Law professor wants role of NSITF properly spelt out
THE role of the Nigeria Social Insurance Trust Fund (NSITF), under the new
Pension Act must be properly spelt out, acording to a law professor, Oluwole
Akanle.
Akanle, who was making an appraisal of the Act in Abuja at a workshop organised
by the Nigeria Labour Congress (NLC), noted that when done its goals and objectives
would be met.
According to him, there is no statement in the Act that answered the question
of whether the current contributions by workers to the fund is meant for the
Contributory Pension Scheme (CPS).
Akanle, who is of the Centre for Law and Development Studies, Lagos, said
the provisions of the fund had changed about 10 times ever since plans to
formulate the new Act got under way.
�There is still the question of who owns NSITF and who are the shareholders.
Until this is answered, the question as to its establishment lingers on.��
He, however, suggested that the fund must establish a Pension Fund Administrator
(PFA)
to manage the aspect of pension while the fund should manage the aspect of
social insurance for its contributors.
Pointing out some grey areas in the Act, Akanle said the law had not made
distinction between pensionable staff, pensioners, deceased pensioners and
their next of kin.
The professor noted that problems could arise as regard the stipulation of
the law that mandated every employee to maintain a retirement savings account
with a PFA of his/her choice.
�In the case of mismanagement or bankruptcy on the part of PFA, would the
government pay the entitlement of the affected staff?� Akanle asked.
He noted that existing occupational pension schemes (OPS) of the private sector
might continue provided they were fully funded and the funds and assets properly
separated from that of the employer.
According to him, its fund and assets should be held by a custodian and every
employee operating the OPS should be free to opt for the CPS.
Akanle, however, suggested that the application of the Act should at present
be limited to the public sector so as to allow the private sector to appraise
its implementation before adoption.
Earlier in his remarks, NLC President, Mr. Adams Oshiomhole, had said the
congress needed to be well educated on what the law stipulated hence the need
to seek expert opinion.
�This will equip us to be able to make decisions at the end of the day,� Oshiomhole
stated.
In her remarks, the President of the Trade Union Congress (TUC), Mrs Peace
Obiajulu, noted that government did not carry workers along in its policy
formulations hence most of its laws were not favourable to workers.
Also adding his voice, the President of the Congress of Free Trade Unions
(CFTU), Mr. Princewill Ojeh, said decisions reached at the workshop would
lay a foundation for workers in the nation.
Monday, July 19, 2004
