Welfare: From July 1994 until June 2004, private-sector employers and their workers were required to contribute to the Nigeria Social Insurance Trust Fund, which supported a defined benefit pension. The total contribution was 10 percent of an individual’s wages: 6.5 percent from the employer and 3.5 percent from the employee. A separate pay-as-you-go plan, which suffered from poor administration, inadequate funding, and fraud, covered public-sector employees. Beginning on June 25, 2004, a new social insurance system based on the defined contribution approach replaced the prior arrangements in accordance with the Pension Reform Act of 2004. Under the new system, which is managed by the National Pension Commission, members of the military contribute 2.5 percent of their wages, and the military contributes 12.5 percent on their behalf, while public- and private-sector workers and their employers each contribute 7.5 percent.