The protection of pensions’ assets and payment of retirement benefits when due would always be the paramount objective of the federal government, President Goodluck Jonathan said on Monday.
Speaking at the two-day World Pension Summit for Africa, which began on Monday in Abuja, Jonathan said the mission of the summit was to create a platform to discuss retirement issues with a plan to ensure that pension funds in the country serve their real purpose of helping retirees prepare for the future.
Hosted in Africa for the first time with the theme, Shaping The Future, the summit is expected to produce innovative ways of utilising the funds in line with existing regulations – to design safe responsible instruments that would ensure that Nigerian retirees truly get the benefits of their long term contributions.
Speaking at the opening session, he noted that from a deficit of about N2tr ($12.9bn) in 2004, the National Pension Commission (PENCOM) has been able to accumulate total pension assets of over N4.21tr ($27.2bn) by March 2014, and may grow to N16tr within 20 years with additional reforms.
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“In 2004, the Pension Reform Act was enacted by the Olusegun Obasanjo administration to address the recurring challenges experienced in the administration of pension and enhance efficiency the system,” Jonathan said.
“This reform initiative established a contributory pension scheme for the public and private sectors. In 10 years, a sustained policy innovation and meticulous management has facilitated confidence and credibility in our pensions system and administration.”
President Jonathan recently signed the Pension Reform Bill 2014 into law, consequently repealing the Pension Reform Act 2004.
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Mrs Chinelo Anohu-Amazu, the acting director-general PENCOM, said that the commission was doing everything possible to ensure effective management of pensioners’ funds in its custody.
Anohu-Amazu said any story relating to embezzlement of pension funds has nothing to do with the contributory pension system because the system in place has made this impossible to fraudulently access the funds.
Mr Eric Egginu, chairman, World Pension Summit, said about 55 African countries would be attending the summit which will end on Tuesday July 8, 2014.
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2 comments
This is good news for Employees if all employers will adhere it.
I will also like to know the effective date.
NASS has passed 2014 budget and the President has equally signed it and hands it to the Minister of Finance for immediate implementation. The Pensioner dies everyday waiting for this pension arrears. Please, Government should do something to alleviate the suffering and pains going through by this pensioners. God help Nigeria.