PenOp Opposes Amendment Of Pension Reform Act On Lump Sum Withdrawals

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Yemisi Izuora.

The Pension Fund Operators of Nigeria (PenOp) has said that the bill currently at the National Assembly seeking the provision of 75 per cent as pension lump sum for retirees would significantly distort the basic aim which the new pensions scheme intends to achieve.

The association is of the opinion 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, the Chief Marketing Officer, Premium Pension Kabiru Tijjani said provisions in the bill has scaled its second reading and if it succeeds it would not be in the interest of the contributors.

Tijjani also denied the allegation 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.

Oriental News Nigeria reports that a bill seeking the provision of 75 per cent as pension lump sum for retirees, was proposed and sponsored by Senator Aliyu Magatakada Wamako about three months ago.
The bill, among other things seeks adjustment of some sections of the Pension Reform Act, to accommodate new provisions that could provide leverage to retirees given the delays and other difficulties they are encountering in withdrawing their savings from retirement accounts.

PenOp Executive Secretary, Sussan Oranye in her remarks 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.

According to her, “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”.

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