS –
Introduction, n.d.).
A pension fund management information system is an automated tool that is used by organisations to manger,
organize and evaluate pension funds and information as regards this area. It focuses on providing an organisation
with a tool that will aid their day-to-day activity by providing them with a computer-based tool that will be fully
implemented to perform their specific tasks and functions.
 
                                                                                                              
1.2 PROBLEM STATEMENT.
Over the years the management of pension fund has been characterized by multiple and adverse problems which
arises from the manual method of managing funds and keeping track of a pensioners benefits.  This manual method
of pension fund management involves keeping records in a filing cabinet about each employee or pensioner that is
been registered with a pension fund administrator. Owing to the fact that humans are imperfect and are susceptible
to  errors, there is a great tendency that the administrator can make mistakes in filing a pensioner’s detail, the
administrator is prone to make mistakes in crediting a pensioner’s account, he can either under-credit or over-credit
an account thus leading to inconsistencies. The manual method of operation does not encourage transparency in the
operation of the administrator’s, because the pensioner is fully unaware of operations carried out on his or her
account. The ineffective nature of this method leads to financial impropriety, theft and fraudulent practices, human
errors, lack of clear and adequate information between the pension fund administrator and the beneficiary. In places
where the manual method has been replaced with some level of automation, there still exists the lack of inadequate
information on the side of the employee or pensioner to make decisions as regards the Pension Fund Administrator
to work with, as a result Pension Fund Administrators are forced on employees by their employers and thus when the
employees are not satisfied with the services of this organisations little can be done to resolve this issue.
 
1.3 AIM AND OBJECTIVES
The aim of the project is to design and implement an integrated platform for all pension fund administrators in
Nigeria,  automate the registration process involved for pensioners and a provide a means by which accounts and
funds can be effectively managed .
The objectives of this study are;
1. To implement an integrated web based application that enables pensioners to select their preferred PFA and
have easy access and up-to-date information on their account.
2. To automate the process of registration with PFAs using an electronic-form.
3. To provide a system that will enable creating, updating, deletion and retrieval, retention and storage of data.
4. Automate the pension fund management process through the use of Retirement Savings Account (RSA)
Calculator.
 
1.4 METHODOLOGY OVERVIEW.
The model that will be used in this project is the Waterfall model:
It is mandatory for some processes to be carried out before designing the system. The problem should first be
identified (problem identification).  Then a background study should be carried out to understand the existing system
and this comes up in the Literature review. Findings and inferences to review existing systems and better understand
the concept and functionality of the system.
In designing the system, we will achieve our objectives with use of the following tools:
1. The use of hypertext mark-up language and cascading style sheet languages to design a user friendly
interface. The cascading style sheet is for styling the look and feel of the web pages and the hypertext mark
language helps in creating and linking web pages, the Hypertext Pre processor is the backing code of the
project, which will link the web application with the database.
2. The database will be created with the use of my structured Query Language (MySQL) to develop an
organised collection of data. This database will be able to perform four major tasks, creating, retrieval,
updating and deletion of records.
 The use of mathematical functions to generate and calculate pension fund investments.
 
1.5 SIGNIFICANCE OF STUDY
The purpose of this study is to provide an improved method for an organization such as Pension Fund Administrator
(PFA) to efficiently manage pensioner’s records.
1. It would minimize the time required for pension fund management since it requires performing a large range
of activities.
2. It will aid easy manipulation of records such as updating pensioner’s account, creating new accounts,
preparing forms.
 Giving easy access to pensioner’s account balance and aiding faster claiming and payment of retirement
benefits.
 
1.6 SCOPE OF PROJECT
This system focuses on the design and implementation of a PFMIS which will be a web based application that
automates the pensioners’ registration process, provides an integrated platform for pensioners to select their
preferred PFA and create awareness for the pensioners on the generation of their pension funds.
This project focuses on developing and implementing a web-based pension fund management information system
that automates the pensioners’ registration process, an integrated platform for selecting preferred PFA will enable
storage, manipulation, retrieval, retention and viewing of records, documents of employee/pensioner’s information. 
This system will be beneficial to an organization such as a pension fund administrator in Nigeria.  This system is open
to all employees, employers, retirees from different sectors of life such as the public sector and private sectors and
will aid the easy retrieval, manipulation and computation of data, also putting in view the security of the pensioner and
employee. This system is limited to Nigeria.
 
