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Pension contribution hits N59bn

Posted by By PETER ANOSIKE on 2008/04/16 | Views: 588 |

Pension contribution hits N59bn


The National Pension Commission has recorded N59 billion from the contributions of workers to the scheme.The Director General of the Commission, Alhaji Muhammadu Ahmad revealed this at the verification and enrolment exercise of the workers of health and tertiary institutions in Lagos.

The National Pension Commission has recorded N59 billion from the contributions of workers to the scheme.The Director General of the Commission, Alhaji Muhammadu Ahmad revealed this at the verification and enrolment exercise of the workers of health and tertiary institutions in Lagos.

He said that with the huge capital now in the coffers of the commission, retirees would no longer have the problem of receiving their pensions.

He revealed that the commission paid the sum of N10 billion as pension between July and December last year, adding that annually, the Federal Government sets aside five percent of its revenue for pension benefits, and that the commission now has sufficient capital to pay those who would retire between now and 2009.

According to him, about N1.8 trillion would be needed to pay pensioners between 2009 and 2037.
'Since 2004,Federal government has been religiously paying its quota of the contribution and at the same time deducting those of its workers but where we are having problem is the private employers. However, we have decided that any company in the private sector that defaulted would be dealt with, "Ahmed said.

On the importance of the verification exercise, he said that it would facilitate the payment of the retirees without delay, adding that after the verification and enrolment, the Federal Government would give bonds to the retirees who would then pay them into their chosen pension fund administration account.
He said that it would then be left between the pensioner and the fund administrator to work out the modalities for payment.

'This is the easiest pension scheme ever in the history of the country. If the bond is paid into the account of the PFA, it would now be left between the pensioner and the fund administrator to determine whether he would be receiving his pension every month, quarterly or whether to take 50 percent of the total money to go into business," Ahmad said.

The verification exercise began in Abuja in February and from there to Ibadan and now in Lagos.
It was organized for workers who are to retire between 2008 and 2009.The workers were required to bring their letters of employment, pay slips, birth certificates and other relevant documents from their offices for the exercise.

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