Contributory pension assets rise by N340bn, hit N13.76tn

Contributory pension assets rise by N340bn, hit N13.76tn

- in Featured

The total assets under the Contributory Pension Scheme gained N340bn in two months and rose to N13.76tn as of the end of February.

 This was contained in the National Pension Commission’s latest report, titled ‘Unaudited report on pension funds industry portfolio for the period ended 28 February 2022; Approved Existing Schemes, Closed Pension Fund Administrators and RSA funds (Including unremitted contributions @CBN & legacy funds).’

The report was obtained by our correspondent on Friday.

The funds, which ended December 31, 2021 at N13.42tn, rose to N13.61tn as of the end of January 2022.

The data showed that N8.51tn of the total funds was invested in Federal Government securities, comprising bonds and Treasury Bills, in February.

Other investment portfolios where the funds were invested include domestic and foreign ordinary shares; corporate debt securities comprising corporate bonds, corporate infrastructure bonds, corporate green bonds, and supranational bonds.

PenCom also disclosed that the total number of workers with Retirement Savings Accounts rose slightly to 9,589,721 as of February ending from 9,529,127 as of end of December 2021.

The Pension Reform Act, which led to the CPS, was inaugurated in 2004.

It provides a contributory arrangement in which the employer and employee contribute to the workers’ RSAs.

Also, the Pension Fund Operators Association of Nigeria has said the CPS is helping Nigerian workers to save for retirement and provide funds for infrastructure development.

The operators urged workers to increase their statutory deductions, noting this would enable them to raise their aggregate savings balances over time.

In a statement, the association said, “It is also pertinent to note that the Contributory Pension Scheme in its current state has in no small way fostered a savings culture in Nigeria. Prior to the enactment of the Act, Nigeria did not have large pools of domestic savings.

“Many Nigerians do not have any other form of savings, except through this contributory pension scheme. What we should be doing as a nation is to encourage more of these savings rather than looking to dismantle the system.

“This is probably the only form of savings most Nigerian workers are able to put aside for their retirement years.”

PenOp also advocated consistency and discipline in the contributions, adding that this would remove the need for any large lump sum payout at retirement.

Copyright PUNCH.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like

MyHome 3.1.69 Nulled – Real Estate WordPress Theme

Download Free MyHome Real Estate WordPress Nulled ThemeForest