By Chris Agabi, Lagos Hits: 151
All workers in Nigeria who desire a secured future after retirement should have a retirement savings account (RSA) with a licensed pension fund administrator (PFA), PenOp has said.
PenOp thus wants all employers of labour, both in public and private sector, to support their staff to open an RSA with any PFA of their choice so they can benefit when they retire.
The Executive Secretary, Pension Funds Operators Association of Nigeria (PenOp), Susan Oranye, made the call yesterday during the Workers’ Day celebrations held in Lagos.
As at February, the pension assets stood at about N4trn from about 5.9m contributors from the 20 Pension Fund Administrators operating in Nigeria.
Under the contributory pension scheme, employers deduct 7.5 per cent of individual workers monthly salary and contribute at least the same amount which is credited into the workers’ Retirement Savings Account in any of the PFAs chosen by individual workers. The PFA manages the accumulated funds, which is under the custody of the PFC chosen by the PFA.
Oranye also told workers that their funds are secured with an RSA account as no one would be able to pilfer the funds online. The pension asset under the contributory scheme is projected to peak at about N4.3trn by end of December 2014 from a projected 6.2m contributors.
The growth rate of industry contributions nationwide is about $2bn annually which is over N300bn apart from market returns.
Source Daily Trust
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