Takor
By Edet Udoh
The former board member of the National Pension Commission (PenCom), Ivor Takor, has called on Nigerian lawmakers to tread with caution in their moves to amend the Pension Reform Act (PRA) 2014 in order not to jeopardize the real essence of establishing the scheme.
Speaking at the weekend as a guest on ‘Retirement Mata’, on 102.7 Naija FM Radio Station, on the topic “Plans to Change Pension Law” Takor warned that the plans by a Senator to amend the law to pave way for retirees to collect 75 per cent as lump sum will not augur well for the pensioners.
He said although it may sound very good and enticing in the ears of the people, but the aftermath effect may be counter-productive both for pensioners and the scheme.
Takor explained that the workings and operations of Contributory Pension Scheme (CPS) is different from the normal ‘esusu’ contribution, adding that pension is to provide readily available funds that will take care of the pensioners’ well-being to live a normal life during retirement.
He also advised the Senate against their plans to review upward the entitlement of contributors who lose their job from 25 per cent to 50 per cent, saying the move will affect pension management arrangement.
Takor posited that the 25 per cent was to make funds available to the contributor to take care of his/her immediate needs in order to cushion the effect of losing his job while searching for another job.
According to him: “The arrangement was that when you lose your job and not yet retired, come and take small money (25%) out of your accumulated savings and take care of your immediate needs while looking for another job. Taking 50 per cent is not good. Although people will see it as good but for pensioners and pension arrangement, it is not good.”
On the Senate plans to remove some contributors including the Police, Customs, Immigrations, Prisons, Civil Defence amongst others from the scheme, he said the move will affect the scheme.
Takor said if lawmakers plans to amend the 2014 Pension Act is truly to correct the past problems, removing some existing contributors from the scheme will affect the scheme adversely.
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