The Association of Pension Fund Operators of Nigeria and the Joint Committee for Establishment and Civil Service of the Senate and House of Representatives on Pensions have agreed to review the lump sum payable to retirees.
The agreement was contained in a statement Monday at the end of the third annual PenOp-NASS retreat in Lagos.
Lawmakers and pension operators have said the lump sum for retirees needs to be revised to address issues of adequacy and contributor agitation.
the Nigeria News Agency reports that the National Pensions Commission, under the current pension reform law, stipulates that pension managers pay retirees 25 percent of their total retirement savings account upon retirement.
Both parties decided that a survey should be commissioned by PenOp to be managed by a third party to assess the level of satisfaction with the program.
Stakeholders insist that the National Assembly should establish a task force to engage state governments and find innovative ways to help state government compliance.
Both sides said huge public information was needed to encourage compliance among state governments to expose them to the benefits of the contributory pension scheme.
They noted that the state government should also be trained on how to leverage retirement assets to facilitate infrastructure development.
They decided that pension operators should take the issue of documentation seriously to ensure that retirees do not experience unnecessary stress accessing their benefits.
Operators and lawmakers noted that the pension sector has continued to record impressive growth across all key performance indicators since the 2004 pension reform.
They said: “Pension assets have grown at an impressive rate since its inception, with pension assets standing at $ 12.4 trillion while the number of contributors stood at 9.4 million as of April 30. ”
According to them, the pension sector, in addition to being beneficial for contributors, has played a central role in the economic growth and development of the country.
Key players noted that although the program has made several giant strides in its 17 years of operation, there are still so many issues to be addressed for the sector to create more value for all stakeholders.