BENIN CITY – An official of the National Pension Commission (PenCom), Opeyemi Abodunrin has called on Workers in Edo State to embrace the Contribution Pension Scheme (CPS), which according to her, is the best form of pension with retiree getting their benefits immediately after retirement.
She made the call as a guest speaker while delivering a lecture at a-one-day seminar with the theme: “General Overview of the Contributory Pension Scheme, its benefits, challenges and the legal framework” organised by Edo State Council of the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC).
Speaking on the topic “Overview of the contributory pension scheme” Abodunrin said contributory pension scheme is the best for workers and commended the state government for chosen this scheme for workers in the state.
“For the scheme to be safe, have ensured separation of function of Pension Fund Administrators (PFAs) and Pension Fund Custodian (PFCs), guaranteed by parent company of the PFCs, guidelines and restriction on investment, risk rating of investment”.
Abodunrin said that as part of the objectives of CPS, all workers receive their retirement benefits as at when due; ensure transparent and efficient management of pension funds; empower the workers; control over Retirement Savings Account (RSA); promote savings culture; establish strong regulatory and supervisory frameworks through investment, accountability and security of funds.
In her second paper titled: “Overview of Edo State Contributory Pension Scheme Law 2010”, Abodunrin said the law ensures that every person who has worked in the public service of the state receive his or her benefits as and when due; assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age.
She said the law ensures that employees contribute minimum of 7.5 percent of the employees’ total monthly emolument; while employers contribute 7.5 percent of his/her total monthly emoluments.
The Chairman of the Nigerian Labour Congress (NLC) Edo State Council, Comrade Emmanuel Ademokun delivering in an address said pension is a necessary end that every workers is looking forward to in his/her career.
This, he said accounted for the organized labour in Edo State to remain passionate in its bid to ensure that the transition from the old pension scheme to the contributing pension scheme is driven by knowledge of the scheme in order to reduce friction and add value.
Speaking further, the NLC chairman said participant should see the seminar as an avenue to ask fundamental questions that would enhance their quality in the new scheme.
“It is important to inform you that our report on the selection of the PFAs is ready, any time soon, we shall be submitting same to the Comrade Governor.
“We have also planned to have a small monitoring team that would be on ground when the scheme commences; this team will ensure that frictions in the operation of the scheme are reduced.