The Director General, Pension Commission (PENCOM), Mr. Muhammad Ahmad, last  Sunday said that the Contributory Pension Scheme (CPS) was on course, despite the ongoing probe by the National Assembly.

He gave the assurance in a statement he personally signed and made available to newsmen in Lagos.

Ahmed stated that the commission’s position and activities had been made known to the joint senate committee investigating the administration of pension.

He stated that the fund had also generated a pool of long term investible funds, which was already impacting positively on the nation’s economy.

“The CPS is on course and not in any way endangered by the ongoing probe by joint senate committee on the plight of pensioners.

“The pool of pension funds and assets generated by the CPS has strengthened the Nigeria’s financial sector.

“It has also provided a platform for attaining the transformation agenda of government in the provision of infrastructure, energy, employment generation and development of the real sector of the economy,’’ he stated.

The director noted that the Pension Reform Act, 2004 had enhanced the administration of pension by providing effective, efficient and transparent way of administering it in the Federal Public Service and the private sector.

According to him, 5.01 million employees have registered under the CPS in the public and private sectors.

He noted that the public sector, comprising the federal and state governments, had 31 per cent and 23 per cent respectively, while the private sector had 46 per cent.

He stated that the value of pension assets under the CPS, stood at N2.45 trillion as at Dec., 2011, with a monthly contribution of N20 billion and 30 per cent annual growth rate.

Ahmad said that the Federal Government had been remitting its employees monthly pension contributions into the Contributory Pension Account with the Central Bank of Nigeria (CBN).

According to him, N604.27 billion has been credited into the Account as at Dec. 2011, out of which N449.35 billion was remitted into various Retirement Savings Accounts (RSAs) of federal employees.

He stated that the federal government also paid N270.11 billion to its 48,587 retirees and deceased employees under the CPS, as at Jan. 31.

He explained that the proportion of the pension assets to Nigeria’s Gross Domestic Products (GDP) grew from 1.4 per cent in 2006 to 7 per cent in 2010.

Ahmad also stated that the CPS has simplified the process of payment of retirement benefits, through the issuance and implementation of effective regulations and guidelines.

“The regulation requires employees to start the process of accessing their benefits six months before their retirement, provides for necessary documentation, and the procedure for payment of benefits.

“This arrangement is to ensure smooth transition to retirement life and also ensure that the payment of benefits to retirees in the private sector had been regular and timely,’’ he said.