Pension fund operators synergise to protect CPS

The licensed pension fund operators under the auspices of the Pension Fund Operators Association of Nigeria (PenOp), have resolved to work closely and better with other members of the association to ensure that the Contributory Pension Scheme, (CPS), is protected and also made flexible to serve the current and future needs of the contributors and the country as well.

The meeting acknowledged the importance of enlightenment and engagement with state governments to drive and deepen compliance. This resolution and others were made by the PenOp at 3rd annual retreat for National Assembly members and key stakeholders in the pensions industry held recently.

The theme of this year’s event was “17 Years of pension reforms: Challenges, gains & opportunities”.

According to a statement from the association, the theme was meant to xray the industry since the passing into law of the initial pension reform bill in 2004.

It was also chosen in order to enable the stakeholders discuss areas that require improvement in addition to projecting into the future possibilities of the pension industry.

“The meeting resolved that public enlightenment is required to drive compliance among state governments to expose them to the benefits of embracing the contributory pension scheme and also educate them on how the regulated financial market leverage pension assets to facilitate infrastructural development. “The joint committees for establishment and public service of the senate and house of representatives committee on pensions along with the National Pension Commission (PENCOM) should set up a task force to engage state governments and come up with innovative ways to help drive compliance by state governments.

“The house committee on pension’s subcommittee on amendment of the PRA 2014 should note all point discussed at the retreat, in addition to the submission from other stakeholder and the national pension commission (PENCOM) and work with the senate committee on establishment and public

service of the senate and house of representatives committee to expedite work on the amendment of the PRA 2014 within the next 4 month culminating in presenting amended act for the president assent by November 2021.” Speaking earlier, the keynote speaker and the pioneer, Director General, National Pension Commission (PenCom), Muhammed K. Ahmad, in his paper, identified the legislators, labour union and pension operators as “reasons” the scheme has been successful.

While he opined its sustainability on the fact that “the scheme is driven by the private sector” while “the regulators promote a level playing field for all stakeholders.”

While Ahmad commended the regulatory framework which ensures the daily monitoring of funds and continuous regulation of the system, he charged the industry to move towards greater self-regulation, adoption of shared services in order to reduce costs and a deepening of the scheme to embrace those in the informal sector.