• Monday, March 04, 2024
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BusinessDay

Pension operators assure on safety of funds

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Employees in the Contributory Pension Scheme (CPS) have been assured that their funds are protected and would be available to them at their point of retirement.

Pension Fund Operators’ Association of Nigeria (PenOp), managers of the fund, said the law establishing the CPS has got an internal mechanism that guarantees safety of the funds and its availability at the point of retirement of the worker.

Misbahu Yola, chairman, PenOp said since the coming on bard of the Scheme about eight years ago there has never been no single reported case of mismanagement of fund or any kind of fraud. “The system is watertight and no one can even have access to the money expect the contributor at the point of retirement,” he said.

Demola Sogunle, managing director, Stanbic IBTC Pension Managers, said the CPS is one of the best things that the government in recent time bequeathed to the Nigerian workers.

Sogunle said the Scheme has helped to provide a secure future for workers at retirement, adding that workers need not adjust their age any more as there is something to sustain them after working life. “With the Scheme, once you are 50 years, you should retire. People need not adjust their age anymore. People adjust their ages because they are not sure of their future. But with the Scheme, once a worker is tired he or she should retire,” he said.

He called on workers to demand compliance from their employers as their future is determined by what they contribute now, stating that those who are presently contributing are in good company, their future is assured, and some people are working on their behalf to ensure that when they stop receiving salary, they can maintain their living standard.

“It is because of the contributors we do investment strategies, work hard daily, so that they can have something to fall back on when they stops working. It is when people stop working they become more vulnerable and that is when we come in. Contributors should rest assured, for they have nothing to fear.”

Shogunle said the new pension system has a strong internal mechanism, and there is no story, adding that on monthly bases those who have contributed collect their pension without hassles.

“Those who have witnessed the Scheme recognised that it is one of the best things to have happened in Nigeria. This Scheme is one of the unsung reforms former President Olusegun Obasanjo, bequeathed to Nigerians.

“People are yet to come to full realisation that it takes a lot to come from N2 trillion unfunded pension liability to N4 trillion assets in a period of eight years. Those working should make sure that their employers are contributing so that when they retire they will be able to sustain their lifestyle,” Shogunle explained.

Amaka Andy Azike, managing director, Fidelity Pension Managers Limited, called on employers to align with the scheme, adding that it remains one of the best ways they can motivate their workers. She noted that when workers realise that their future is secured due to the contributions made by their employers, they will give their best and work towards the well being of their organisation.