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B N W: Biafra Nigeria World News |
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New pension scheme takes off AugustTHE Director-General of the National Pension Commission (NPC), Alhaji Ahmed Muhammed, has said the implementation of the contributory pension scheme would take off in phases next month. Muhammed told labour leaders in Abuja during a one-day workshop on the Assessment of the New Pension Act and its Implications for Workers that �the scheme is taking off in phases so as not to disrupt the existing ones in the private sector. �But those who want to satisfy the minimum requirement will be allowed to co-exist with the new scheme,� he said. According to him, the scheme will take off with contributions from civil servants while workers in the private sector will join after the modalities for their involvement have been spelt out. He said contrary to fears a minimum of 25 per cent of the total contributions could be withdrawn as gratuity provided the remaining money in the account was enough to pay other participants at least 50 per cent of the current salary as monthly pension, Muhammed said the same contributions could also be withdrawn en bloc on losing a job that extended beyond six months. He observed that the new Act had not reduced the retirement age to 50 years and stated that it provided for pension to be paid at the attainment of that age. The DG, however, added that workers could only draw their pensions at an earlier age if their employment contract provided for it. He said already the commission had opened an account with the Central Bank for every civil servant, adding that a custodian would be appointed by the Pension Fund Administrator (PFN). �The commission will put in place a more comprehensive framework for the scheme by ensuring that on no account will the scheme be monitored by an administrator rather he will appoint a custodian to manage the scheme,�� he said. He said the commission would soon develop a data bank for civil servants to enable it monitor the accounts of workers. He said the advantage of the scheme was that it was an individual account and contributors were free to move their accounts to another location on transfer or changing employment. Speaking newsmen on his expectation of the workshop, NLC President Adams Oshiomhole said that labour would be able to take its position on aspects of the Act which were positive for the workers. �It will enable us identify the challenges for unions and develop an action plan that will enable unions maximise their impact in the operation of the positive aspects,� Oshiomhole said. He added that labour would be able to identify the contestable elements of the Act and specific ways to pursue redress including to ensure that stakeholders representation on the board of the NPC rather than leaving it to government appointees.
Tuesday, September 14, 1999 |
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