THE DEFINED BENEFIT PENSION SCHEME AND RETIREES' FINANCIAL SECURITY: A STUDY OF THE UNIFIED LOCAL GOVERNMENT RETIREES, AKWA IBOM STATE, NIGERIA

This study examined retirees' financial security and the Defined Benefit Pension Scheme(DBPS) among the unified local government retirees in Akwa Ibom. The major objectives ofthe study were to examine the impact of the Defined Benefit Pension Scheme on the monthlyexpenditure and emergency needs of the unified local government retirees in Akwa IbomState. A survey research design was adopted by the researcher for the study. Fair AllocationTheory served as a framework. Study respondents were randomly selected among thetargeted population of retirees who retired between 1980 and 2020 and are collecting theirpension. A sample size of 546 study respondents was drawn by simple random samplingmethod to represent all 31 local government areas of Akwa Ibom State. Data were collectedthrough the Pension and Retirees' Welfare Assessment Tool (PARWAT). Data collected wereanalysed using Pearson Product Moment Correlation (r). The findings of the study revealedthat the Defined Benefit Pension Scheme (DBPS) and the monthly expenditure (MTE) of theunified local government retirees in Akwa Ibom State was highly positive and statisticallysignificant (r = 0.874, p < 0.001) which indicate that the pension paid determine the monthlyexpenditure of the retirees. The Defined Benefit Pension Scheme (DBPS) and the emergencyneeds of the unified local government retirees (EMN) of Akwa Ibom State was highly positiveand statistically significant at r = 0.876, p < 0.001. This indicated that the pension paid to theretirees determine their level and kinds of responses to their emergency needs. It wasdiscovered that the paid pension under the Defined Benefit Pension Scheme (DBPS) is notenough to give the retirees a sustainable welfare. The researcher recommended among othersthat the state government should harmonize pension in accordance to inflation to ensurefinancial security of the retirees.