7.34 million workers join Contributory Pension Scheme

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The number of workers that signed to the Contributory Pension Scheme rose to 7.34 million at the end of the 2016 financial period.

The National Pension Commission said this in a report obtained by our correspondent that the figure rose from 6.39 million at the end of 2014 to 6.88 million in 2015.

The commission also disclosed that the figure was 5.39 million in 2012 before rising to 5.91 million in 2013.

The Pension Reform Act was enacted to provide a contributory scheme for the payment of retirement benefits of employees in both public and private sectors.

The Act mandates every employee to open a Retirement Savings Account in their name with any Pension Fund Administrator of their choice and notify their employers.

Employers, according to the law, are required to deduct eight per cent of the workers’ monthly emolument and add another 10 per cent, which should be paid into each employee’s RSA not later than seven days after the salary is paid.

The Managing Director, NLPC Pension Fund Administrators Limited, Mr. Wale Kolawole, said that the CPS was established to provide improved life for Nigerians in retirement.

He observed that in developed countries, old people knew that at the end of the month, they would not need to rely on friends, relations and their children to survive.

Kolawole said it was relevant for all employers to embrace the CPS, adding that the thought of having a pension benefit would encourage more workers to retire early.

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