The Pension Operators (PenOp) in the country on Thursday said they were not paying retirees lump sums on their own discretion.
The Chief Marketing Officer (CMO) of Pemium Pension Ltd, Mr Kabiru Tijani, who spoke on behalf of the operators at the 2017 Annual Retreat, organised by PenOp in Abeokuta, said it was untrue and a “ total misconception“.
The News Agency of Nigeria (NAN) reports that PenOp consists of all the Pension Fund Administrators (PFAs) in the country.
“PenOp is a non-governmental, non-political and non-profit making body established to promote the operations of the pension industry.’’
He said the bill seeking the provision of 75 per cent as pension lump sum for retirees on retirement, as against 25 per cent lump sum and 50 per cent programme, was partly due to the misconceptions.
Tijani, who spoke on “Benefit Administration Process and Challenges’’ at the two-day retreat, said PFAs were never vested with discretion to calculate lump sum.
He explained that the PFA’s had been using the template handed to them by National Pension Commission (PenCom) to calculate the lump sum each retiree was entitled to.
“The template also emphasised that the programme withdrawal must be such that will guarantee 50 per cent of retirees’ monthly salary as monthly pension payment on retirement,’’ he said.
The Executive Secretary of PenOp, Mrs Susan Oranye, said that the country’s pension industry had experienced positive pedigree shift.
She said the PFA’s had ensured safety of pension funds against the belief that pension funds were a national cake.
The executive secretary said that PFA’s would continually ensure the retirees access to pension aptly.
She urged Nigerians that were yet to participate in pension schemes to do so, to have resources to fall back on at old age.
“Pension will always guarantee good life for Nigerians at old age,’’ she said.
According to Oranye, only 7.3 out of 90 million working class citizens are in the Pension Contribution Schemes (CPS).
“It is from this 7.3 million working class that makes the pension assets to hit N6.3 trillion.
“So you can image if half of the 90 million working population are in the contributory schemes.”
According to her, the fund will be huge enough and can be accessed to develop infrastructure that result to external loans. (NAN)
OBA/IA