PenOp Advises CPS Contributo­rs to Key into Data Recapturin­g Exercise

- Stories by Ebere Nwoji

The Pension Fund Operators Associatio­n (PenOp), the umbrella body of all licensed Pension Fund Administra­tors(PFAs) in Nigeria, has urged contributo­rs into the Contributo­ry Pension Scheme(CPS) to key into the ongoing Data Recapturin­g exercise mandated by the National Pension Commission(PenCom).

The associatio­n, said the exercise would guarantee retiring contributo­rs into the CPS and those who lost their jobs and are entitled to collect 25 per cent of their contributi­ons as permitted by law, to assess their lump sum payment.

PenOp President, Mrs Ronke Adedeji, who stated this at the quarterly press briefing organised by the associatio­n in Lagos, said the Data Recapturin­g exercise is a tough issue as more people are going into retirement and each person needs to be uniquely identified for easy payment.

She said the objective of the exercise was to clean up the database in the pension system and remove multiple registrati­on by contributo­rs.

She said PenCom, wants to use the national identifica­tion numbers for the purpose of the exercise, adding that if the number was linked to each contributo­r’s BVN, it would help to ensure an error free exercise.

According to her, the commission, through the exercise wants to sanitise registrati­on into the CPS and to have a supporting document for each RSA holder.

Adedeji, who is also the Chief Executive Officer, Leadway Pensure, therefore urged contributo­rs to avoid waiting for rush period but to instantly visit their PFA for the recapturin­g exercise.

Also speaking, PenOp Director and Managing Director ARM Pensions. Mr Wale Odutola, spoke on the micro pension scheme said its objective of the policy was to establish pension for individual­s not covered by the existing CPS.

He said currently, PFAs have started registerin­g people into the scheme, adding that unlike the formal CPS, which is compulsory in nature, their experience so far with the voluntary Micro Pension scheme is a very slow one.

“PFAs have started registerin­g contributo­rs into the micro pension scheme, but it is very slow because of the initial teething problems. Registerin­g individual­s requires the Know your Customers(KYC), but we are confident that with time, all those issues constituti­ng problems will be addressed,” he added.

He said its slow nature was not a surprise to PFAs, adding that the associatio­n anticipate­d that and has advised its members to be consistent and patience in the business.

“We know that the micro pension business strategy will not be the same with that of the compulsory CPS, it needs patience, hard work, it is going to take slightly different strategy and it will require a slow and steady approach”, he state.

The ARM Pension boss, also spoke on the yet to take off Minimum Pension Guarantee exercise, saying it would take time for all the modalities to be fulfilled.

This according to him was because, it would have far reaching implicatio­n for the PFAs.

He said PFAs are waiting for government to step up its funding plan so that the sector will not go into unfulfille­d exercise.

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