Chuks Udo Okonta
Experts said there was the need for serious sensitisation exercise to enlighten Nigerians on the importance of the new pension scheme, which they said, will increase its level of adoption in the country.
The experts, who gave the call at the 2014 Insurance and Pension Awards organised by Inspenonline, an online news medium, in Ikeja, Lagos, said most Nigerians are still ignorant about the Contributory Pension Scheme (CPS), saying, misconception still exist between the old pension scheme and CPS.
The Compliance Officer, Stanbic IBTC Pension, Idu Okwuosa, attributed the low level of adoption by employers of labour, to failure of employees to demand their pension rights.
She stated that some phony employers do deduct the stipulated 7.5 per cent from their employees’ salaries, yet they fail to add their own contributions and remit them to the concerned Pension Fund Administrators (PFAs).
Okwuosa, who represented the Chairman, Pension Fund Operators Association of Nigeria (PenOp), Mr. Misbahu Yola, added that "Employers are more responsible for pension default in the country from our own findings."
According to her, “If your employers are not paying your pension, the employees being the whistle-blower, must notify the National Pension Commission (PenCom). Some are even deducting it from workers' salary without remitting, which is fraudulent.”
She appealed to Retirement Savings Account (RSA) holders to lodge complaint to either PenCom or PenOp, if unfairly treated. She equally charged employers to cooperate more with pension operators to ensure that, not only are they registering their employees under the new pension scheme, but that pension allowance deducted from workers salaries are remitted to the concerned PFAs as at when due.
Moreover, she cautioned insurance agents to stop de-marketing PFAs on withdrawal options, saying, most insurance companies are going crazy in a bid to sell Annuity option to retirees, thereby, discrediting and misinforming the people about Programme Withdrawal option.
Stating that the 2014 amended pension scheme is going through a few amendment she said when such amendment is fully realised, it would expand the frontier of pension operators to penetrate and mobilise more fund, especially from the informal sector, into the scheme.
On the other hand, the Managing Director, Lancelot Ventures Limited, Mr. Adebayo Adeleke said education is key to realising the aims and objectives of the new pension scheme, saying there is need for enlightenment in churches, mosques, schools, and so on to capture more subscribers.
"Education on pension scheme is key to realising its aims and objectives. There is the need for enlightenment in churches, mosques, schools, and so on, so that people, who converge at these places, but work in different offices, can mount pressure on their employers for inclusion in the CPS."
Speaking on investment options of pension assets, the Head, Benefit &Insurance, PenCom, Lana Loyinmi, said, before pension fund is invested, operators will have to ensure that there is fairness and integrity, so that such investment don't go down the drain.
He however said the current regulation does not allow pension fund to be invested in real estate because the theme of fairness and integrity that might be absent.
"The regulation does not give room for investment in real estate because fairness and integrity might be absent. Pension fund can, however, be invested in bond, so that its proceeds are reinvested into the economy," he posited.
However, the President, Association of Registered Insurance Agents of Nigeria (ARIAN), Gbadebo Olameru, said retirees are having challenges choosing between the two existing withdrawal options, which are; Annuity and Programme Withdrawal.
Saying operators must sensitise people in that area, without necessarily de-marketing one another, he said, most people do not know how to access their pension accounts after retirement.
“Retirees have difficulties choosing either Annuity or Programme Withdrawal. Prompt information on how retiree can gain access to his fund is still lacking, while some are still having problem distinguishing between the new pension scheme and the old scheme,” Olameru said.
Calling for collaboration between PenCom, PenOp and respective pension fund firms across the federation, to increase the level of pension awareness, he noted that such commitment will not only increase the adoption rate, but will also mobilise some money into the N3.8 trillion pension assets for economic and investment impacts.
No comments:
Post a Comment