ACCOUNTING FOR PENSIONS AND GRATUITY
(A CASE STUDY OF ANAMBRA STATE)
ABSTRACT
A research work into Accounting for pensions and Gratuity (A case study of Anambra State) cannot be over – emphasized.
In pursuance of this investigation the research used both primary source of data collection, like Questionnaire as well as secondary sources such as text books, Journals, Articles, etc. The data collections were the analysis using are Agree, Strongly Agree, Disagree, Strongly Disagree.
Effect was made in this research work to investigate on the constraints encountered in the imposition of pension and gratuity and also recommendation were given the way of overcoming them.
This study is obvious if we should realize that this work will enable to know the number of pensioner in Anambra State and in the Nigeria in general.
The project is divide into five chapters in which the first chapter deals with the introduction part, statement of problem, objective of the study, significant of  the study, research question, research hypothesis, scope of the study, limitation of the study and definition of terms.
Chapter two deals with review of related literature as related to Accounting Pensions and Gratuity of origin of pension and gratuity objective of pension and gratuity scheme, method of Accounting pension and Gratuity, Qualification for the Award of pension and Gratuity.
Chapter three deals with research design and methodology, used primary, secondary source of data analysis, population and sampling procedures.
In chapter four was discussed define presentation and analysis and testing of hypothesis.
Chapter five finally deals with findings, conclusion and recommendation.
 TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1     Background of the study                                            
1.2     Statement of the problem                        
1.3     Objectives of the study                                               
1.4     Research Question                                            
1.5     Research Hypothesis                                        
1.6     Scope of the study                                                       
1.7     Significance of the study                                                      
1.8     Limitation of the study                                                        
1.9     Definition of terms                                                     
          References                                                                   
CHAPTER TWO: LITERATURE REVIEW
2.1     Origin of Pensions and Gratuity                               
2.2     Objectives of pension and gratuity scheme                       
2.3     Method of Accounting for pension and gratuity               
2.4     Qualification for the Award of pensions and gratuity     
          Reference                                                                               
 CHAPTER THREE: RESEARCH DESIGN AND
METHODOLOGY
3.1     Research Design                                                                   
3.2     Area of the study                                                                  
3.3     Population of the study                                                       
3.4     Sources of Data                                                           
3.5     Sampling method                                                                 
3.6     Instrument for data Collection                                  
3.7     Validity and Reliability of Research Instruments   
3.8     Method of Investigation                                             
          Reference                                                                               
CHAPTER FOUR: DATA PRESENTATION
4.1     Types of pension in Nigeria                                                
4.2     Problems of pension Accounting in Nigeria                     
4.3     Solution to the problems of pension Accounting               
          Reference                                                                               
CHAPTER FIVE: SUMMARY OF FINDINGS CONCLUSION
AND RECOMMENDATIONS.
5.1     Findings                                                                      
5.2     Conclusion                                                                                      
5.3     Recommendation                                                                 
          Reference                                                                               
          Bibliography                                                                        
          Questionnaire                                                                       
Appendix                                                                    
CHAPTER ONE
INTRODUCTION
1.1     BACKGROUND OF THE STUDY
          The management and accounting control of the public, such as pensions and gratuity is the heart of governmental administration. This research work describes and explains the statutory administrative and accounting authorities set up to control the public purse such as pensions and gratuity accounting.
In doing so, the extent of powers of each financial pension division of department of establishment and that of the auditor general are delineated. This is followed by an examination of the principles and practiced of the various forms in which the pensions are kept. A major characteristic of governmental account that is pension and gratuity accounting is brought out for focus in process.  Then the accounting aspects of pension and gratuity in relation to the statutory accounting are developed.