1.7 EXPECTED CONTRIBUTIONS
The pension fund management system is designed to provide a solution to the problems encountered in the existing
systems of operations in a pension fund administration. A platform will be created where customers can use this
system from anywhere across all borders and hardware requirements. The system will also provide an integrated
platform where the employee can read about the existing pension fund administrators, their success rate and thus
from there decipher the most suitable pension fund administrator they would like to work with and allow to manage
their funds.
 
1.8 PROJECT MANAGEMENT
The project is organised as follows:
1. Chapter One: Introduces the project, its defining factors, problem statement, the scope and significance of
the project is determined.
2. Chapter Two: Literature Review; which discusses the factors to be considered in the development of this
system. An in-depth study of the pension system in Nigeria and the history of pension fund management
system.
 Chapter Three: System Analysis and Design; detailed analysis of the existing system and the problem
identification.
1. Chapter Four: Includes the implantation, testing and integration of the system.
2. Chapter Five: Includes the summary of the project, limitations, evaluations, conclusions and
recommendations.

TABLE OF CONTENT
Chapter One: Introduction
1.1 Background Of The Study
1.2 Statement Of The Problem
1.3   Aim And Objectives Of The Study
1.4              Research Questions
1.5     Significance Of Study
1.6     Scope Of The Study
1.7     Limitation Of The Study
1.9     Definition Of Terms
Chapter Two: Literature Review
2.1 Concepts And Meaning Of Pension Fund
2.2 Types Of Pension Fund Scheme
2.3 Objectives Of Pension Reform Act 2004
2.4 The Problems And Challenges Of Pension Fund In Nigeria
2.5 Contribution Of The Pension Fund Scheme
2.6 Benefits Of Pension Fund Schemes
2.7 Factors Affecting Pension Fund In Nigeria
2.8 The Role Of Financial Institution In Pension Management
2.9 Opportunities And Challenges For Financial Institutions On Pension Industry
2.10 Challenges And Prospects In Management Of Pension Fund In Nigeria
2.11 Summary Of Reviewed Literature
Chapter Three: Methodology And System Analysis
3.1 Methodology
3.2 Analysis Of Present System
3.2.2 Data Flow Diagram Of The Present System
3.3 Weakness Observed In The Present System
3.4 Expectations Of Present System
3.5 Proposed Hlm Of The New System
3.6 Advantages Of The New System
Chapter Four: System Design
4.1 Objective Of The New System
4.2 Description Of The New System
4.3 Main Menu (Control Centre)
4.4 Database Specification
4.5 Program Module Specification
4.6 Overall Data Flow Of The New System
4.7 Input/ Output Formats
4.8 Algorithms And Modules In The Control Centre System Flowchart
4.9 Choice Of Programming Language
Chapter Five: System Implementation
5.1Program Implementation
5.2Target Computer System Requirements
5.3 Program/System Test Run
5.4 System Maintenance
5.6 Program Documentation/ User Manual
5.7 Program Installation
5.8 Running The Program
5.9 Exiting The Program
5.10 Coversion strategies
5.11 Commisioning
Chapter Six: Summary, Conclusion And Recommendation
6.0 Summary
6.1 Conclusion
6.2 Recommendations
References
 
 
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Pension is an arrangement of providing people with an income when they are no
longer earning a regular income from employment. However, pensions should not
be confused with severance pay; the former is paid in regular installments, while
the latter is paid in one lump sum. The terms “retirement plan‟ or
“superannuation‟ refers to a pension granted upon retirement.
Retirement plans may be set up by employers, insurance companies, the
government or other institutions such as employer associations or trade unions.
Retirement pension is referred to as retirement plans in the United States, as
pension schemes in the United Kingdom and Ireland but in Nigeria, it is popularly
known to as pension. Retirement pensions are typically in the form of a
guaranteed life annuity, thus insuring against the risk of longevity. In general, the
common use of the term pension is to describe the payments a person receives
upon retirement, usually under pre-determined legal and/or contractual terms. A
recipient of a retirement pension is known as a pensioner or retiree. Pension fund
is any plan, fund, or scheme which provides retirement income.
  
