Amaka Obiefuna.

The association of Pension Funds Operators of Nigeria (PenOp) has rejected a bill at the National Assembly that would, if passed into law, provide 75 per cent as pension lump sum for retirees; The bill has its second reading.

PenOp say the bill would affect the basic aim the new pensions scheme should achieve, it could also rob retirees the opportunity of keeping more money in their Retirement Saving Accounts (RSA).

Kabiru Tijani, Chief Marketing Officer of Premium Pension, while speaking at the 2017 Annual Media Retreat for National Association of Insurance and Pension Correspondents (NAIPCO) organized by PenOp in Abeokuta, the Ogun State capital, says provisions in the bill has scaled its second reading and if it succeeds it would not be in the interest of the contributors.

He denied the allegation that the Pension Funds Administrators (PFAs) computes retirees’ benefits using their description, insisting that operators follow strictly template set by the National Pension Commission (PenCom).
According to him, the template set by PenCom set was the same template the PFAs is using in calculating what somebody will take as lump sum, monthly pension or accrued pension.
“There is no issue of description at all, what PFAs use is the same template set by PenCom, the template is in such a way that if apply to a retiree, it will automatically does the computation by itself. The template is very objective. There is no descriptive interpretation, if such occurs, PenCom will not take it”, he assured.

Executive Secretary of PenOp, Sussan Oranye in her remarks reassures the association commitment to ensuring security of the pension funds.