N15trn Pension Assets, Proof Of CPS’ Effectiveness – PenCom
The National Pension Commission (PenCom) has described the Contributory Pensions Scheme (CPS) introduced in 2004 as a very successful initiative, having consistently grown the nation’s pension assets from N2 trillion at inception, to N15 trillion today.
The Director General of the Commission, Mrs. Aisha Dahiru-Umar, passed a vote of confidence on CPS at the maiden edition of the Pension Conference organised by the Pension Correspondents Association of Nigeria (PENCAN) in Abuja at the weekend.
The PenCom boss, who was represented at the event by an Assistant General Manager in the Commission, Mr. Ibrahim Buwai, said plans were afoot to deepen collaboration with pension operators in Nigeria to immediately onboard about 48 million workers in the informal sector into the federal government’s Micro Pension Plan (MPP).
According to her, the benefits of being captured under the MPP were legion, adding that the platform should be seen and operated as a buffer for the rainy day or a shield against ferocious fiscal headwinds.
The MPP is one of the fruits of the 2014 Pension Reform Act, which allows individuals working in firms with less than three employees and self-employed individuals to voluntarily save for retirement.
She charged the operators to be proactive in tidying up necessary paperwork as and when due to forestall delays in the payment of pension benefits to eligible beneficiaries.
In her remarks, the managing director of Premium Pension, Umar Sanda Mairami, said her firm has paid over N300 billion to Retirement Savings Account holders from inception till date.
She hailed the MPP, describing it as a game changer that would ensure no player in the informal space would be robbed of the benefits of enrolling in a pension scheme.
In her submission, the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Dr. Chioma Ejikeme said, the directorate has recorded some notable achievements since establishment.
Dr. Ejikeme said, PTAD launched “I Am Alive” Confirmation (IAAC) Solution, an online application designed to enable pensioners on the Directorate’s payroll easily confirm their aliveness from the comfort of their homes or neighbourhood, using either a smartphone or a computer system.
Ejikeme, who was represented by the Head, Corporate Communications, PTAD, Mr. Gbenga Ajayi, said, “The “I Am Alive” Confirmation (IAAC) Solution is safe, convenient, simple, and easy to use. It also eliminates the risks and stress associated with pensioners and PTAD staff traveling all over the country for periodic field verifications”.
Ejikeme acknowledged that the success story in PTAD would not have been possible without the support and collaboration of the media, especially the Pension Correspondents Association of Nigeria (PENCAN), “which is why we are here to reciprocate the support you have given to the Directorate over the years”. You have been immense in helping PTAD disseminate information to our pensioners and stakeholders, keep the news about the Directorate on the front burner and highlight our achievements”, she said.
In his presentation, the Chief Executive Officer of PenOP, Oguche Aguda, disclosed that 49.8 million Nigerians are in the informal sector, and 48.7 million out of the figure, representing 98 percent, are excluded from formal pension.
Oguche, who was represented by Mayomikun Obadofin, project management lead at PenOP, said apart from the flexibility of the scheme, incentives such as compounded interest, 40 percent contingency withdrawal, and health insurance would be introduced to encourage participants.
He charged operators to leverage the robust platform provided by PENCAN to sensitise and build trust in Nigerians to enable them to embrace the scheme.
Reiterating the PenOP CEO’s stance, the unit head of micro pensions (North) at Access Pensions, Zuwaira Haliru said efforts were being intensified by pension fund administrators to attract workers into MPP.
Also speaking, the National President, Nigeria Union of Pensioners, Godwin Abumisi, called on the PFAs and the regulator, PenCom, to strictly monitor all operations in the pension sub-sector so that compliance with rules of engagement, especially with regards to investment regulations, is not toyed with.
