184,979 Retirees Benefit From CPS
The National Pension Commission (PenCom), has said that no fewer than 184,979 retirees were benefitting from the Contributory Pensions Scheme (CPS).
The Acting Director-General of PenCom, Mrs Aisha Dahir-Umar, made this known in Abeokuta at the Annual Retreat of Pension Operators (PenOp).
She said that as at March 2017, the retirees were currently receiving pensions as and when due with an average monthly pension payment of N6.7 billion.
She commended the Federal Government for providing stable, predictable and adequate source of income for employees by the culmination of Pension Reform Act (PRA) 2004.
Dahir-Umar, represented by PenCom Head of Research and Management, Mr Aminu Farouk, said that the Pension Fund Assets had grown to N6.42 trillion.
She said the total pension assets were equivalent to 6 per cent of Nigeria’s rebased Gross Domestic Product (GDP).
According to her, the figure represents the total pension asset grown as at March with an average monthly contribution of N30 billion.
Dahir-Umar said the number of registered contributors also grew significantly to 7.4 million within the same period.
She said that PenCom and its reform Act had gained public confidence within the short time of implementation.
According to her, PenCom has been able to pull about 200,000 private sector employers of labour into the scheme and have contributed about 60 per cent of the total pension asset.
She, however, said that problems that bedevilled the old Defined Benefits Schemes might reoccur if the bill seeking to amend the Pension Reform Act 2014 to exclude paramilitary agencies was passed and signed into law.
“The bill is seeking to amend the Pension Reform Act 2014 for exemption of the personnel of the Nigeria Police Force, Nigeria Security Civil Defence Corps and the Nigeria Custom Service.
“Also, Nigeria Prison Service, Nigeria Immigration Service and the Economic and Financial Crimes Commission (EFCC),’’ she said.
She added that the bill went through the second reading on Tuesday, May 16, 2017.
According to her, the total premium paid to insurance companies for monthly Life Annuity was N170.57 billion as at March 2017.
“This has significantly assisted the growth of the insurance industry in Nigeria, which is a special focus area under the Federal Government’s Economic Recovery and Growth Plan (ERGP)
“Already, a lot of retirees of the paramilitary agencies are annuitants, thus exempting them would amount to political interference to contractual obligations as this annuities are contract between annuitants and insurance companies.
CREDIT: THE TIDE