The National Pension Commission (PenCom) is living up to its billing as the vehicle for revolutionising the pension industry and making it easy for retirees to have unfettered access to their pensions as soon as the need arises.
Recall that for years, developments in the pension space have remained unsavoury despite attempts by the Federal Government to stabilise the sector and create an atmosphere for retirees to enjoy a better and fulfilling life after years of contributions to the country’s development.
With the obvious failure of the past endeavour under the Defined Benefit Scheme (DBS), the Contributory Pension Scheme (CPS) was introduced aimed at flushing out the ills of the past.
Despite efforts of the government in this direction, the system, though working according to the law, agitations by some contributors under the scheme appear to be giving it a semblance of a failed project.
The reason for this is not far-fetched. Since its inception about 20 years ago, some contributors have failed or, rather, are unwilling to understand why the scheme was set up in the first place and how it is expected to work.
Why the Federal Government’s intention is to ensure financial stability for retirees at the end of their working life, some contributors see it as another form of financial institution wherein they can save for some time then withdraw part or all what they had contributed.
Some others, who fail to understand the method of arriving at what is due to them as a monthly pension, have also complained harshly about the scheme.
Amid the controversy, some experts have attributed the misunderstanding to poor awareness and the harsh economic milieu.
Some Retirement Savings Account holders, for instance, find it difficult to live with the fact of having so much money somewhere but paid a meagre amount monthly as a pension.
Although the money truly belongs to them, they have, however, failed to realise that the system is being run under the Pension Reform Act 2014.
While the agitations have lasted over the years, leading to resistance by some institutions to continue with the scheme, recent developments have revealed a deliberate act by the new management of the regulator, the National Pension Commission (PenCom), to engender an understanding to reform the sector for the benefits of retirees, government, the economy and the country.