This project is divided into different stages for ease of reference and simplification for analysis which goes as follows: The introduction of pension and gratuity, the background of the study which states the provision of pension and gratuity to retired civil servants in Enugu State by government though taxation. But in the private sector, premium has to set aside in separate fund known as funding for the purpose. Statement of the problem which states the different problems that through about pension and gratuity which are the inability for the retirees to lacks training and understanding on the qualification and entitlement of pension and gratuity, highly poor of regardless of pension and gratuity to government, inability to know the meaning and need of pension and gratuity. Purpose of the study, which state the needs to enlighten the public on the processes involved which prevent some civil servant from enjoying their pension and gratuity before they die. It also let the retired civil servants to know when their suppose to receive their pension and gratuity, finally the processes and ways involved in their payments.



1.1  Background of the Study                                          2

1.2  Statement of the Problem                                 4

1.3  Objectives of the Study                                    5

1.4  Research Question

1.5  Scope and Limitation of the Study                     5

1.6  Definition of the Terms                                     7


2.1  Review of Related Literatures an Overview

2.2  Statutory Age of Retirement                              12

2.3  Notices of Retirement                                       12

2.4  Conditions for Granting Retirement

2.5  Qualifying Servant for Pension and Gratuity         13

2.6  Death Gratuity                                                14

2.7  Pension/Gratuity Where an Officer Killed in

Course of the Study                                                16

2.8  Method of Calculating Pension                           18

Reference                                                       21



RESEARCH METHODOLOGY                                      22

3.1  Sources of Data                                              22

3.1.1 Primary Data

3.1.2 Secondary Data

3.2  Population of the Study                                    23

3.3  Sample Size                                                    24

3.4  Validity and Reliability of the Instrument                    22




4.1  Summary of Findings

4.2  Discussion of the Findings




5.1  Conclusion                                                      39

5.2  Recommendations                                            42

Bibliography                                                    45

Appendix I                                                      49

Appendix II                                                     49





The civil servant having put all his life in civil service would naturally expect to be rewarded. This immediate return is by ways of salaries and wages, while his long time rewards are by the pension and gratuity. Although one day he would be rewarded by ways of pension and gratuity also services a security.


Pension and gratuity are welfare packages for retire civil servant. It is the sum of money paid regularly to a pension who can no longer work because of age or disablement or to the widow or dependent children by the state. By his former employer o r funds to which he and his employer have both contributed after retirement, pension is expected to be paid monthly to the retired for the computation of his benefits is based on how long one has put into service and the rank at which one is retiring.


The graduation pension percentage range is from 30% of ones annual income which is computed and paid per-annum. The sum total obtained is now divided by twelve and it is this stipulated that is expected to sustain the retiree for the rest of his life.


In this private sectors of the economy however pension is still regarded as a suspect work in much the same way as during the medieval ages. Pension and gratuity makes provision for retired civil servant and is financed by government through taxation. But is the private sector premium has to be set aside in separate fund known as funds for the purpose.


This type of pension and gratuity arrangement is know as final salary scheme that is provided adequate pension and gratuity which takes into consideration earning at the time of retirement. Therefore, there are a lot of advantage in placing a lump sum at the disposal of the retiree especially if there are some immediate bills to be settled shortly after retirement.


To ensure the timely efficient and effective payment of pension, gratuity and other benefits to eligible employees of the public service for them to enjoy a dignified and secure livelihood when they leave the service.


Timely efficient and effective compensation for past service of public service, the pensions department operate under the ministry of finance and administers the government public pension policy.



The major problem of this project study the procedures and ways of payment of pension and gratuity to retired civil servants are as follows.

  • Most pensioners lacks training and understanding on the qualification and entitlement of pension and gratuity.
  • The limited resources can not provide adequate finance to see to great development of pension and gratuity.
  • The private sectors do not regard pensioners as anything.
  • The regardless of pensioners and gratuity to the government is highly poor.
  • The meaning and need of pension and gratuity are not strongly introduced to the people.



  • To know how payment are been made to the retired civil servants.
  • To know how their employers are been handled pension scheme.
  • To know the processes and ways the civil servants pass through when they retired.
  • To find out what the civil servant are entitled on retirement.



  1. Of what length of service and time does an employee put in an establishment to give him/her necessary qualification to draw pension and gratuity?
  2. Is it a must that every retiree employee will be entitled pension and gratuity?
  3. How is pension and gratuity financed?
  4. Is it only when retired that they can receive their pension and gratuity?



  1. It helps to prepare the mind of civil servant on the necessary and sufficient condition they must possess to be qualified for receiving pension and gratuity?
  2. It will help student might wish to carry furher research work or related topic.
  3. It gives explanation on the processes and ways the civil servant must undergo before they can finally get their pension and gratuity.
  4. It also explains the kind of service or employment that are pensionable.
  5. It will help the civil servant to know the processes and ways involved in payment of pension and gratuity.



This study is meant to cover the procedures and ways of payment of pension and gratuity to retired civil servants in Enugu state. However, data of this study were collected from Enugu state only due to financial and time factors. This research therefore concentrate on, in Enugu state. It was noted that there were some of pensioners in Enugu state. It is assumed that from the pattern of development of pension and gratuity in Enugu state more than half of Enugu state will adequately provide information on the characteristic of the total population. It helps to provide quicker results than does the use of the whole population.



  1. Pension – is a sum of money paid regularly by Government to people above a certain age and to widowed or disable people by former employers or financial institutions. It is also an amount of money paid regularly by a Government or Company to somebody who is considered to be too old and have served them.
  2. Gratuity – is money that you give to somebody who has provided a service for you or money that is given to employees when they leave their job.
  3. Length of Service – This is the period an officer or employees last in an organization starting from the beginning of his/her appointment to the end or his/her retirement.
  4. Office – This is a pension who is in position of authority, especially in the Government or a large organization.
  5. Next of Kin – This means your closest living relative or those persons whose name are furnished by the deceased or retired officer on his/her records of service kept in the central record office.
  6. Retirement- Means to stop your job because you have reached a particular age, the time when you do this is at 60 years of age or when you are very ill/sick to work.
  7. Withdrawal – The act of no longer taking part in something or being a member of an organization.
  8. Commission – This is an amount of money that is paid to somebody for selling goods and which increases with the amount of goods that are sold.
  9. Wages – are the reward concerned with labour concerned with labour cost per unit of output, while salary is defined as fixed regular, usually monthly payment to employees.
  10. Performance Appraisal – is the most formal way of evaluating an individual with regard to his contribution on a particular job.
  11. Fringe Benefit – Fringe benefits can come in the form of sick pay or leave pay.