The management (verification) of Pension Fund in Nigeria is as old as Nigeria
itself. Pension fund was introduced by the colonial masters to provide income and
security for old age British citizens working in Nigeria upon retirement as a post-
retirement benefit to employees. In the view of Adesina, (2006), Nigeria’s
legislative instrument on pension matters was the pension ordinance of 1951 which
had retrospective effect from 1st January, 1946. In 1961, National Provident fund
(NPF) scheme was established with the legislation to address pension matters in
private organizations.
 
1.2 Statement of the Problem
The manual method of pension fund verification maintains or keeps records in a
filing cabinet about each employee/pensioner that is registered with a Pension
Fund Administrator (PFA). When an employee decides to open an account with a
PFA for the purpose of retirement savings, the former (pensioner) has to go to the
physical location of the PFA to obtain and fill a registration form.
Upon returning the form, the PFA clerk opens a file for the employee where the
filled form and other vital documents as required or that relate to the employee
are stored. The file is then passed on to the next PFA personnel to verify the
employee’s registration which may take some days if not weeks as the case may
be.
Using the manual method, the employee is unaware of his/her account balance
except if he visits the PFA’s office. So, in case of financial impropriety in the
employee’s account, there is no way he/she can track this. In the manual method,
it is a bit cumbersome for the PFA to maintain an up-to-date record of
employees/pensioners. When an employee switches job or changes location
probably from one state to another, it takes time before these changes can be
effected in the employee’s record. All these manual processes have resulted in
problems such as:
·        Theft and fraudulent practices in the process of investing pension funds andthe
return on investments.
·        Human errors i.e. in crediting of a pensioner’s account.
·        Wastage of materials such as paper, files and so on.
·        Lack of adequate information flow among PFA personnels .i.e. PFA’s are unable
to give their customers clear information as to what their balance is and what is the
estimated amount of money they will be collecting if they retire.
·        The stress of pensioners having to go to PFA’s office.
 
A web-based pension fund verification system is a system designed to manage
pension activities both on the customer’s and Pension Fund Administrators (PFA)
ends. The pension verification activities on the part of PFAs include regular update
of customer’s information, crediting of customer’s account if the customer is
retired etc while customer’s activities include checking their balance online,
making enquiries by sending mails, etc.
1.3   Aim and Objectives of the Study
The aim of the study is to design and implement a computerized pension
verification system that will help to verify the information presented by the staff
and resolve the problems of the existing system.
Specific objectives of the study are:
·        To develop a secure system for staff information.
·        To help the pension personnel to attend to many staff without being over
worked
·        To design a pension verification system where teachers’ remittance can be made
on an agreed time interval.
·        To keep the records and reports of staff for easy retrieval with increased
data security.
·        To enable the reduction in the amount of resources. This in turn will lower
the cost of processing of teachers’ pension fund, since information will be
stored in a database with reduced data redundancy.
 

1.5            Research Questions
The design and implementation of a computerized teachers pension verification
system has been a controversial issue owing to its significance to pension sectors.
In view of this, the researcher intends to present the following questions:
1.     How significant is the computerized teachers’ pension verification system for
keeping the records and reports of staff for easy retrieval with increased data
security?
2.     How effective does computerized teachers’ pension verification system help
pension personnel to attend to many staff without being over worked?
3.     To what extent does pension verification system act where teachers’ remittance can
be made on an agreed time interval?
4.     Does the computerized teachers’ pension verification system enable the reduction
in the amount of resources which in turn lowers the cost of processing of staff
pension, since information will be stored in a database with reduced data
Redundancy?
5.     To what capacity does the computerized teachers’ pension verification
system help the school personnel to attend to many students without being
over worked?
 
