The revolving strength of the contributory pension scheme CPS bourgeon further to N12.66tr as at the end of June 2021 and just before the end of July, federal employees and retirees will get the 2.5% differential contribution to their CPS, outstanding since the inception of Pension Reform Act 2014.
The Director General, National Pension Commission Mrs. Aisha Dahir-Umar, while welcoming attendees to the 2021 Journalist Workshop with “Positioning The Pension Industry In The Post Covid Era” as the theme, in Lagos, said the growth in pension funds attest to the prudent and sincere management of pension funds by the operators and regulator.
Dahir-Umar said the consistent up tick is being spurred by the Commission robust regulatory policies and the investment policies created in the conventional and ethical spaces in the economy that continue to enhance investment returns and hedge the current low yields.
She comments, “The number of registered contributors under the CPS has grown to 9.38 million while fund assets have accumulated to N12.66tr as at 30 June 2021. The maintenance of a consistent growth trajectory continues to justify the Commission’s overriding investment philosophy of ensuring the safety of pension funds assets.” She was represented by head, corporate communications, Peter Aghahowa.
On the payment of the federal government approved outstanding differential of 2.5% to contributors, the head, contribution and bond redemption department, Abdulrahaman Saleem, said the process to begin immediate payment has been set in motion along with the payment of accrued pension rights up to December 2020 to retirees and these payments have been disbursed to Pension Fund Administrators for final settlement in the retirement savings account of the retirees.
The Director General, PenCom, Mrs. Aisha Dabir-Umar earlier in her welcome address, said the approval of differential employer pension contribution for FGN retirees and employees, a fallout from the increase in the minimum pension contribution foe employers from 7.5% to 10%, in line with section 4(1) of the Pension Reform Act (PRA) 2014.
Her comments, “These payments would undoubtedly, boost the RSA balances of the beneficiaries towards better retirement benefits. The settlement of these outstanding accrued pension rights of verified and enrolled FGN retirees would result in reversing a major challenge that has lingered since 2014. Also, the commencement of payment of the reviewed monthly pension contribution rate by the federal government is another significant step in ensuring compliance with the PRA 2014.”