Experts task employers on prompt remittance of workers’ pension contributions
Experts who spoke at the recent training workshop organized by the Pension Fund Operators Association of Nigeria (PenOp) for members of the National Association of Insurance and Pension Correspondents (NAIPCO) have called on employers to remit their workers’ monthly contributions promptly, to ensure employees have a secured life after retirement.
The facilitators at the virtual event intimated NAIPCO members on the realities in the pension sector and also charged employers in both private and public sectors to take seriously, the provision of pension package for their workers
While urging employers to join the Contributory Pension Scheme (CPS) and register their workers under the scheme, the speakers educated the Journalists on the workings of the pension sector and how they could help the public understand the inherent benefits of the scheme.
The Chief Executive, Learning Impact Nigeria, Mr Omagbitse Barrow, noted that the key areas in the pension system include; Compliance, Contributions, Investment, Service support and withdrawal.
He reiterated that the biggest change between the Contributory Pension System and the Defined Benefit Scheme (DBS) is that the employees now contribute as well as the employer.
For Mr Barrow, the higher the contribution, the higher the funds and while proffering solutions on how to boost retirement benefits for pensioners in the CPS, he stated that improving productivity and hard work would go a long way in boosting ultimate retirement benefit.
On withdrawal, he lamented that lack of proper understanding of the mode of withdrawal of pension funds poses a big challenge to the growth of the industry.
He urged the public to seek understanding on the withdrawal, modes, during the registration process, so that they are better informed on the exit options, which are; Annuity and Programmed Withdrawal.
On his part, the CEO of PenOp, Oguche Agudah, noted that pension is a delicate matter and to that end, needs a proper understanding of the industry.
“People are very emotional when it comes to their pensions. Any chance or story about their pensions getting lost, stolen, embezzled, or losing value causes a lot of negative emotions amongst contributors.”
He added that pensions and investments are technical issues, “so we have a responsibility to break down salient aspects of the scheme and pensions in general to the public in simple, easy to read and understandable language” he said.
In his remarks, Chairman of NAIPCO, Chuks Udo Okonta, lauded PenOp for the gesture and pledged on behalf of NAIPCO members to sustain the creation of robust awareness on operations of the pension sector just as he implored PenOp to always carry NAIPCO along in all their activities.
