PENSION Operators (PenOp) in the country on Thursday said
they were not paying retirees lump sums on their own discretion.
The Chief Marketing Officer CMO, of Pemium Pension Ltd, Mr
Kabiru Tijani, who spoke on behalf of the operators at the 2017
Annual Retreat, organised by PenOp in Abeokuta, said it was
untrue and a “ total misconception“.
The PenOp consists of all the Pension Fund Administrators
PFAs, in the country.
“PenOp is a non-governmental, non-political and non-profit
making body established to promote the operations of the
pension industry.’’
He said the bill seeking the provision of 75 per cent as pension
lump sum for retirees on retirement, as against 25 per cent
lump sum and 50 per cent programme, was partly due to the
Tijani, who spoke on “Benefit Administration Process and
Challenges’’ at the two-day retreat, said PFAs were never vested
with discretion to calculate lump sum.
He explained that the PFA’s had been using the template
handed to them by National Pension Commission (PenCom) to
calculate the lump sum each retiree was entitled to.
“The template also emphasised that the programme withdrawal
must be such that will guarantee 50 per cent of retirees’ monthly
salary as monthly pension payment on retirement,’’ he said.
The Executive Secretary of PenOp, Mrs Susan Oranye, said
that the country’s pension industry had experienced positive
pedigree shift.
She said the PFA’s had ensured safety of pension funds against
the belief that pension funds were a national cake.
The executive secretary said that PFA’s would continually
ensure the retirees access to pension aptly.
She urged Nigerians that were yet to participate in pension
schemes to do so, to have resources to fall back on at old age.
“Pension will always guarantee good life for Nigerians at old
age,’’ she said.
According to Oranye, only 7.3 out of 90 million working class
citizens are in the Pension Contribution Schemes CPS.
“It is from this 7.3 million working class that makes the pension
assets to hit N6.3 trillion.
“So you can image if half of the 90 million working population
are in the contributory schemes.”
According to her, the fund will be huge enough and can be
accessed to develop infrastructure that result to external loans.

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