Operators in Nigeria’s pension industry are calling for more contributors to join the Contributory Pensions Scheme, as it promises significant return and happy retirement to those who laboured in their Youths.
They urged both private and public sectors to take seriously, the pension package of their workers because of its inherent benefits.
A facilitator of the Financial Reporting training, Omagbitse Barrow, who spoke during a virtual training organised by the Pension Fund Operators Association of Nigeria (PenOp) for members of the National Association of Insurance and Pension Correspondents (NAIPCO), urged employers to join the Contributory Pension Scheme(CPS) and register their workers under the scheme.
He called on employers to remit their workers’ monthly contributions promptly, adding that, this gesture would ensure employees have a secured life after retirement.
Barrow, noted that the key areas in the pension system includes; Compliance, Contributions, Investment, Service support and withdrawal.
He reiterated that the biggest change between the Contributory Pension System and Defined Benefit Scheme ( DBS) is that the employee now contribute as well as the employer.
To him, the higher the contribution, the higher the funds, Proffering solutions on how to boost retirement benefits for pensioners in the CPS, he stated that, improving productivity and hard work would go along way in boosting ultimate retirement benefit.
On withdrawal, he lamented that, lack of proper understanding on 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 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 pensions is a delicate matter and to that end, needs a proper understanding of the industry.
He said: “people are very emotional when it comes to their pensions.8 Any chance or story about their pensions getting lost, stolen, embezzled, or loosing 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.