Private sector leads in pension contributions, says PenOp

Chuks Udo Okonta

The Organised Private Sector (OPS) has taken over the lead in pension contributions from the public sector which has been at the fore-front since 2004 when the contributory scheme became operational.

The President Pension Fund Operators Association of Nigeria (PenOp) Dave Udeanu, who disclosed this in Lagos, said the organised private sector has performed tremendously well in recent time, as organisations in the sector are complying with the scheme by remitting their contributions promptly.

He said: "The organised private sector has done very well. Often time, we talk of the public sector, but we should give credit to the private sector, for most of them, treat pension as they treat salary. It is important to encourage them for they have turned out to be the strongest pillar or supporters of the scheme. The private sector has overtaken the public sector in terms of registration of contributors."

Udeanu also noted that as part of deepening the sector, pension operators and the National Pension Commission (PenCom) are working out ways of integrating the over 40 million workers in the informal sector into the scheme. He noted that the framework to that effect will soon be finalised.

He said PenCom will also before the end of the first quarter of this year, incorporate a multi-fund structure for Retirement Saving Accounts (RSA) funds, into the amended investment guidelines.

"The decision to introduce the multi-fund structure in the first quarter 2013, is to allow enough time for public education and sensitisation by the commission and also allow operators enough time to be ready to impliment the structure.

"The multi-fund would be primarily differentiated by their overall exposure to variable income instruments and a contributor's choice of funds may be limited based on the age of the contributor. Also the multi-fund structure would likely also allow for the introduction of a non - interest or ethical fund," he said.