Tuesday, 17 March 2015

PenCom eyes special registration for informal sector contributors

Chuks Udo Okonta 

The National Pension Commission (PenCom) has said it would put in place special registration process to ease the stress associated with registration and participation for targeted workers in the informal sector.

Head, Research and Corporate Strategy Department PenCom, Dr. Farouk Aminu, disclosed this in a paper titled: “Contributory Pension for Self Employed Tailors and Garment Workers”, delivered recently in Lagos.  He noted that the special registration, is necessary because of the peculiarities of the the sector.

He identified major challenges in the sector to include,  absence of formal structures; low and irregular incomes earned by workers except those on fixed salaries; highly mobile and flexible jobs and lack of permanent work address in many instances amongst others.

Dr. Farouk said the above peculiarities require special registration and customer service platforms even as the Commission is anticipating erratic contributions, remittance and withdrawal arrangements.

PenCom, he said, hopes to make the scheme flexible to accommodate workers in the informal sector and self-employed persons, adding that the Commission is ready to partner trade associations, Non Governmental Organisation (NGOs) and religious bodies to make the Scheme work, he added.

Director-General PenCom Mrs Chinelo Anohu-Amazu, who spoke on benefits accruable from the initiative, said there would be incentives like  apportionment   of contributions   where  one  portion  is treated as   savings   for   pension   and   the   second   portion   treated   as   voluntary contribution   which  could  be accessed   not  more  than  four  times  in a year.
  
"The contributions could also be used as collateral for mortgage, provision of health insurance etc.  The framework  also sets out the registration  process,  medium  of remittance of  contributions   which  would   include  the  use of mobile money  transfer, internet  banking  etc.  It also highlighted how benefit could be accessed by contributors," she said.

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