Pension assets hit N4.5tr
The National Pension COMMISSION (PenCom) on Thursday disclosed that a large pool of investible fund of pension assets has hit over N4.5 trillion as at June 2014.
Director General of PenCom, Chinelo Anohu-Amazu, disclosed this in Lagos at a conference on Pension Reform Act (PRA) 2014 to sensitise stakeholders in the South West geopolitical zone on the new provisions and developments ushered in by the PRA 2014.
She appealed to states and local governments in the country that are yet to adopt the Contributory Pension Scheme (CPS) to do so to enable their EMPLOYEES BENEFIT from the scheme.
The Pencom boss also stressed the need to amend the Act to suit the present situation and address the issues inherent in the PRA which necessitated the amendments.
“A large pool of investible fund of pension assets has hit over N4.5 trillion as at June 2014 and the COMMISSION
has established functional offices in the six geo-political zones in Nigeria and is now strategically positioned to facilitate and offer the needed technical assistance to states and local governments in their efforts to adopt and implement the CPS.
has established functional offices in the six geo-political zones in Nigeria and is now strategically positioned to facilitate and offer the needed technical assistance to states and local governments in their efforts to adopt and implement the CPS.
“Despite the achievements with the PRA 2004 there is need to amend the Act to suit the present situation and address the issues inherent in the PRA which necessitated the amendments of the PRA 2004,” she stated.
According to Anohu-Amazu, the APPLICATION of the CPS by states and local governments has also received a boost under the PRA Act 2014, by setting a standard which state governments are required to comply with for the benefits of their respective employees.
of the CPS by states and local governments has also received a boost under the PRA Act 2014, by setting a standard which state governments are required to comply with for the benefits of their respective employees.
The PenCom boss further said the new amended Act made provision for voluntary participation in the CPS thereby paving the way for the coverage of the INFORMAL sector.
sector.
“Furthermore the PRA 2014 made provision that allows contributors seeking to own their primary homes, to apply part of their retirement savings account balance as equity contribution for residential mortgage, subject to the guidelines issued by the COMMISSION,” she added.
,” she added.
On performance of the CPS, she emphasised that the payment of pension under the CPS has been prompt and consistent since 2007, adding that from a story of about N2 trillion in pension deficit under the defunct defined benefits Scheme as at 2004 it accumulated large pool of investible fund of over N4.5 trillion pension assets as at June 2014.
“The CPS has more than 6.2 million contributors that have been registered since the inception of the Act in 2004,” she said.
The PenCom boss explained that the amended Act has provided wider coverage for private sector EMPLOYEES and upward review of the minimum rate of pension contribution, adding that the PRA 2014 has also reviewed upwards the sanctions and penalties against infractions of the provisions of the Act.
and upward review of the minimum rate of pension contribution, adding that the PRA 2014 has also reviewed upwards the sanctions and penalties against infractions of the provisions of the Act.
She also assured stakeholders that when the Act is implemented, the development would assist in bridging the housing deficit in Nigeria.
“The COMMISSION has commenced the process of reviewing its investment regulations with a view to facilitating the investment of Pension funds in bankable infrastructure in the country,’’ she stressed.
has commenced the process of reviewing its investment regulations with a view to facilitating the investment of Pension funds in bankable infrastructure in the country,’’ she stressed.
See full story: Daily Independent
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