An official of one of the Pension Fund Administrators, (PFA’s), operating the Contributory Pension Scheme (CPS), told Punch that the federal government has not made its payments to the Scheme in two years.
The Pension Reform Act (PRAA) 2014, provides for a pension protection fund, for persons under the CPS.
The government is obligated to contribute to this fund through monies raised from a percentage of the total value of a month’s wage bill and returns from pension fund investments.
This payment is known as the minimum pension guarantee: “On the minimum pension guarantee, one of the key requirements is that the Federal Government must be making contributions as well, but it is not doing so yet. That is one of the challenges that we are facing, but the Pension Protection Fund has started receiving funding from the operators.
“I think this should be the second year of making the contributions and I know that PenCom has been engaging the government to start making its own counterpart funds but when that will start, we are not sure,” the official stated.
Figures from the commission revealed that N5.5 trillion. The total worth of the pension stands at 7.79 as at February 2018.
A Pencom official also disclosed to the aforementioned news medium that pension fund administrators (PFA’s), had earned profits of N2.2 trillion from pension contributions in 11 years. The Act also lists funding sources to include annual levies to be contributed by Pencom and the operators.
An official of one of the Pension Fund Administrators, (PFA’s), operating the Contributory Pension Scheme (CPS), told Punch that the federal government has not made its payments to the Scheme in two years.
The Pension Reform Act (PRAA) 2014, provides for a pension protection fund, for persons under the CPS.
The government is obligated to contribute to this fund through monies raised from a percentage of the total value of a month’s wage bill and returns from pension fund investments.
This payment is known as the minimum pension guarantee: “On the minimum pension guarantee, one of the key requirements is that the Federal Government must be making contributions as well, but it is not doing so yet. That is one of the challenges that we are facing, but the Pension Protection Fund has started receiving funding from the operators.
“I think this should be the second year of making the contributions and I know that PenCom has been engaging the government to start making its own counterpart funds but when that will start, we are not sure,” the official stated.
Figures from the commission revealed that N5.5 trillion. The total worth of the pension stands at 7.79 as at February 2018.
A Pencom official also disclosed to the aforementioned news medium that pension fund administrators (PFA’s), had earned profits of N2.2 trillion from pension contributions in 11 years. The Act also lists funding sources to include annual levies to be contributed by Pencom and the operators.