PenCom Set To Introduce Micro Pension Plan In 2019

L-R: Chairman, House of Reps Committee on Pensions, Hon. Hassan Adamu Shekarau; Chairman, Senate Committee on Establishment and Public Service, Sen. Emmanuel Paulker; Acting Director General, National Pension Commission, Haj. Aisha Dahir-Umar; and President of the Nigerian Labour Congress, Comrade Ayuba Wabba.

***As Pension Fund Assets Hits Over N8.5 Trillion

By LOVETH AZODO, Lagos

The Acting Director General of National Pension Commission (PenCom), Aisha Dahir-Umar, has indicated the Commission’s plan to introduce Micro Pension Scheme next year, nationwide.

The Micro Pension Plan is targeted at extending the benefits of the Contributory Pension Scheme (CPS) to the informal sector.

This is even as the pension fund assets had grown to over N8.5 trillion.

She gave the indication at the 6th Conference for Directors of Pension Operators held in Lagos, explaining that the product would be part of the efforts towards ensuring in the long term, the sustainability of the Federal Government’s social empowerment programme.

The Director General reiterated that due to the modest successes recorded in the implementation of the Contributory Pension Scheme, there is increasing clamour by pension contributors to redirect their retirement savings towards the resolution of other social problems, such as health, unemployment and other similar challenges.

On challenges the Commission is weathering through, Aisha Dahir-Umar recall that in 2017, the commission had to contend with several Bills before the National Assembly seeking to dismantle the Contributory Pension Scheme but attributed its success to the continuous stakeholders’ collaboration and engagement.

“The Commission therefore, believes that directors of operator companies must appreciate the critical importance of stakeholder collaboration and the need to give it the attention it deserves”, she said.

She noted that the pension reform has been very impactful in Nigeria since the beginning of its implementation in 2004, pointing out the economic and social spheres as the major visible areas of the impact.

“The the formation of long term domestic capital, represented by the over N8.5 trillion worth of pension assets, is slowly but surely changing Nigeria’s financial landscape and by extension, the course and pace of our socio-economic development. This transformation has placed a huge responsibility on your shoulders as directors of the entities that administer the pension funds and assets”, she stated

The Chairman House committee on Pension, Hon. Hassan Adamu Shekrau, appealed to the President to release money to pay accrued right to pensioners as at when due so that the Contributory Pension Scheme would be sustained and better the life of the pensioners

On Achievements, he pointed out that passing the Nigeria Institute of Pension Practitioners bill will go a long way in safeguarding the pension fund and will curb ignorant practitioners in the industry thereby making the workings of the industry better.

He also urged operators to revive their publicity unit to rightly educate the public on their activities and the workings of the industry.

Also speaking, the Nigeria Labour Congress (NLC) President, Ayuba Wabba urged that the pension funds should not be treated like money deposited in banks.

“It is not a hiding fund, someone has the fund, it is not a hiding fund that anybody can just deep hands into or borrow for an idea not minding if the idea the person has will work or not.

“That fund needs to be secured and that is why it has to be regulated very closely that nobody will come in and think it’s a free money. We stand by any process that ensures these money are secured because this is a case of life and death for us working people and pensioners” he stressed.