This study critically examined some of the justification for the contributory pension scheme as part of its values and determined their implications for public servants productivity and pensioners welfare in Lagos State. The methodology employed to achieve these objectives was carried out through primary source of information and personal interview. The primary source involved field survey that consists of administering questionnaire. The sample size is one hundred and twenty respondents (120). Simple random sampling method was used in administering the questionnaire. The data collected was analyzed statistically in form of tabular presentation with the aid of Statistical Package for Social Sciences (SPSS) version 21. Two hypotheses were tested. The result of the analyses reveals that there is significant relationship between adequate retirement package and employees’ productivity and that it has a positive impact on the organization efficiency. Both empirical study and oral interview conducted however, found that the contributory pension scheme (CPS) has positive potentials over the defined benefits pension scheme (DBPS). Therefore, in other to enhance the workability and acceptance of the contributory pension scheme, it was recommended that stakeholders should be involved in the review of the scheme so as to streamline it and to adequately supervise operators’ clients’ sensitization programmes. Also, dissemination of appropriate information on the new pension scheme should be a continuous exercise. Thus, other States within Nigeria and some African countries can benefit from Nigeria's experience.
Key words: Contributory pension scheme, employees, retirees, pension, productivity.
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