EFFECT OF THE CONTRIBUTORY PENSION SCHEME ON EMPLOYEE COMMITMENT IN FEDERAL UNIVERSITIES IN NORTH-CENTRAL NIGERIA

Abstract: This study examined the effect of the Contributory Pension Scheme (CPS) on employee commitment in selected federal universities in North-Central Nigeria. Specifically, it assessed the effects of Retirement Savings Account, joint contributions, pension fund administration, portability of Retirement Savings Account, regular remittance of contributions, and pension fund transparency on employee commitment. A descriptive cross-sectional survey research design was adopted. The population comprised 6,158 academic staff from seven selected federal universities, from which a sample of 376 respondents was determined using the Yamane formula. A structured questionnaire was used for data collection, and 369 valid responses were obtained, representing a response rate of 98.1%. Data were analysed using descriptive statistics and multiple regression analysis with SPSS version 27 at a 5% level of significance. The results showed that Retirement Savings Account (β = −0.095, p = .077), joint contributions (β = −0.044, p = .146), and pension fund administration (β = −0.041, p = .309) had negative but statistically insignificant effects on employee commitment. In contrast, portability of Retirement Savings Account (β = 0.210, p < .001), regular remittance of contributions (β = 0.252, p < .001), and pension fund transparency (β = 0.710, p < .001) had positive and statistically significant effects. The model explained 97.8% of the variation in employee commitment (R² = .978). The study concluded that the influence of the Contributory Pension Scheme on employee commitment varies across its components, with pension fund transparency emerging as the strongest predictor. It recommended that pension administrators strengthen transparency, ensure timely remittance of contributions, and simplify pension account portability to enhance employee confidence and commitment in federal universities.