AN EVALUATION OF THE ACCOUNTING SYSTEMS AND CONTROL OF PENSION FUNDS IN ABIA STATE

Abstract

This research work highlights the evaluation of the accounting systems and control of pension fund with Abia State Government in focus. This study is motivated by the inadequacy in the collection of pension fund by the pensioners with Abia state Government. The problem is defined by the inadequacy in the provision of pension to past and resent employees, treatment of actuarial gains and losers. The objective of the study was to identify various ways by which accounting system control pension funds and to identify the effectiveness of control measures on the pensions. Four research questions were raised for the study and foure hypotheses were formulated. The survey research design was adopted for the study with a sample of 60. Questionnaire was the main instrument used for data collection. The data collected was subjected to simple validity and reliability tests. The analysis of the data was based on statistical frequency tables, and chi square (x-2) technique was used to test the level of significance. Some of the findings are that accountant through the use of actuarial method determine the specific amount of funding pension cost and that pension benefit are payable many years later when the employees retire one after the other, the total cash paid in the service credits (funding) is significantly made for pension benefits and also that the standard of living of pensioners can be raised through the use of accounting system and control. Based on the findings, recommendation such as providing other benefit to the workers on retirement, acknowledgment of the importance of the money to the retired workers, special programme should be designed solely for retired workers to urgument the delayed money paid.