By Ismail Abdulaziz
In the next few days a new administration would be elected by Nigerians with various expectations to better their lives, more especially those that have served and retired in the public and private sector.
Retirees in Nigeria have not received the desired attention of various administrations, making them to face an uncertain future.
This election is therefore an opportunity to usher in an administration that is friendly and with a human face that will give priority and change the fate of retirees for the better.
The Contributory Pension and Happy Retirement Advocacy (COPEHRA) is a Non-Governmental Organisation concerned about the fate of retirees in the country.
It has been advocating sustainable and happy retirement by creating awareness and guiding individuals in public and private sectors, as well as artisans on the value of saving through the Contributory Pension Scheme (CPS) ahead of retirement, to avoid old age poverty.
The organisation is focussed to having reliable and stable retirement through a contributory pension scheme that upholds the core principles of transparency, accountability, participation and enlightenment.
At a recent campaign and engagement with the media, COPEHRA spoke on the need for politicians aspiring to take the reign of leadership by May 2023 to make clear statement on the fate of retirees in the country.
‘’As we countdown to decision dates, Presidential and Gubernatorial elections, to determine those in the helm of affairs of our country for the next four years, we will like to use this opportunity to bare our minds on a very vital concern, which is setting an agenda for pension administration.
‘’One common element of the mandate of all the presidential candidate is economic boost. We are here to emphasize that pension is a major factor to the well-being of any society.’’
The organisation stressed that pension plays very important role in national development.
‘’The importance of sustainable pension to a country cannot be overstated. Pension guarantees financial security for retired workers who have served the country, and generally boost the economy.
‘’It brings equality and general wellbeing by ensuring that the weak and vulnerable have ready funds to take care of their day-to-day expenses after retirement from active service to the fatherland.’’
It suggested that the incoming administration should fashion a country specific policy and approach that would be in line with worldwide accepted norms in pension administration.
‘’The dominant pension scheme in Nigeria is the Contributory Pension Scheme. This pension scheme is contributory, fully funded, privately managed, with third party custody of the funds and assets and based on individual accounts.
‘’It ensures that everyone who has worked receives his/her retirement benefits as and when due.’’
The COPEHRA, therefore, encouraged frontline contenders in the elections to give priority to pension administration in the country.
‘’We take solace from their antecedence that all the frontline contenders made efforts to make laws for the reform of the pension sector when they were in charge of the helm of affairs in their respective jurisdictions.
‘’While Federal Government leads in the pension reform implementation, it is noted that Lagos State leads other states in Contributory Pension Scheme implementation.
For the working class to enjoy the benefit of pension after retirement and for an inclusive participation, the organisation called on all workers in the informal and semi-formal sectors to key into the Micro Pension Plan.
It noted that this would expand the implementation of the CPS to the informal sectors such as low income earners, self employed, Small and Medium Enterprises and artisans.
‘’We as an NGO wish to note and congratulate the hardworking National Pension Commission staff and management, the operators, for continuous reform and vigilance to safeguard the largest quantum of funds specifically set aside for payment of pensions in Nigeria.
‘’We call on states to key into this noble scheme for the happiness of their retirees. Most states that key into the CPS and have their funds managed by registered operators, do not owe their pensioners.
‘’We also call on entities that have issues with the CPS to look for solutions inside the scheme and not outside— How can you leave where there are funds ready for payment and then move to where loans have to be taken before pension payment?’’
They advised the incoming administration to urgently address the agitations by some contributors to the scheme.
‘’We call on the incoming Federal Government of Nigeria to increase the employer contributions for Police by 100% to ensure their Retirement Savings Account (RSA) is robust enough after serving their country in such critical sector.’’
It also suggested the setting up of machineries for the consideration of a second pension pillar in conformity with World Bank standard, in order to increase protection against retirement poverty.
‘’We also noted that the CPS still has a long way to go in addressing issues such as perception of employees and employers to the scheme, non or late remittance by employers.
“This reduces the effectiveness of the scheme to generate enough investable funds for the RSA owners. More awareness is needed for both employers and employees.’’
As the new administration comes to power, COPEHRA called for more sensitisation, regular reviews of regulations to adapt to changing times, enforceability of existing regulations and uniform applicability of pension laws and regulations.
‘’We use this opportunity to urge all candidates in the upcoming elections to bear upon their agenda, the need to work towards a more adaptive and inclusive Pension Administration that is all inclusive and proactive.’’
According to a 2014 report, pension funds significantly impact the financial development of underdeveloped countries. A one per cent increase in pension fund assets can promote corporate governance, information disclosure and transaction efficiency.
These are some of the advantages that Nigerians and the government can benefit from a proper, standardised pension administration that can be fully exploited to the benefit of retirees and the public in general.
