Saturday, 12 April 2014

How to make contributory pension scheme robust – Expert


Chuks Udo Okonta

The Group Managing Director Pensionscope and pension consultant Mr Peter Tai Adediji, has called on governments at state and local governments to embrace and join forces with the federal and private sector to make the Compulsory Pension Scheme (CPS) robust and meet set objectives.

Adediji in a paper entitled: Contributory Pension Scheme in the public service: Challenges and Benefits and presented at the Annual Public Lecture of the Chartered Institute of Personnel Management of Nigeria (Ondo State branch) in Akure, Ondo State, noted that for the pension scheme to succeed efforts should be made in tackling issues such as misconception  and apprehensions about the scheme; compliance and enforcement; extending the coverage to the informal sector and self employed; sensitisation challenge and general knowledge gap.

He said the sector also needs quality personnel to bridge the general knowledge gap and that there should be coordinated efforts in combating inflation to ensure positive real return on savings.

Adediji also suggested that there should be more investment channels and that measures should be in place to take care of post retirement risk factors.

He said the contributory pension scheme is worth not only giving a trial, but should be embraced like a beautiful bride.

He noted that the scheme is notable because it provides earning at retirement; retain emotional and psychological balance; helps cultivate saving culture; increase life expectancy; helps reduce corruption and provides means to meet essentials at retirement.

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