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The Association of Pension Desk Practitioners of Nigeria (APDPN) has appealed to the Federal Government to mandate employers to remit their employees’ pension contributions to their Retirement Savings Account (RSA).
The Director of APDPN, Mr. Chris Egbu, made this appeal in Abuja at the 2019 Annual Pension/Admin Conference with the theme “Best Practices in Pension Administration.
Egbu stated the need for more effective enforcement approach to ensure that defaulting employers remit their employees’ contributions promptly.
He said that failure of some employers to remit their workers contributions had made it difficult for them to access their money after retirement while expressing the worry that some state governments were yet to subscribe to the contributory pension scheme.
“Some state governments have not subscribed to the contributory pension scheme while workers on their part did not care at the attitude of the government to such issues as long as they get their monthly pay. They don’t deem it fit to be concerned with what may happen after their retirement.
“For some, their money is being deducted as the pension act says that the employer brings 10 per cent and 8 per cent will come from the employee.
“Most people will deduct the employees’ own and the employer will not add his own and still will not remit what was collected to the Pension Fund Administrator (PFA).
“So, you see a circumstance at the end of the day where somebody retires and his five years pension has not been remitted and he goes to PFA to collect money only to be told by administrator we don’t have your money,’’ Egbu noted.
According to him, the challenges of achieving best practices lies in enlightenment, hence he advocated increased enlightenment towards achieving best practices in pension administration in the country.
He noted that increased sensitisation of pension desk officers is critical to enable them guide employees’ on the right things to do to be free from difficulties accessing their pension after retirement.
On her part, Nafisah Muhammad, Head, Business Development and Relationship Management, Sigma Pensions Limited emphasised the need for pension administrators to put in place structures that would enable workers achieve retirement in comfort.
“Sigma as a pension administrator has demonstrated greater commitment by going through the processes of opening accounts and follow-up with employers to ensure that remittances come in correctly.”
“Pension administrators must ensure that invested pension funds are safeguarded so that at the point of retirement people get their payments due to them,” she advised.
