CHAPTER ONE
INTRODUCTION
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 definedas 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.
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.
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;
- 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.
- To automate the process of registration
with PFAs using an electronic-form.
- To provide a system that will enable
creating, updating, deletion and retrieval, retention and storage of data.
- Automate the pension fund management process through the use of Retirement Savings Account (RSA) Calculator.
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:
i.
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
webpages and the hypertext mark language helps in creating and linking web pages,
the Hypertext Preprocessor is the backing code of the project, which will link
the web application with the database.
ii.
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.
iii.
The use of mathematical functions to generate and calculate pension
fund investments.
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.
i.
It would minimise the time required for pension fund management since
it requires performing a large range of activities.
ii.
It will aid easy manipulation of records such as updating pensioner’s
account, creating new accounts, preparing forms.
iii.
Giving easy access to pensioner’s account balance and aiding faster
claiming and payment of retirement benefits.
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.
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.
The project is organised as follows:
i.
Chapter One: Introduces the project, its defining factors, problem
statement, the scope and significance of the project is determined.
ii.
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.
iii.
Chapter Three: System Analysis and Design; detailed analysis of the
existing system and the problem identification.
iv.
Chapter Four: Includes the implantation, testing and integration of
the system.
v.
Chapter Five: Includes the summary of the project, limitations,
evaluations, conclusions and recommendations.
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Item Type: Project Material | Attribute: 100 pages | Chapters: 1-5
Format: MS Word | Price: N3,000 | Delivery: Within 30Mins.
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