It is becoming apparent that good retirement plan for all Nigerians remains one of the primary objectives for Stanbic IBTC Pension Managers Limited, having channelled efforts organising emplyers forums, as well as disbursing over N279bn on retirement from 2006 till date.
Retirement remains a critical aspect of human life that should be given complete attention if any employee or employer is aspiring to be financially independent in future.
The law in Nigeria mandates every employers to remit pension deductions in the workers’ RSAs within seven days of payment of salary. The importance of this, is that employee will have enough to use at old age.
It therefore, behoves the employee to speed up the opening and funding process of a pension account to avoid issues of retiring without getting the desired pension benefits.
Although, many Nigerians are still under the illusion that the retirement and pension system in Nigeria is corrupt, perhaps due to some alleged reports of fraud seldom associated with key players in the sector.
Against that backdrop, reliable source reveals that for the past 13 years of inception of the Contributory Pension Scheme (CPS), it has not recorded any form of fraud in the sector.
As a matter of necessity, issues bordering around retirement and pensions call for proper sensitisation and public awareness, of which Stanbic IBTC is spearheading that course through it Employers Forum all over Nigeria.
The Stanbic IBTC Employer Forum which was held recently in Lagos had taken place in other key cities in Nigeria, a forum that seeks to redefine and strengthen the retirement system in the country.
The one held in Lagos was the fifth edition of the forum themed “Partnering to deliver excellent pension administration services.” The forum spurred Stanbic IBTC to express its desire for Nigerian pension industry to live up to its billing, while increasing participation in the CPS.
Oladele Sotubo, Executive Director, Investment, Stanbic IBTC Pension Management Limited disclosed at the forum that the company has over N2.19tn assets under management, and has paid over N279bn to its retirees since 2006.
Legally, an employer is mandatorily required to open a temporary RSA for any employer who fails to do so three months after employment.
“Employers have the key to unlock the sustainability of the pension scheme, and that it was necessary to engage them on how their role would impact on the pension scheme.”
Sotubo explained that the firm, the forum was part of its strategic approach to engage industry stakeholders on ways to strengthen the pension scheme in Nigeria.
He added that employers must demonstrate commitment in terms of ensuring their employees had Retirement Savings Accounts (RSAs), and funding the accounts through regular remittances.
Sotubo stressed that there is a clear need to ensure rapid growth of the CPS by increasing its uptake by Nigerians, adding that employers are critical stakeholders in its successful implementation, especially in ensuring enrolment and compliance.
“Without these two elements, the entirety of the pension scheme would lack purpose.”
With Nigeria’s pension system already having some level of potentials with enough promises and benefits, which all stakeholders sit up by getting more committed.
According to Lanre Ogedengbe, an official at the National Pension Commission, the key players in the industry including the employers, operators and regulator, should know their roles.
He said if the relevant stakeholders understand their roles and get committed to them, an excellent services deliverable is expected