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Pension Operators Allay Fears On Pension Payment
The President, Pension Operators (PenOp) in Nigeria, Mr Eguarekhide Longe, has allayed fears by pensioners and retirees over the safety of their contributions and entitlements with Pension Fund Administrators (PFAs).
Longe told newsmen yesterday in Lagos that pensions deducted from public workers’ salaries and credited to their Retired Savings Accounts (RSAs) were safe.
He also assured retirees that their contributions under the Contributory Pension Schemes (CPS) would not be embezzled.
Longe explained that the National Pension Commission (PenCom), Pension Fund Custodians (PFCs) and PFAs had not deviated from their mandate of overseeing pensioners’ welfare and payment of pensions.
He said the operations of PFAs and PFCs were well regulated by PenCom and the Pension Bill of 2004 repealed by that of 2014.
“The 2004 bill repealed by that of 2014, Section 14 subsection 100 (1) says any PFA, PFC or other bodies that diverted pension funds, on conviction, is liable to an amount equal to three times of the amount diverted or not less than 10years’ imprisonment.
“Or both penalties, that is, amount equal to three times of the misappropriated fund and 10 years’ imprisonment,’’ he said.
Longe explained that the Accrued Rights (pension liabilities) was specifically for public sector workers had experienced some hitches, while the CPS which is for private sector works seamlessly.
He said the Accrued Rights was funded by the Federal Government by paying five per cent of monthly payroll into Retirement Benefit Bond Redemption Fund (RBBRF), which is domiciled in the Central Bank of Nigeria (CBN).
According to him, the RBBRF payment has been irregular since December 2014 when the Nigerian economy experienced a downturn.
Longe condemned the agitations by some retirees on the piecemeal payment of pension entitlements.
He said: “Now, if your total pension entitlement is N15 million and your RSA reads N3 million, do you think it would be wise to spread the N3 million as lump sum and pension before the N12 million is paid?
“It distorts the entire pension calculation of the retiree and this is the reason it is not done that way,’’ he said.