James Emejo in Abuja
The Pension Fund Operators of Nigeria (PenOp) has expressed worry over the recent pull-out of the military from the contributory pension scheme, stressing that if the trend was allowed to continue, it could have devastating effect on the budding scheme.
There had been increased agitation particularly from the uniform men to quit the scheme over discontent on payment terms.
But speaking in Abuja during an interactive session with newsmen, Managing Director, Sigma Pensions Limited, Alhaji Umaru Modibbo, said if the trend was not checked, it could become unhealthy and chaotic for the new scheme.
He said: “This is not healthy for this market and they are trying to discredit something that has been proved to be working very well.
This scheme is working...if it (withdrawal) continues; it is going to bring a lot of chaos. We should drum up public opinion against people leaving this scheme because the scheme is working for the better of everybody.”
Modibo also said there had been misconceptions on the real intent of the retirement savings scheme.
According to him: “The essence of the scheme is not to be giving you money on a monthly or daily basis; when you are old and weak and nobody can employ you, that’s when you need this money so that you can continue to sustain your living until you pass away.
That is the essence of the scheme. People are mixing it up. If you want to have a savings account, nobody stops you from having a savings account but it is not a substitute for your retirement savings account-this is the misconception people are having.
Don’t mix the retirement savings account as the money you can go and withdraw on the counter. It is meant to be kept until you are weak and when nobody can employ you.”