Lagos - The Chairman, Pension Fund Operators Association of Nigeria (PenOp),
Misbahu Yola, on Tuesday said contributors took a bulk of the profits recorded
by the National Pension Commission (Pencom).
Yola provided an insight on the N3.7 trillion profit reported by Pencom in an
interview with the News Agency of Nigeria (NAN) in Lagos.
He said that part of the N3.7 trillion total pension fund profile were also
invested in listed equities at the Nigerian Stock Exchange, money market
instruments and government bonds.
Yola said that the funds was not idle, but were invested in dividend
yielding vehicles to increase savings of individual contributor’s in the
Retirement Savings Account (RSA) opened by the Pension Fund Administrators
“As the investments mature, the RSA of each contributor is credited with the
profits the units the amount in the Savings account purchased.
“That is why a contributor with N10, 000 in his RSA account can see
additional N1, 000 or more when the profit from the investment is added.
According to the Chairman, every contributor in the contributory pension scheme
is an automatic investor, as their contributions are used for investments.
He said that the operations of the new pension scheme had provided workers
with confidence and assurance on the safety of their retirement benefits.
“The contributor also knows how much he is expecting as lump sum and monthly
pension,” he said.
He said that paying potential and existing pensioners remain the primary
purpose of establishing the new pension scheme. -