As Nigerian workers joined the rest of the world to mark the 2014 ‘Workers’ Day’ on May 1, a significant point of the event was the reassurance that workers already enlisted in the nation’s Contributory Pension Scheme(CPS) through their Retirement Savings Account(RSA) should rest assured that they would have a successful retirement after their working life.
The import of this is greater confidence among Nigerian workers, increased productivity, and better employer-employee relationship and in all, enhanced economic growth for the country.
Pension Operators Association of Nigeria (PenOp) who coloured the May Workers’ Day in Lagos with their presence and education materials said the coming of the CPS following the Pension Reform Act 2004 was the best thing to have happened to Nigerian workers.
Susan Oranye, executive secretary of PenOp, who led the Brand Committee Members of the association on the march held at Onikan Stadium said the awareness campaign on this special workers day was to show their solidarity and un-shaking support for the Nigerian workers.
“PenOp is here to honour and support Nigerian workers, which is what the workers’ day is all about, and the underlying concern for all operators is for the workers to prepare themselves for that period when they would not be able to work again.
“We are here to appreciate them for all they are doing to sustain the economy; we are also here to tell workers to think of the future, by opening Retirement Savings Account (RSA).”
Oranye stated that the workers are indeed working hard, but they should also understand that after the work they still have bills to pay and how to pay these bills should be planned now that they are in active service.
“We are calling on the workers who are yet to embrace CPS to do so now, particularly that the industry has done exceedingly well given the short period of its existence.”
She disclosed that since the scheme started about nine years ago, about N24 .6 billion have been paid to over 84,000 retirees who contributed in the scheme and there has never been any story telling.
“This is what we are trying to make workers understand. This is a new dispensation, it is not like the old scheme where people line up, cry and beg for their money in retirement. The new scheme is really working and focused on workers. It is transparent, fully funded, safe and every worker should embrace it because it provides decent living during retirement,” she stated.
On recalcitrant workers who are yet to comply or employers who do not remit employees’ contributions, the executive secretary noted that PenOp and the industry regulator would continue to educate, encourage and make them realise that the fund is for their employees and they should consider it as a Corporate Social Responsibility(CRS) which helps in boosting the morale of workers.
“When employers provide secure future for their employees through pension, they would be happy to give their best, which will raise the bottom-line of the employer.
Idu Okwuosa, executive member of PenOp and Brand Committee who was also at the march said PenOp was there to kick off its brand campaign, with the theme: ‘Every Worker Deservers an RSA’.
“We have come to let workers know how important it is to have a retirement savings account to enable planning their retirement while they are working; so we are happy about it, as we have been waiting for it,” Okwuosa said.
On the New Pension Reform Act which has recently been passed by the National Assembly, Okwuosa noted that it would the industry players expand the market.
According to her, this would become easier as the New Act has provided opportunity to include organisations having three or more workers. Going forward, it will become compulsory to open an RSA for workers in that level of organisation, unlike the old Act that provided for a minimum of five workers. Beyond that, the informal sector and voluntary contributions are also highlighted there which also helps us to expand the market, Okwuosa observed.
“Another major plus in the new Act is the penalties on embezzlement of pension funds, so, going forward we would see more sanctions on operators that embezzle pension funds and also for defaulting employers who fail to comply with the law, Okwuosa assured.
The administration of pension in Nigeria has no doubt been enhanced with the passage of the PRA 2004 and the establishment of the National Pension Commission. Not only has the Act provided a platform for a more effective and efficient as well as transparent administration of pensions in the Federal Public Service and the private sector, but its implementation for over nine years had led to the establishment of a new industry that generated a pool of long term investible funds, which already had positive impact on the growth of the Nigerian economy.
However, the continued support of government as well as all stakeholders is necessary to ensure the full realisation of the objectives of the pension reform.
