The pension scheme prior to reform was characterized by inadequate funding, remittance and delay in paying retirees their benefits. These and other related problems led to the introduction of the pension reform Act 2004 with the sole aim of addressing some of these problems. This study evaluates Perception of University Employees on the Impact of Contributory Pension Scheme on Employees' Welfare. The techniques employed for the purpose of this study were Pearson correlation coefficient and Chi-square. Statistical analysis results showed that the new pension scheme gives the Employees the choice as to how their pension funds are managed and gives them the assurance about the security of their retirement benefits. Using a panel of data that included both primary and secondary sources, the findings of the study showed that the new pension scheme had a very significant impact on the welfare of University Employees. The study revealed that there was a significant relationship (r = 0.906) between pension benefits paid and the accumulated deductions by Pension Fund Administrators (PFAs). The result of the analysis also revealed that there was no significant relationship between awareness of new pension scheme and the welfare of Employees of federal universities in Nigeria. In line with the findings of the study, it is concluded that the employees had very low perception of their universities' organizational retirement plan. The study recommended that the PFAs should channel more efforts in trying to raise the level of awareness of employees and retirees so as to enhance their welfare.