Transfer Window Kicks Up June 2020 – PenOp

L-R: Head, of Branding and Communications, PenOp, Wale Odutola; President of PenOp, Mrs. Aderonke Adedeji; Head Corporate Communications, National Pension Commission (PenCom) Mr. Peter Aghahowa at the 2019 PenOp Annual Media Seminar held on Friday in Lagos.

By LOVETH AZODO, Lagos

***PenCom Records 28,000 Contributors To Micro Pension, Laments Low NIN Registration

Pension Operators Association of Nigeria (PenOp) has disclosed that pension transfer window which allows seamless transfer of Retirement Savings Account (RSA)s from one PFA to another will kick up June 2020.

This is just as the National Pension Commission (PenCom) disclosed that since the inception Micro Pension in 2018, 19 Pension Funds Administrator (PFA)s has recorded a total number of 28,000 contributors to the micro pension scheme as at October 2019.

Speaking at the 2019 PenOp Annual Media Seminar held Friday in Lagos, Head, Corporate Communications, PenCom, Peter Aghahowa in a table explained that up to June 2019, 21,430 contributors were registered in the Micro Pension Scheme, in July 2019, the commission recorded 221 contributors stressing that in July was the commencement of new registration application that uses National Identification Number (NIN).

According to him, in August 2019, 1,299 contributors were registered, in September 2019, 2,737 contributors were registered and in October 2019, 3,833 contributors were registered totaling 28,000 contributors as at October 2019.

President of PenOp, Aderonke Adedeji lamented that low National Identificatiin Number (NIN) registration has posed a big challenge to the growth of the Micro Pensions scheme as it is one of the requirements needed for registration.

However, Adedeji stated that the commission has started engaging the National Identification Management Commission (NIMC) “Low NIN registration has slowed down registration, the process of attaining NIN is far from smooth but as soon as data are gathered the transfer window will be opened soon.”

Amongst other challenges mentioned were Low financial literacy, Low awareness, inadequate technology platform to support the scheme.

On the penetration of the scheme, she said that the market is not as deep as it should be, yes the economy is growing, unemployment is growing and it is a threat to our growth, we are growing but not as expected.”

PenCom spokesperson, Peter Aghahowa stated that the 40percent contrigent and 60percent retirement benefits from feedback is a major marketing strategy ” people are happy that they don’t only save for pension but can also have access to 40percent of their money,” he said.

He also assured that the commission is in collaboration with National Identification Management Commission (NIMC) to ensure smooth and fast NIN registration.

Speaking on the accrue benefits of pensioners, he said “the accrued right is a big challenge on the state level and federal level because it is a funding issue.”

However, he assured that the commission is engaging the government and the engagement is yeilding positive results.

In the state level, he said “some states are struggling with paying salaries talk more of accrued right because it is a function of funding.”

On PenCom’s effort, he stated “we can only appeal and intensify effort to make sure there’s funding, yes we are bothered at the state’s inability to pay right but we are working closely with the state.”

We had a forum, in owerri we had a forum, we engaged them on the issue, we should also know that least differs in states some are making efforts than others.” He said.

Also speaking, during his address, Head of Branding and Communications, Wale Odutola stated that the Micro Pension Scheme is not an easy task to grow “our focus is how to make the Micro Pension a success in Nigeria,” he said.