CPS' ll provide secure pension for workers - PenCom

CPS’ll provide secure pension for workers – PenCom


by Mudiaga Affe

The Commissioner Inspectorate, National Pension Commission, Dr. Musa Ibrahim, has said that the contributory Pension Scheme was set up by the Federal Government to solve problems that emanated from old scheme.

Ibrahim, said this during a strategic meeting with managing directors and chief executive officers of licensed pension operators in Calabar, Cross River State.

He said, "There were problems relating to payment of pensions in Nigeria . There were also all sorts of allegations relating to fraud, misappropriation and non-payment of pension for many years in which people suffered.

"In 2004, the Federal Government was bold enough to say lets draw a line and stop this. Once you give money to people to distribute to other people, you have problems and that was why the Federal Government had to set up the contributory pension system where every worker will open his own retirement savings account and contributions from the employer and that of the worker will be paid on monthly basis."

According to him, the country’s pension fund will increase from its present N2.9tn to N3tn at the end of 2012.

Between 2004 and 2012, he added that the country’s pension fund had grown tremendously.

He said, "By the end of this year, Nigeria’s pension fund will increase to N3tn which can be compared to the Federal Government’s budget of N4.9tn."

Ibrahim also expressed the hope that in the next five years the pension scheme would build up funds that could surpass the federal budget, adding that the enormous resources being gathered was not only to cater for retirement benefits of pensioners but also to boost the real sector of the economy.

In his remarks, the Director-General, PENCOM, Mr. M. K Ahmed, said the strategic meeting between the commission and heads of licensed pension operators became necessary in order to take stock of what the contributory pension scheme had achieved over its eight years of implementation.

He said that the forum was coming on the heels of the recent recapitalisation by pension fund administrators as well as the public hearing on the administration of pensions by the National Assembly joint committee.

Ahmed added, "The retreat is also aimed at generating enhanced understanding of the industry, prioritise the issues affecting the industry and provide workable sustainable solutions to the challenges."

He also stressed the need for the commission and pension operators to map out strategies for the successful implementation of some ongoing projects, including efforts to amend the Pension Reform Act of 2004.

Source Punch