 
1.5     Significance of Study
The project research having identified the problem that was existing in the old
system of operation, is designed specifically to come up with a more resound and
effective system that will not only counteract this problem but also provides a
detailed future plan that will give room for more information technological
improvement in the pension sector.
 
1.6     Scope of the Study
This research work is limited to providing a digital teachers’ pension verification
system that will handle electronically staff record, to enable easy accessibility and
information flow within the pension agency.
 
1.7     Limitation of the Study
This research work was limited to the researcher due to trespass and encroachment
in personal details.
There are some constraints encountered during the research making such as time,
stress, finance and material.
 
 
 
 1.9     Definition of Terms
·        Joint Tax Board:This is an approved body that monitors the activities of
private sector pension schemes.
·        Nigeria Social Insurance Trust Fund (NSITF):Provide and enhance
social protection to private sector employees.
·        National Pension Commission (PENCOM):Is an apex body of pension
industry in Nigeria that regulates and supervises the business of pension
companies.
·        National Insurance Commission (NAICOM):It is an independent body
responsible for licensing and regulating insurance companies in Nigeria.
·        Pension Reform ACT 2004 (PRA):This is the body under the Pension Reform
Act 2004 that regulates the activities of all pension matters.
·        Pension Fund Administrators (PFAs):They are Private Limited Liability
Companies licensed to manage pension funds under the Pension Act 2004.
·        Pension Fund Custodian (PFCs): They are banks license to hold the pension
fund assets on behalf of the PFA.
·        Retirement Savings Account (RSA):This is where the monthly contributions of
employees are kept for safe custody.
·        Security and Exchange Commission (SEC):These are managers under pension
scheme license to manage pension funds.

