The managing director of Premium Pension Limited, Mr. Wilson Ideva has described the new Contributory Pension Scheme (CPS) as a huge success and the most impactful government initiative in recent times.
He said the scheme has already begun to improve the lives of retirees in the country and speedily inching towards becoming a critical contributor to national development.
Mr. Ideva said that there was need to applaud the initiators of the scheme in the country, adding that current success of the scheme has changed peoples perception who Initially did not believe in it.
“This is understandable considering where we were coming from. Such skepticism has been dissipated with the successes recorded by the new pension scheme since its more than ten years of existence.
He recalled the pathetic situation of pensioners before the scheme was introduced and juxtaposed it with the current situation where workers are partners in the management of their pension funds.
He urged Nigerians to note the difference between the new Contributory Pension Scheme and the old defined benefit system under which some pensioners are still being managed.
He noted that under the new scheme entitlements are being paid regularly.
“All you need to do is notify your Pension Fund Administrator (PFA) six months before your retirement and submit all the necessary documents.”
He said. “Once this is done, within one or two months upon retirement you will be paid your lump sum which has replaced the gratuity and thereafter you begin to enjoy continuous programmed withdrawal.”
Mr. Ideva also pointed out that while the old scheme which operated before 2004 left a huge pension deficit within the economy said to be in the neighborhood of two trillion naira, the new scheme has accumulated pension asset of over 4.7 trillion naira and an enrolment of over 6.5 million people.
“So when you put this together you will see that it has been a success story and this pool of funds is already playing a critical role in national development” he averred.
“The pension industry has been a huge success and we are playing our role effectively as stipulated in the Pension Reform Act, he explained”