Ndubuisi Francis in Abuja
The penchant for many contributors to indulge in multiple registrations is a major challenge of the Contributory Pension Scheme (CPS) since its commencement in 2005.
The problem not only poses a challenge to the regulator- the National Pension Commission (PenCom) and pension fund administrators (PFAs), but also the contributors themselves.
The Regional Manager, North-central, Trustfund Pensions Plc, Mr. Maurice Ogar, who made the disclosure at an interactive session with journalists in Abuja recently, noted that registration into the pension scheme should be done only once, irrespective of whether one changed employment or not.
Ogar stated that all a contributor needed on registration was a Retirement Savings Account (RSA), a defined contribution plan required under the Pensions Reform Act 2014 and a personal identification number (PIN).
On leaving a former employment, he stated that the contributor was not supposed to embark on a fresh registration, but to continue with the contributions with his RSA.
He, however, observed that some enrollees indulge in multiple registrations, thereby subjecting their PFAs, themselves and the scheme into unnecessary complications, adding that his company insists on not registering anyone who had earlier enrolled into the scheme.
Speaking on Trustfundâ€™s impressive run, Ogar said the PFA which at inception had the distinction of mustering the highest share capital in the country, also posted an improved return on investment of 19.2 per cent across various portfolios in 2007.
This, he pointed out, beat average inflation rate of 16.5 per cent in 201, noting that this was enough to accommodate market uncertainties experienced that year.
He stated that the PFA currently has close to N1 trillion fund under management.
Speaking on the impending multi-fund investment structure for all contributors under the Contributory Pension Scheme, Ogar said all active young contributors between 18 and 49 years will be under Fund two, with about 60 to 70 per cent of contributions to be invested in bonds and treasury bills, while the balance would go into money market and other instruments.
Fund three, he said, is a pre-retirement fund for those between 50 and 60 years bracket, with 80 per cent of the funds to be invested in bonds and treasury bills.
The fourth fund would be a retireesâ€™ fund set aside for those aged 60 years and above.
Among the 21 PFAs in the country, Trustfund Pension currently has the highest share fund (shareholdersâ€™ money) of N5.9 billion.