PenOp urges employers to allow workers maximize goodies in PRA 2014

The Pension Fund Operators Association of Nigeria (PenOp) has called on employers to embrace the Contributory Pension Scheme (CPS) to enable their workers enjoy the enormous benefits provided by the Pension Reform Act 2014.

The Executive Secretary PenOp, Ms Susan Oranye, stated this in a statement made available to Inspen, stressing that the PRA 2014 was enacted to ensure workers have comfortable lifestyles when working and at retirement, stressing that this laudable objectives can only be achieved when employers enroll their employees in the scheme.

She note that benefits such as withdrawal of 25 per cent due to disengagement from service; prompt payment of retirements benefits and more which were lacking in the old scheme are now enjoyed by subscribers to the new scheme.

She said in the first quarter of this year, N4.44 billion was paid as death benefits to the next of kins of 1,450 deceased employees, stressing that N77.18 billion had so far been paid to the next of kins of 27,321 deceased employees from inception to the end of the first quarter of 2015.

Oranye said in line with the provisions to cater for workers who were disengaged, 96,002 of them, were last year, given 25 per cent of their Retirement Savings Account (RSA) balances amounting to N20.72 billion.

She noted that of the 96,002 persons, 91, 3555 were from the private sector while 4,647 from the public sector.

“In the third quarter of 2014, the National Pension Commission (PenCom) granted approval for the payment of 25 per cent of RSA balances amounting to N20.72 billion to 96,002 RSA holders who retire before the age of 50 years and having stayed for at least four months after retirement without securing a new employment.
Out of this number, 91,355 (95.16 per cent) were from the private sector and 4,647 (4.84) from the public sector,” she said.

Speaking on other benefits to be maximised by workers, she said: “The Pension Reform Act 2014 reviewed upwards, the minimum rate of Pension Contribution from 15 per cent to 18 per cent of monthly emolument, where eight per cent will be contributed by employee and 10 per cent by the employer. This will provide additional benefits to workers’ Retirement Savings Accounts and thereby enhance their monthly pension benefits at retirement.

“The Pension Reform Act 2014 has reduced the waiting period for accessing benefits in the event of loss of job by employees from six (6) months to four (4) months. This is done in order to identify with the yearning of contributors and labour.

“The Act expanded the coverage of the Contributory Pension Scheme (CPS) in the private sector organisations with three employees and above, in line with the drive towards informal sector participation.”