The Pension Fund Operators Association of Nigeria (PenOp) said its members, through the scheme, has paid N260 billion to retirees since it was inaugurated over a decade ago.It, therefore, urged organisations that have still not joined the scheme to do so in the interest of the future of their workers.
Its Executive Secretary, Susan Oranye, who spoke during this year’s May Day celebration at the Onikan Stadium, Lagos, said the essence of PenOp’s involvement in the May Day celebration was to celebrate the Nigerian workers, celebrate the hard work that Nigerians go through every day and to encourage them to prepare for the future.
She said: “The contributory pension scheme, which has existed for about 11 years, has recorded successes. About N260billion has been paid to retirees from inception to March 20 this year. As at last year, we had 5.5million contributors in the contributory pension scheme, it has gone up by 6.4 and we have just ended the first quarter.
“As you are work very hard today, you must remember that there will be a time when you can’t work as hard as you work today. When you retire and your salary stops coming in, you will still need to cater for some other needs. That is the essence of having a pension.”
She further explained that it is eight per cent of the worker’s basic salary, housing and transport and the employer is required and employers are to match it with 10 per cent of that same emolument and that goes into employee’s account.
Oranye noted that the informal sector contributes to the bulk of the Nigerian economy which cannot be ignored adding that there has to be a framework that caters for the uniqueness of the sector.
She assured that the National Pension Commission (PenCom) and PenOp are collaborating and working very hard on a framework that will accommodate the informal sector, so that everybody that works will have the opportunity to set up a retirement savings account. The framework is being discussed among the operators, stakeholders and the PenCom.
Speaking on the compliance rate, she said: “The population of Nigeria is approximately 172million people and half of this makeup the working population, which is 80million people, with 6.4 currently in the contributory pension scheme. This she said is a huge success.
“In the Pension Reform Act 2014, compliance is a major issue. Employers are demanded by the law to set up retirement savings account for their employees and make sure they remit. For those employers who do not comply, the National Pension Commission has recovery agents that will track them down. Any employer who does not comply will be held liable by the law,” she added.
Oranye however said there are still so many people who need to be educated, not just about pension but about financial literacy and PenOp is actively involved in seeing that people are educated.
“We are also involved in the National Financial Inclusion System, where we are trying to increase the level of financial literacy across the country and it is our core responsibility to raise the awareness. We arrange forums with the media and employers in different locations to get people educated and let them know what it is all about,” she said.
PenOp provides financial security in retirement, is of the view that employees deserve to be looked after and for the employees to be productive enough to grow the business, the employer has to put their future and wellbeing into consideration by providing the employees with their pension.
Its Executive Secretary, Susan Oranye, who spoke during this year’s May Day celebration at the Onikan Stadium, Lagos, said the essence of PenOp’s involvement in the May Day celebration was to celebrate the Nigerian workers, celebrate the hard work that Nigerians go through every day and to encourage them to prepare for the future.
She said: “The contributory pension scheme, which has existed for about 11 years, has recorded successes. About N260billion has been paid to retirees from inception to March 20 this year. As at last year, we had 5.5million contributors in the contributory pension scheme, it has gone up by 6.4 and we have just ended the first quarter.
“As you are work very hard today, you must remember that there will be a time when you can’t work as hard as you work today. When you retire and your salary stops coming in, you will still need to cater for some other needs. That is the essence of having a pension.”
She further explained that it is eight per cent of the worker’s basic salary, housing and transport and the employer is required and employers are to match it with 10 per cent of that same emolument and that goes into employee’s account.
Oranye noted that the informal sector contributes to the bulk of the Nigerian economy which cannot be ignored adding that there has to be a framework that caters for the uniqueness of the sector.
She assured that the National Pension Commission (PenCom) and PenOp are collaborating and working very hard on a framework that will accommodate the informal sector, so that everybody that works will have the opportunity to set up a retirement savings account. The framework is being discussed among the operators, stakeholders and the PenCom.
Speaking on the compliance rate, she said: “The population of Nigeria is approximately 172million people and half of this makeup the working population, which is 80million people, with 6.4 currently in the contributory pension scheme. This she said is a huge success.
“In the Pension Reform Act 2014, compliance is a major issue. Employers are demanded by the law to set up retirement savings account for their employees and make sure they remit. For those employers who do not comply, the National Pension Commission has recovery agents that will track them down. Any employer who does not comply will be held liable by the law,” she added.
Oranye however said there are still so many people who need to be educated, not just about pension but about financial literacy and PenOp is actively involved in seeing that people are educated.
“We are also involved in the National Financial Inclusion System, where we are trying to increase the level of financial literacy across the country and it is our core responsibility to raise the awareness. We arrange forums with the media and employers in different locations to get people educated and let them know what it is all about,” she said.
PenOp provides financial security in retirement, is of the view that employees deserve to be looked after and for the employees to be productive enough to grow the business, the employer has to put their future and wellbeing into consideration by providing the employees with their pension.
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