DESIGN AND IMPLEMENTATION OF COMPUTERIZED PENSION SCHEME

MANAGEMENT SYSTEM
(A CASE STUDY OF NIGERIA PENSION BOARD)
 ABSTRACT
          This work is aimed at developing a comprised system for quick and easy
processing of the staff pension. The need for such a work was very obvious .
          There is partly as a result of pensioners complain on the delay of payment of
pension. Age falsification and forgery of certain document contributed for the
computerization of system
          The new system is developed to handle applications in pension processing has
been tasked and certified workable.
 TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
STATEMENT OF THE PROBLEM
PURPOSE OF STUDY
SIGNIFICANCE OF THE STUDY
DELIMITATION OF THE STUDY
DEFINITION OF TERMS
CHAPTER TWO
LITERATURE REVIEW
 CHAPTER THREE
METHOD OF DATA COLLECTION
ORGANIZATION STRUCTURE
INPUT, PROCESS, OUTPUT ANALYSIS
INFORMATION FLOW DIAGRAM
OBJECTIVE OF THE EXISTING SYSTEM
PROBLEM OF THE EXISTING SYSTEM
JUSTIFICATION OF THE NEW SYSTEM.
CHAPTER FOUR
DESIGN OF THE NEW SYSTEM
OUTPUT SPECIFICATIONS AND DESIGN
INPUT SPECIFICATIONS AND DESIGN
FILE DESIGN
PROCEDURE CHART
SYSTEM FLOWCHART
SYSTEM REQUIREMENT
CHAPTER FIVE
IMPLEMENTATION
PROGRAM DESIGN
PROGRAM FLOWCHART
PSEUDOCODES.
CHAPTER ONE
INTRODUCTION
1.1    BACKGROUND
          The official written pension guideline by the federal military Government in 1979,
TITLE (PENSION DECREE NO 102) is know today as the only authority that guides the
payment of pension and gratuity. The difference between pension and gratuity is that
pension is based monthly payment while gratuity is paid at once and in bulk.
          Furthermore, pension can be seen as compensation (payment) to any retired
officer or civil servant. Also it can be seen as regular payment made by the state to
somebody old, to a disable or a widow.
          With the pension decree “NO 102      of 1979” a lot of changes here occurred in
most of the working sectors increasing the number of workers as well as productivity.
          Not only that civil servant here had the privilege of retirement at any time at any
age not exceeding 60 and not below 45 and yet is entitled for gratuity depend on the
rank, years of service and level.
          However, according to this decrease  there are a lot of government
establishment like hospital, institutions, industries, firms as well as forces that are
involve in the pension exercise.
          It is obvious that the pension decree “No 102 Part 1, No 1” it says “Subject to
those decree any person or gratuity granted. Have under to any person on retirement
form the public service of the federation shall be computed on the June pay or the
pension entitled there to end in accordance with the provision of schedule I to this
decree.” This is a clear description of the only and final authority over the payment of
pension.   
          However, there is some pension enactment that has being in existence before
thy were repaired and were replaced by this current decree. They are as follows:
pension Act…………………… cap 147 pension (increase) Act ………….Cap 1478 pension
(Returned and Transferred officers employed by statutory corporation)Act …………..cap
148 widows and orphans pension Act as ………………….cap 220 Amended by widow and
orphan pension decree 1960 No 19,1973 No 20.
Pension (special provision) Act 1961………………….1961 No 15
Pension (special Application) Act 1960……………….1960 No 36
Pension (special corporation services)Act 1961…….1961 No 61
Pension Act 1964                                                       1964 No 10
Pension (transferred services) Act 1965………..…….1965 No 28
Police (Pensions) Decree 1966……………………...….1966 No 74
Pension and Gratuities (war service) Decree 1969…1969 No 49
Pension (increase) Decree 1972………………………..1972 No 41
          Finally, although this project work is trying to concentrate on staff pension, yet
there are a lot of areas that pension are attached.
1.2     STATEMENT OF PROBLEM
          It was noted that there are problems, which the workers in the pension board do
encounter in the processing of the staff pension.
          According to the workers in the Nigeria pension Board NIGERIA, One of the
major problems involve is the presentation of the incomplete being required, the
processing could take place. But this problems is not what we are concerned with, since
it is the past of an individual involved to submit all the necessary requirement. Other
problems since there are a lot of document needed from an individual, then going
through all the documents seem to be a very since there are a lot of document needed
from an individual then going through all the documents seems to be a very tedious
exercise to the worker, problems of manual calculation of the pension due. Another is
inability to keep accurate record of an individual in this case, a lot of people normally
falsely their age, inability to maintain first serve due to the large quantity of files.
1.3     PURPOSE OF THE STUDY
          How do we then know and expose the capability of computer in problem
solving? Since computer is not a human being and operate on GIGO (Garage In,
Garbage out) what is given is what should be get.
          Therefore, it is the purpose of this study to conquer the above mentioned
problems existing in the processing of the staff pension of NIGERIA Pension Board
NIGERIA.
          It is expected that alter this study, accurate record of any individual involved can
always be maintained. Accurate pension due should always be given with the use for
computer instead of manual. The problem of maintaining first come, first serve should
be maneuver, and lastly age falsifying will become a past.
          Finally, it is our goal to computerized the processing activities of NIGERIA
PENSION BOARD, This will quicken the processing rate of pension system.
1.4     SIGNIFICANCE OF THE STUDY
          Viewing the processing activities of the payment of pension in Nigeria Staff
Pension Board, it is tedious an uncomfortable task to the  workers. Again, the
pensioners always complain of under pension and late payment.
          Therefore, this study will lessen the burden in processing of the pension, in the
sense that it will expose the fast rate at which computer works, it will allow the worker
to keep accurate record of an individual. Also, this study will introduce mediation
between the pensioners and worker whereby the pension earns will always be accurate
and should always be paid in time.   
1.5     DELIMITATION OF THE STUDY:-
          This study is limited to NIGERIA PENSION BOARD only but can also be use to
other pension board since there is only one rule that guild the processing pension.
Although, these study is based on NIGERIA PENSION BOARD. It does not cover all the
areas of pension. However, it is concentrated on the staff pension. It does not study
widow’s pension. Pension as a result of war disaster.
          Finally, this research work is basically for civil servant and Teachers.