Pension scam validates contributory scheme - PenCom

Chuks Udo Okonta

The National Pension Commission (PenCom) has said the scam that rocked the old pension system has validated the need for the public to embrace the contributory scheme which gives no room for fraud.

A source in PenCom said the pension scam has helped the commission to advanced the crusade on the need for the public to believe and abide with the contributory scheme which was designed due to the irregularities observed in the old scheme.

The source said the commission in collaboration with the Pension operators and other stakeholders are working hard to ensure safety of funds contributed by subscribers in the new scheme.

The person expressed misgivings over the low numbers of subscribers in the new scheme, adding that it is still a far cry as there are about 40 million workers in the country.

The source maintained that the commission is working hard to integrate employers in the informal sector into the scheme, stressing that getting small business operators to embrace the scheme, inadequate education and enlightenment remain a great challenge to the industry's growth.

It was learnt that to encourage more people to embrace the scheme, the commission hopes to introduce customers service index, which would ensure that customers get better services from PenCom and operators.

PenCom said it has continued with its regulatory and supervisory philosophy, which is risk-based and consultative, adding that the Retirement Savings Account (RSA) transfer clearing system application that would be used to coordinate the processes relating to the transfer of retirement savings accounts is being developed and tested to ensure that it meets the capacity and robustness required.