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Chuks Udo Okonta
Pension Fund Operators (PFOs) have grew workers pension contributions by over N8 trillion accruing from investments.
Data from Pension Fund Operators Association of Nigeria (PenOp) revealed that the total funds under the Contributory Pension Scheme (CPS) stood at 17.64 trillion as at October 2023, while ontributions made by the workers from both private and public sectors stood at over N9 trillion.
Chief Executive Officer, PenOp, Oguche Agudah, in document entitled: ‘At the dawn of 20 years of pension reform, what are the gains?’ stated that workers’ contributions accounted for 54 per cent, while the return on investment accounted for 46 per cent of the entire pension fund assets as at the end of June 2023 from the beginning of the CPS in 2004.
Oguche submitted that workers’ contributions were judiciously invested and the returns were added to the workers’ pension savings, to reduce the effect of inflation on the funds.
Further figures, from him, showed that as at the end of the third quarter of 2023, the PFAs had recovered N24.8 billion from defaulting employers,
The PenOp CEO noted that in second quarter, 2023, N665.13 billion had been paid as a lump sum to annuity retirees; and N964.24 billion to programmed withdrawal retirees, making a total of N1.64 trillion to 442,000 retirees.
He posited that N208.86 billion was paid to 475,235 workers who lost their jobs before getting to the official retirement age and were unable to get another job after four months.
Total death benefits paid to 91,214 beneficiaries, he said amounted to N356.32 billion in the second quarter of 2023.
The report by Oguche showed that 649 contributors got approval to access N7.89 billion from their RSAs for residential mortgages.
The CEO while highlighting the expectations of the operators in 2024 and beyond, said, it was expecting to celebrate 20 years of the Pension Reform Act, show greater focus on micro pensions, and also look into the revision of investment guidelines.
He added that the operators looked forward to more applicants and approvals for RSA mortgage, possible kick-off of offshore investment, and infrastructure consortium.
Oguche maintained that between 2007 and July 2023, contributors under the CPS rose from 2,543,178 to 10,023,314.
President of PenOp and Chief Executive of Stanbic IBTC Pension Managers Limited Olumide Oyetan, said the CPS remains one of the greatest national policy from democracy, stating that before commencement of the CPS, retirees were subjected to old age poverty as they were unable to get their pension at retirement.
He posited that the CPS is unique due to the safe valves, checks and balances ensured by the tripod structure which are the regulator, PFAs and Pension Fund Custodians (PFCs).
He called on the government and public to sustain their faith on the CPS which for the past 19 years has continued to thrive without any incident of fraud.
He said pension operators would continue to innovated and comply with stipulated rules in offering quality services to contributors and retirees.
