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JUST IN:Step up Your Games PRA compliance, NECA, National Pension Commission tell employers

Step up Your Games PRA compliance, NECA, National Pension Commission tell employers..….CONTINUE READING>>>>>>

The National Pension Commission, PenCom, and the Nigeria Employers’ Consultative Association, NECA, have urged private sector employers to step up their compliance with the provisions of the Pension Reform Act, PRA, 2014.

NECA and PenCom lamented that several organisations have failed to fully comply with the Commission’s guidelines, blaming management’s ignorance and attitude, employees’ short sightedness as well as liquidity challenges as some of the factors responsible for non-compliance.

Speaking at an interactive session on the Contributory Pension Scheme, CPS, for the Organised Private Sector, OPS, organised by NECA and PenCom in Lagos, the Director General of NECA, Mr Adewale-Smatt Oyerinde, however said the private sector was committed to the success of the pension scheme in Nigeria.

He said: “Before 2014, life after retirement could be described as uncertain and unpredictable. However, with the Pension Reform Act 2014, the narration has changed significantly because no matter the efforts put into a system or process, there will always be room for improvement.

“Thus, following the enactment of the Act and with successive PenCom leadership, we have had a series of improvements and innovation in the administration of the Pension Scheme.

“For many of us that have been around for a while, you will agree with us that the circumstantial suspension of this interactive session few years ago has created a gap and deprived not only the private sector, but also PenCom the opportunity to get critical feedback that will help in further improving the operationalisation and administration of the Pension Scheme.

“The Private sector remains committed to the success of the Pension Scheme as long as our concerns are not only noted but also addressed expeditiously.”

On her part, the Director-General of PenCom, Mrs Aisha Dahir -Umar, represented by PenCom’s Commissioner for Technical, Dr Anyim Nyerere, said the programme was initiated to enlighten OPS on the current developments and challenges in the implementation of the Pension Reform Act (PRA) 2014.

According to her, “Obviously the pension industry is one of the fastest-growing financial sectors in Nigeria.

“This programme (the interactive section) was put in place to enlighten the organised private sector on the new developments and resolve some of the challenges facing the sector.

“The objective of the interactive session is to enlighten the OPS on the workings of the CPS and share thoughts on emerging developments in the Nigerian pension space.
10 million RSA holders

“As you are aware, the pension industry is one of the fastest-growing financial sectors in Nigeria. For instance, at the end of the third quarter of 2023, the number of retirement savings accounts, RSA holders , under the CPS stood at 10 million and the size of the Pension Asset Under Management, AUM, amounted to N16.76 trillion. Accordingly, the contributions of the OPS in this regard cannot be overemphasised.

“The Commission has continued to take giant strides towards ensuring the smooth implementation of the CPS through the revision of existing regulations and guidelines and the development of new ones. Specifically, the Commission deployed the Enhanced Contributors Registration System, ECRS, for the pension industry.
Data recapturing

“Following the deployment of the ECRS, the Commission also introduced the Data Recapture Exercise, DRE, which mandatorily requires all RSA holders who joined the CPS prior to the 1st of July 2019 to update their information with their respective Pension Fund Administrators, PFAs. Accordingly, the commission has consistently urged RSA holders to approach their PFAs for Data Recapture.”

She urged RSA holders yet to approach their PFAs for data recapture to do so.

She assured the OPS that the commission would continue to ensure robust social dialogue with NECA in the interest of all stakeholders under the CPS.

According to her, the commission will always support NECA to champion programmes that will ensure the successful implementation of the CPS in Nigeria.

Also, speaking, PenCom’s Head, Department of Compliance and Enforcement, Bala Babangida, said that compliance in the industry includes opening of RSA with a PFA by employees.

Mr Babangide added that employers must also ensure monthly deduction and remittance of pension contributions and provision of Group Life insurance policy for their employees.….CONTINUE READING>>>>>>

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