The pension ACT gives backing to Pension fund administrator (PFA) for a mandatory pension contributions scheme.
The launching of the Micro Pension Plans by President buhari have broaden the scope of fund administrators in Nigeria.
This is wake up call for the sleeping giant in us, through the right institution and political will it be a success.
Prior to the introduction, it was Private and Public company or agency’s that are mandated by the ACT to contribute. The private and public company or organization make up of only 10 to 20℅ of Nigeria workforce.
With the introduction of the Micro Pension Plans, the Independent and Dependent contractor’s e.g Lawyers, Doctors, Engineers, Mechanics, Okada riders, Traders e.t.c. can access it.
The Micro Pension Plans is workable, good and Provide a guarantee for retiree/ future .
When it is activated you can start by;
- Open account with a bank
- You can contribute daily, weekly, Monthly or whatever you earn money.
- It is flexible you can contribute as much as you want.
- After three months you can withdraw on contingent basis but only 40℅ of what you contributed.
- You can have access to 40% of what you contributed but the 60℅ will be kept until you are 65 years above.
- As a civil servants you can do both the mandatory or the Micro Pension plan.
- Any Person working in Nigeria from the age of 18 years is eligible to contribute
There are quite a numbers of human flaws, which must be dealt with to strengthen the institution for effective implementation. e.g the Pension Board unlike the NSITF board should be inaugurated to check the activities of the agency, The inauguration of the the Pension Board will facilitate constant reviewing of Pension Plans every 5 (five) year.
Let PFA be rated like Banks to make them be on their toes. The delay in payment of retiree should be checked.
Let Penalized delayed in Pension activities to serve as deterrent to others.
Policy and management experts believed the launching is commendable, it will serve as a recipe for employee.
Aggressive sensitization should be done.
Local PFA should be encouraged in each state and LGA this will facilitate contributions from the 70% Nigeria workforce .
If this is done; It will creates Employment, it will enhance investment in capital and money Market and this will boost investment and infrastructure development.
Lagos, Kaduna, Delta etc are doing well in the mandatory Pension scheme, as a Deltans I hope the Delta State Government will lead also in the Micro Pension Plans.
This article was written by Frank Dikirie, a Management and Policy Consultant.