Lump sum payment to retirees for review

Operators Association of Nigeria (PenOp) and the Joint Committee for Establishment and Public Service of the Senate and House of Representatives Committees on Pension have agreed to review lump sum payable to retirees.
The agreement was contained in a communique on Monday at the end of the third annual PenOp-NASS retreat in Lagos.
The lawmakers and Pension Operators said the retirees’ lump sum needed to be reviewed to address issues of adequacy and contributors’ agitation.
The National Pension Commision, under the current Pension Reform Act stipulates that pension managers pay retirees 25 per cent of their total Retirement Savings Account (RSA) upon retirement.
The two parties resolved that a survey should be commissioned by PenOp to be handled by a third party to gauge the level of satisfaction with the scheme.
Stakeholders insist the National Assembly should set up a task force to engage state governments and come up with innovative ways to help drive compliance by state governments.
The two parties stated that huge public enlightenment was required to drive compliance amongst state governments to expose them to the benefits of the Contributory Pension Scheme (CPS).
They noted that the state government also needed to be educated on how to leverage pension assets to facilitate infrastructural development.

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