The Task Environment of Pension-Odunze Reginald

The task environment of pension looked at those basic elements that affect and influence the business of pensions in any environment. These factors are as follows:

Competitors

Customers

Regulators

Unions.

These four factors affect business of and they are regarded as the task environment .Onuoha (1994:142) and relating it to pension , it becomes the task of environment of pension.

Competition

The pension business is a competitive one, there about 24 pension administrators and about 4 pension custodians. These organizations are in the same business, a homogenous business; they compete in generation of Retirement Savings Account. What may keep them in business will be the quality and quantity of return on investment. There are insurance companies competing seriously with PFAS in the area of Annuity.

Customers

In his book “How to win customers and keep them for life” Leboeuf noted that” in today’ s service oriented economy excellent service more than a competitive weapon-it’s a survival skill. And those institutions without it run the risk of going the way of steam locomotive, the horse and buggy and the slide rule” continuing he stated that “they alone make it possible for you to earn your livelihood in the way that you do, treat them well and satisfied customers will be your best source of advertising and marketing” And according to the former Managing Director of Xerox, Hitchman, he stated that people are no longer stressing themselves but in building an enduring relationship. But when customers are not attended promptly, they tend to feel dissatisfies and unhappy.

Customers are becoming increasingly aware of their needs, desires, wants and their expectations from Pension Fund Administrators. They compare the services rendered with co workers, their return on investments, these has been on the low ebb as the transfer window is not yet opened.  These service expectations include the following:

Accessing of benefit within the shortest possible time, 

Good and adequate return on investment

Prompt delivery of Retirement Savings Account statements

Being attended to within few minutes.

Regulators

“Regulators are units in the task environment that has the potential to actively control, regulate or influence organizations policies and practices” Onuoha (1994:144)

There are two main regulators, government agencies and interest groups in the pensions industry, the major regulator is the National Pension Commission PenCOM, Central Bank of Nigeria, and the Security and Exchange commission SEC in the area of Investments.

Union : Union include the Nigeria Union of Pensioners NUP, The Nigeria Labour Congress, Trade Union Congress, Nigeria Employers Consultative Association NECA,

These unions have large followers and heavily organized, and can definitely mobilize for or against Pension Fund Administrators.