Explaining how the NPF Pensions came about, the pension regulator said it was borne out of government's refusal to allow members of the
In compliance with this directive, the police authorities incorporated a limited liability company, the
Economic benefits of NPF Pensions
Notwithstanding the challenges posed by the licensing of the police PFA, there are many benefits that the pension industry as well as the Nigerian economy stands to gain from the establishment of the PFA.
The first has to do with the sense of fulfilment among police officers across the board.
Currently, members of the Nigerian Armed Forces and other security agencies are exempted from the contributory pension scheme by virtue of the nature of their job. The Nigerian Police Force, an arm of the security network in the country feels short-changed not being allowed to go the way of other security agencies. They tried so much to pull out of the system, even taking their agitation to the Presidency which directed them to remain in the scheme and find other means of addressing their grievances.
Now with the establishment of a PFA specifically for them, they feel secured, believing that issues relating to their job and career specifically would be adequately addressed to suit their peculiar needs like other security agencies.
In addition to this, they are also assured that their retirement savings will never be pilfered by anybody since the funds are under the custody of licensed Pension Fund Custodians (PFCs).
Another equally important benefit is that
The licensing of a Police PFA is also expected to help the Federal Government save money by plugging the holes in police pension management system and ensure that only the true beneficiaries get paid by government, putting an end to menace of ghost officers and multiple payments to some retirees.
Management of Police PFA
The new police PFA would be managed independently by professionals who pass the fit and proper persons test in addition to having satisfied the due diligence requirements and approved by the Commission in line with the guidelines for appointment to board and top management positions of PFAs and PFCs.
The pension regulator has also assured Nigerians and members of the police force who have Retirement Savings Accounts, RSAs, and are contributing under the scheme particularly, that there is no intention whatsoever to deprive them of their right to choose a PFA to manage their fund.
"Every police officer will, in line with section 11(2) of the PRA 2004, be at liberty to transfer to another PFA of his/her choice when the transfer window opens," the regulator stressed.
Controversy over N305 billion
On the issue of transfer of N305 billion to the NPF Pensions,
To make the process smooth, the regulator has developed an operational framework guiding the reassignment of Personal Identification Numbers (PINs) and transfer of records of all
It promised to continue to engage all licensed operators and stakeholders on the modalities for reassigning PINs and transfer of records for the benefit of the pension industry. Also,
These ensure that PFAs are not reckless in their investment decisions, while ensuring that only the right beneficiaries would have access to pension money.
Also, pension assets held by PFCs are guaranteed to the full sum and value even as risks for instruments that pension funds could be invested in are rated constantly by
Contrary to the insinuations that the N305 billion accumulated pension savings of members of the police force would be handed over to the police hierarchy, the fund remains in the custody of PFCs in line with provisions of the law. Also, NPF Pensions would be managed by fit and proper persons without any interference by the police hierarchy.
Most Popular Stories
- Homeowners More Satisfied With Mortgage Servicers
- Discounts Help U.S. Auto Sales Sizzle in July
- Russia, Ukraine Now Face Off Over Football Clubs
- Colorado Issuing Immigrant Driver's Licenses
- Recruiting and Keeping the Perfect Employee
- MassMutual Teams Up With ALPFA
- Chrysler U.S. Sales in July Hit 9-Year High
- Fiat Looks Abroad After Chrysler Merger Vote
- Obama Vows to Veto House Immigration Bill
- Dow Wipes Out Gains for the Year: What Happens Now?