          Government business, whether in term of policies, programmes, activities an injunction is run in accordance with the laid down formalities. The formalities become more rigorous especially in relation to the accounting and reporting for the collection and use of government funds which support the process of governance. The legal formalities in the area of pension and gratuity accounting and financial control, including laws, rules, regulations, circulars and memorandum. The operation of these depends largely in the disposition of executive, the judiciary and the legislatives. The bureaucracy, bottlenecks and concomitant evils associated with the civil service is always x-Ray in these areas.
The pensions, and Establishment division of the cabinet office, Anambra State is one of the arms of the government, put in place to achieve some specific objectives. It is made up of six sections namely:-
i.       Teachers’ section.
ii.      Reimbursement service section
iii.     Civil service section
iv.     Reconciliation section
v.      Pension Registry and
vi.     Condonation section with the state audit department as an indeendent body that examines the work of the pension division.
1.2     STATEMENT OF PROBLEM
          Insufer this topic, Accounting for pension and Gratuity is concerned, it had remained a problem.
Because high percentage of accountants in Anambra state know little or nothing about accounting for pension and gratuity. The small percentage that seem to have the knowledge are those who were involved in pensions and gratuity work in both federal and state establishments and very few indeed.
          Therefore, it is the wish of the researcher to overcome the ling-felt need for a knowledge in accounting for pensions and gratuity bearing in mind that all public workers in the state civil service to aim at earning pension and gratuity at the end of heir service period.
1.3     OBJECTIVE OF THE STUDY
          The objective of this study research work is to ascertain the contributions of the pension accountants in the payment of pension and gratuity in Anambra state and the constraints facing them.
          To review areas of discrepancies in accounting for pension and gratuity in Anambra state.
          To identify the standard system of accounting for pension and gratuity.
1.4     RESEARCH QUESTION
          Does poor accounting system contribute to the delay in payment of pension and gratuity in Anambra State?
          To what extent does lack of experience pensions accountants affect accounting for pension and gratuity in Anambra state.
          To what extent does lack of standard accounting system for pension and gratuity affect the accounting for pensions and gratuity in Anambra state.
1.5     RESEARCH HYPOTHESIS
H1:   poor accounting delays in the payment of pension and gratuity in Anambra state.
H2:   lack of competence pension accountants affects accounting for pension and gratuity in Anambra state.
H3:   lack of standard accounting system for pension and gratuity affect accounting for pension and gratuity in Anambra state.
1.6     SCOPE OF THE STUDY
          This work will cover the period from 2002 to 2009. The study therefore, focuses on the payment of pensions and gratuity which the researcher deemed necessary to restrict within Anambra state principally within the period under reference.
1.7     SIGNIFICANCE OF THE STUDY
          This research work when completed will give an in-depth study  of Accounting for pension and gratuity in Anambra state, and the researcher must have achieve her aim of adopting a more regular and systematic method of accounting for pensions and gratuity in the state.
          It is also expected to help suggest ways of improving the present deplorable conditions of the retires in the state through its findings and recommendations.
1.9            DEFINITION OF TERMS:
i        PENSION: It is a periodic payment or allowance to an Individual or to his family, given because of some meritorious work or when certain conditions such as age, length of service, etc, have been fulfilled.
ii       GRATUITY: This refers to the bulk sum of money receive-able by a retiring office who has put in an estimated period of time.
iii      REIMBURSEMENT: Payment to a pension who has expected money out- of-pocket.
iv      CONDONATION/MERGER OF SERVICE: This is the over looking of some irregularity in one’s service rendered by an office to avoid a break-in-service and his service by considered as straight forward services and to qualify for pension and gratuity.
V       PENSION AGE: It is the age at which pension and gratuity can be circulated for and officer and this has now been reduced from 15 to 10 years according to 1992 pension and gratuity reform.
Vi      LENGTH OF SERVICES: This is the period an officer entered the public service up until the date prior to his retirement. In this connection, the preceding not-service as a minor”, should be taken into consideration.
Vii   APPOINTMENT: This may be seen as the sharing the retiring benefits between various government s and statutory bodies according to service rendered to each.