The new pension scheme in the country has been described as being of critical importance to workers’ welfare, the growth of firms and development of the national economy.

The Managing Director and Chief Executive Officer, Oak Pensions, Mr. Mike Olayinka, stated this during the company’s Customers’ Forum, held at the Secretariat of Ado-Odo/ Ota Local Government, Ogun State, on Wednesday.

According to him, pension addresses the anxiety of workers, provides a pool of large funds for long-term investments, just as it has become a key instrument in budgetary provision by the government.

He said, “Pension is very critical to the development of the nation in two principal ways and two other ways. It brings about long term fund that can be made available for long term projects. As at the end of the last quarters, March 2010, the pension asset under the new scheme stood at N1.6 trillion and we have about 400million retirement holders nationwide.

He also spoke on the scheme’s impact on the lives of workers.

Pension, according to Olayinka, “Also addresses the anxiety that current workers have. In most cases, they cannot concentrate on their jobs because they are constantly thinking of ‘when I leave the job’ and ‘what will become of me, among others’.

He added, “Now 7.5 per cent of their basic transport and housing is being forcefully paid under the law for them, and the employer adds another 7.5 per cent: that is 15 per cent of their basic transport and housing. If you look at that over a number of years, by the time someone retires after 35 years in service or 55 or 60 years, the pension must have reasonably grossed up, and the person can get on to do whatever he wants to do.”

On its economic importance to the nation, Olayinka said pension had become “a line on the budget that the Federal Government must make provision (aside) for.”

According to him, “As at last year, N600 million was made available for pension. This will continue. Pension has become a steady source of long-term fund for the development of the country and I think very soon, long-term projects like railways, roads, infrastructural facilities will go on pension assets and pension fund under management.”

However, he said there was still scepticism among Nigerians on the benefits, propriety and fidelity of pension fund administrators.”

Accordingly, he said the customers forum was to enable the company know its customers, listen to their concerns and assure them of the company’s fidelity and commitment to their welfare and interest.