Many RSAs unfunded- Trustfund Pensions
Many Retirement Savings Accounts (RSAs) are unfunded due to the economic situation in the country.
This was disclosed by the Head of Customer Relations of Trustfund Pensions Limited, Rachael Obi, during the company’s 2019 Retiree Forum held in Abuja yesterday.
“We have a situation where, especially those in the private sector, they are not remitting. When you tell them, they will tell you that business is not moving, so they are not able to pay. We are having unfunded accounts; a lot of them unfunded,” she said.
The pension expert advised prospective retirees to be conscious of the balances in their RSAs and ensure that their employers are up to date in remitting their retirement contributions for seamless pension payment at retirement.
She said retirees have a good cause to smile with the introduction of pension enhancement by the National Pension Commission.
The North Central Regional Manager of Trustfund Pensions Limited, Esuesiri Oshodi, said retirees are concerned with upward review of pension considering the recent review of the minimum wage.
“They think it should affect them. We agree it should affect them. The National Pension Commission is looking into it. In December 2017, the first set of people enjoyed enhancement of their pension. So, we expect that anytime from now, it will be enhanced again,” she said.
She urged all RSA holders to update their data in compliance with Federal Government’s directive on data recapture.
The Managing Director of Access Pension Fund Custodian, Tony Nwume, said the contributory pension scheme has been an improvement from the old defined benefits scheme.
Nwume regretted that some people still confused the contributory pension scheme with the old scheme, adding that the two are far different.
“The difference is that you earn your pension from what you contributed. A lot of people still mix it up from the previous one where there is an amount that is defined for you,” he said.