The new Retirement Savings Account (RSA) and the Multi-Fund Investment Structures of the National Pension Commission, would safeguard Nigeria’s pension fund, a top member of the Pension Operators of Nigeria, PenOp, has said.
Mr. Eguarekhide Longe, who is also a former President of PenOp, said in Lagos that the RSA, which has now hit N7.78 trillion, would be launched on July 1. According to him, the fund had been categorised into four parts namely: funds 1, 2, 3 and 4 for faster administration of services.
“The Acting Director-General of PenCom, Mrs. Aisha Dahir-Umar had in Uyo on May 3, disclosed the operations of the fund. According to her, young contributors will be categorised under Fund 1, while middle aged contributors will be categorised under Fund 2.
Contributors close to retirement from age 49 and above will be categorised under Fund 3, while retirees will be under Fund 4. She said, however, that the commission’s investment regulation allowed contributors to make alternative choices, but on formal request to Pension Fund Administrators, PFAs.”
Longe said the new multi-fund investment structures would handle challenges of pension administration nationwide. He informed that PenOp was worried about incidences of high rates of withdrawals from Voluntary Contribution Schemes,( VCs) saying that “PenCom has issued a circular on the VCs in November, 2017 to curb the incessant withdrawals because it negates the main purpose of such contributions.
Longe said the multi-fund investment structures would also be able to block leakages. “This will ensure strict adherence to anti-money laundering provisions and relevant tax laws,” he added.