Pension Operators To Introduce Incentives To Encourage Participation In Micro Pension Scheme
Pension Fund Operators Association of Nigeria (PenOp) said its members are introducing value addition incentives to encourage more participation in Micro Pension Plan in order to drive growth in the pension industry.
Speaking at the PenOp annual media parley yesterday in Lagos, Managing Director/CEO Access Pension Fund Custodian and a member of PenOp Media Committee, Mrs. Idu Okwuosa, said the association is working on how to introduce incentives into the micro pension plan as value addition to contributors.
Idu said the operators have reached out to some financial service providers, especially insurers to work out measures for adoption of products such as health insurance, term life assurance, loss of job policy amongst others as incentives for their micro pension contributors to improve the lives and fortune of micro pension subscribers.
According to her, PenOp and the National Pension Commission (PenCom) desire a better lifestyle for micro pension contributors and are working to see that aside the benefits of retirement and contingency savings, contributors maximise other robust incentives.
Head, Micro Pension Department, National Pension Commission (PenCom) Dauda Ahmed, while giving clarification on the growth of Micro Pension Plan In the country during the event, disclosed that 72 thousand participants registered under scheme as at November, 2021.
Dauda who called for aggressive media awareness for increased participation in the scheme, noted that micro pension was designed to cater for organisations which were before now could not participate in the Contributory Pension Scheme (CPS) because they do not have minimum of three employees or self employed in the informal sector, such as people with small scale business, petty traders, artisans, entrepreneurs among others.
He explained that micro pension was introduced to curb old age poverty by assisting people to contribute when they were working so as to have a long term savings which they could fall back on when they become old, adding that the scheme was made to be voluntary against the conventional pension which is mandatory
Dauda who assured that the Micro Pension was flexible in the sense that the amount to be contributed and the frequency of contribution is determined by the contributor, stated that the scheme will provide access to other incentives; secures financial autonomy and independence of retirees and that contributions will be passed to the next of kin in case of contributor’s death.
Some executives of PenOp and officials of Pen who attended the event include: the Chief Executive Officer, PenOp, Oguche Agudah; Managing Director/CEO Access Pension Fund Custodian, Idu Okwuosa; Head, Micro Pension Department, National Pension Commission, Dauda Ahmed; Head, Benefits and Insurance, S Bwala; President, Pension Fund Operators Association of Nigeria, Wale Odutola; Head, Investment Supervision Department, Ekanem Aikhomu; Head, Surveillance Department, Ehimeme Ohioma; Managing Director/ CEO First Pension Custodian Nigeria, Oloruntimilehin George and Principal Manager, South-West Zonal Office, Sola Adeseun at the event.
