PENCOM LAMENTS GOVT'S FAILURE TO RETIRE WORKERS' SAVINGS

The Director General of National Pension Commission (PENCOM), Mr. Mohammed Ahmad, has disclosed, at a one-day interactive session with stakeholders on the Pension Reform Act 2004 in Lagos, that the major challenges facing the industry include the failure of some ministries,

departments and agencies (MDAs) to provide their nominal rolls to enable the commission credit their employees' retirement savings accounts with monthly pension contributions.

He noted that some public sector employees still have zero balances in their Retirement Savings Accounts (RSAs), adding that other challenges include the unwillingness of some private sector organizations to join the Contributory Pension Scheme (CPS), while others who joined do not remit the monthly contributions and when due.

To address these challenges, he said the organization is soliciting the support of relevant government agencies to ensure that all MDAs submit their nominal rolls bi-annually.

'We would engage recovery agents to follow up outstanding pension contributions from defaulting employers. The transfer of contributions under the NSITF scheme begun in July 2009. Today only 62,406 out of about 1.3 million contributors in the NSITF scheme have forwarded their applications for transfer of the contributions,' he said.

He pointed out that government has been making efforts with a view to ensuring a vibrant and sustainable pension industry that positively impact on the economic development of Nigeria.

He further said that government would continue to issue guidelines and regulations while reviewing existing ones to entrench sound corporate governance in the industry and ensure adequate protection of pension assets.

He stated that the government is currently working on a framework for voluntary participation in the CPS, which provides opportunity for those in the informal sector to make savings to cater for their retirement, adding that they are also working with other regulatory agencies to promote the development of alternative assets classes in which pension funds could be invested to promote national development.