Pension Benefits: PenOp faults 75% Lump sum by N/Assembly …says it robs retirees of more money in account
By Ngozi Onyeakusi
The Pension Fund Operators of Nigeria (PenOp) has kicked against the bill at the National Assembly seeking the provision of 75 per cent as pension lump sum for retirees.
The association insisted that taking such high lump-sum will rob retirees opportunity of keeping more money in their Retirement Saving Accounts (RSA).
Speaking at the 2017 Annual Media Retreat for National Association of Insurance and Pension Correspondents (NAIPCO) organized by PenOp in Abeokuta, the Ogun State capital, the Chief Marketing Officers, Premium Pension Kabiru Tijjani said provisions in the bill which has scales its second reading would not be in the interest of the contributors.
He debunked the allegation at the National Assembly that the Pension Funds Administrators (PFAs) computes retirees’ benefits using their description, insisting that operators follow strictly template set by the National Pension Commission (PenCom).
According to him, the template set by PenCom set was the same template the PFAs is using in calculating what somebody will take as lump sum, monthly pension or accrued pension.
“There is no issue of description at all, what PFAs use is the same template set by PenCom, the template is in such a way that if apply to a retiree, it will automatically does the computation by itself. The template is very objective. There is no descriptive interpretation, if such occurs, PenCom will not take it”, he assured.
Recall that a bill seeking the provision of 75 per cent as pension lump sum for retirees, was three months ago proposed to the National Assembly.
The bill, which was sponsored by Senator Aliyu Magatakada Wamako, seeks adjustment of some sections of the Pension Reform Act, to accommodate new provisions that could provide succour to retirees given the delays and other difficulties they are encountering in withdrawing their savings from retirement accounts.
Also speaking at the event, the PenOp Executive Secretary, Sussan Oranye pledged the association commitment to ensuring security of the pension funds.
She lamented the pervading ignorance among the public especially among those who are in control of power and national resources.
she equally pledge PenOp resolve to ensure there are awareness on pension across the strata of the society.
After 13 years we have about 7.3 million contributors out of the nation’s total population registered with CPS, we made noise of the pension funds, at 6.7 trillion, with much awareness we can even grow these more to ensure more meaningful contribution to GDP”.